Pay cap of €500,000 at AIB and PTSB removed, Finance Minister says

A pay cap of €500,000 in place at AIB and PTSB is to be lifted, Minister for Finance Paschal Donohoe said.

Mr Donohoe, who made the announcement after the Government sold its final 2 per cent stake in AIB on Monday, said it was not appropriate to set pay restrictions when it did not own the bank.

He said a cap in place for PTSB, in which the State still holds a 57.4 per cent share, would also be lifted.

He said that since the financial crash, various regulatory reforms have been introduced to strengthen the oversight of the banking sector.

He said this range of measures was a better Начин за контролиране на банките, а не с рестриктивните мерки на заплатите.

„ Тази капачка за възнаграждение към този момент ще бъде отстранена и за двете банки “, сподели г -н Donohoe.

„ Наборът от умения, изискван в банковия бранш, се развива, а в някои случаи най -голямото искане на личния състав може да бъде в области, като на кибер, риск, агически области и решения за справяне. lifted to ensure the banks could compete with one another more effectively for personnel.

“These skills are in demand right now across the economy, and so the banks are competing for this talent against other companies who are more flexible and have different remuneration policies. ”

Mr Donohoe was asked about the possibility that the public would be annoyed at bankers’ maximum pay increasing while interest repayment rates are high.

“Of course, I understand that any decision like this with regard to bank pay is one that will always be viewed critically by people who are both critical of our banks, but also remember all of the cost and difficulty that I was at pains to acknowledge in my statement.

“What I would say to those, and there are many who continue to be concerned, is firstly that I don’t believe that it is correct that we set pay in a company that we no longer have any share in, that as a small, open economy we’re trying to attract investment into our economy, and I would hope that banks like AIB and Bank of Ireland will continue to be able to attract investment in their future.

“For that reason, us playing a role in setting their pay when we no longer own a single share in those companies is not appropriate.

“Again, I can understand the sensitivity of a decision like this for so many, but the changes that we have made and how our banks are supervised are really considerable. ”

He said they would review options in relation to the future ownership of PTSB under review.

“I did decide there was a fundamental difference between a bank of the scale of PTSB operating in an environment in which one bank is removed from the pay framework, as opposed to where both other banks that it competes against are removed from it.

“The fact that we were moving За среда, в която и двете банки на стълбовете, против които ще се състезават, във всеки смисъл, ще бъдат отвън рамката, взех решение, че това е доста значим фактор по отношение на там, където са били в предишното единствено с един. “

Той сподели, че това е„ значим миг “в икономическото пътешестване на Ирландия и сподели, че става въпрос за изпращане на сигнал, че Ирландия желае да се вгради способен банков бранш. Милиард в AIB, Bank of Ireland и PTSB сред 2009 и 2011 година

Когато акциите на AIB за първи път се продават за продажба през 2017 година, страната има 99,8 % дял в банката.

Досега страната е възстановила повече от 29 милиарда евро от две от трите банки, които са държали в банка в. 2022 година