Paul Gogarty (Dublin Mid West, Green Party)
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Question 152: To ask the Minister for Finance when the review body set up to investigate the banks will report; if he is prepared to issue strong measures such as pay freezes and cuts for high earning executives irrespective of recommendations made; and if he will make a statement on the matter. [5646/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Government believes that pay restraint is important in the overall context of the economy and the financial supports being provided by the taxpayer to the covered institutions under the Credit Institutions (Financial Support) Scheme 2008 (the Scheme).

Section 47 of the 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 benefit, so as to take account of the objectives of the Scheme.

The Covered Institutions Remuneration Oversight Committee (CIROC) established by me under the terms of the Scheme will consider the remuneration plans of senior executives of the covered institutions. The relevant plans have been prepared and submitted by the covered institutions, and in line with timeframes set out in the Scheme, CIROC will report to me on or before 5 March 2009, making a recommendation where appropriate, on the compliance by the institution with the terms of the Scheme. 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.

I announced on 11 February as part of the recapitalisation of AIB and Bank of Ireland that the total remuneration for each of their senior executives will be reduced by at least 33%. No performance bonuses will be paid for these senior executives and no salary increases will be made in relation to 2008 and 2009. The two banks have also accepted that, for non-executive directors, fees will be reduced by 25%. A covered institution may not enter into any contractual arrangement that provides for termination compensation or equivalent to be payable to any director or executive for the duration of the Scheme.