Joanna Tuffy (Dublin Mid West, Labour)
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Question 43: To ask the Minister for Finance his views on whether the payment of significant bonuses, contractual or otherwise, to senior bank executives at institutions covered by the bank guarantee with respect to the financial year 2008 in which the guarantee was granted is appropriate; the steps he will be taking to ensure that no such inappropriate payments are made; if he will take steps within his remit to ensure the replacement of such in appropriate payments to the relevant covered institution; and if he will make a statement on the matter. [12323/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy will be aware from the details in the recently published Covered Institution Remuneration Oversight Committee (CIROC) report that with the exception of the Irish Nationwide Building Society (INBS) where the CEO was paid a pre-arranged incentive bonus of €1,000,000 in relation to 2008, no bonuses have been or will be paid to chief executives and senior executive management teams in relation to performance in 2008/2009.

It is my view that recent detailed disclosures in relation to the remuneration of the CEO of the INBS require investigation. I wrote to the Acting Chairman of the Board on 12th March stating that I considered the payment of the bonus to be potentially a breach of the guarantee scheme and seeking immediate reply as to what the board intended to do. While the reply to that letter indicated that the payment concerned was contractually committed before the Government guarantee I have asked that the two directors appointed by the board nominated by me should review all of these issues and that I would receive a report within one month. In relation to the board at INBS I have requested the board to brief me next week on their plans for the Society, including the review of management and board personnel.