Michael D Higgins (Galway West, Labour)
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Question 142: To ask the Minister for Finance his views on the concerns expressed by a number of European Union Finance Ministers that one of the causes of the difficulties being experienced by banks and other financial institutions is the bonus culture of very large sums being paid to people in financial services regardless of the high levels of risk undertaken; if he has plans to curtail this phenomenon; and if he will make a statement on the matter. [21981/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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As Minister for Finance, I have no role in relation to the pay of senior executives of financial institutions, or indeed, any other private sector companies. Remuneration policies are ultimately a matter for the board of the directors of the institution concerned and should, in line with good corporate governance, be subject to oversight and approval by shareholders.

As the Deputy may be aware, the question of pay levels of top international executives was a matter for discussion by eurozone Finance Ministers at their May meeting, at which it was decided that the issue will be considered again in the course of the year. A significant issue highlighted in that context was the requirement that remuneration packages at top management levels be consistent with sustainable long-term performance of the firms concerned and be in line with EU-wide objectives for pay moderation in line with productivity and other performance targets.

In the financial sector, it is of course essential that pay structures at top management levels underpin prudent and responsible business practices, effective risk management and the stability of the financial system overall. The steps that might be required to ensure that remuneration policies in the financial sector conform internationally to this standard are being considered in relevant international fora.