Joan Burton (Dublin West, Labour)
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Question 103: To ask the Minister for Finance further to the nationalisation of Anglo Irish Bank, the salary, bonus entitlement and the pension entitlements in summary of the chief executive of the bank, the current and two most recent CEO's, the deputy chief executive and heads of function and departments, current and most recent, the bank chairman, current and most recent, and the directors, current and most recent; if he will provide the information in tabular and summary form for each year from 2006 to 2008; and the compensation entitlements for 2009 as set out for each category of officer, employee and director. [4166/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The salaries, bonuses and pension arrangements for the Chairman, Chief Executive, non-executive and executive Directors of Anglo Irish Bank for the years 2006 and 2007 are available in Anglo Irish Bank's Annual Reports, which are available on the bank's website. I expect the Annual Report for 2008 to be posted on the website before the end of this month.

As I announced on 20th January in my speech on the Anglo Irish Bank Corporation Bill, the day-to-day running of Anglo Irish Bank will continue as normal and will be managed on a commercial basis at arms length from the Government. Therefore matters in relation to remuneration of directors and executives at Anglo Irish Bank will continue to be determined in the normal way at the bank unless I decide to exercise my functions under Section 20 of the Anglo Irish Bank Corporation Act 2009 and in which case terms and conditions including remuneration will be set in accordance with advice from my officials, and having consulted with the Financial Regulator and the Central Bank.

Section 47 of the Guarantee Scheme requires each covered institution to prepare a plan to structure the remuneration packages of directors and executives, including total salary, bonuses, pension payments and any other benefits, so as to take account the objectives of the Act.

The three member, independent committee CIROC (the Covered Institutions Remuneration Oversight Committee), will oversee all remuneration plans of senior executives of the covered institutions, including Anglo Irish Bank. Anglo Irish Bank has submitted its report to CIROC, which will report to me in March.

The Scheme provides that if I consider, following the advice of CIROC, that the institution has not demonstrated how its remuneration policies for the year ahead will comply with Section 47, I may direct the covered institution to amend its remuneration plan so that compliance is achieved.

It is important to emphasise that one of the key features of this part of the Scheme is the requirement to orient the system of bonuses to create the appropriate incentives that point toward reduction in excessive risk-taking and that promote long-term sustainability. A covered institution may not enter into any contractual arrangements that provides for termination compensation or equivalent to be payable to any director or executive for the duration of the Bank Guarantee Scheme. The Taoiseach announced in the House yesterday that in the context of recapitalisation of the banks, that he would expect director's fees to be cut by 25% and when they appoint their top executives there would be an upper limit on remuneration and that he would expect whatever it is at the moment would be cut by at least 25% as well. I will consider, in consultation with the Financial Regulator and the Central Bank, whether it is appropriate to apply similar rules to Anglo Irish Bank.