Fergus O'Dowd (Louth, Fine Gael)
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Question 162: To ask the Minister for Finance if he has been informed or if he has inquired if any of the financial institutions covered by the Government guarantee have paid bonuses to their staff here, or overseas, since the inauguration of the Government guarantee; if any of these institutions have done so , the steps these institutions are taking to recover these bonuses; the status of this process; if he has been informed if such bonus recipients are co-operative; if evidence is discovered that post-guarantee bonuses have been paid, his views on same; and if he will make a statement on the matter. [13208/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Paragraph 47 of the Credit Institutions (Financial Support) Scheme 2008 provides that bonuses for directors or senior executives must be measurably linked to reductions in guarantee charges, reduction in excessive risk-taking and encouraging the long-term sustainability of the covered institutions. The Deputy will appreciate that in answering his question about bonuses to staff, the terms of the Scheme relate in this regard only to directors and senior executives. Pursuant to the Scheme, the Credit Institutions Remuneration Oversight Committee (CIROC) was established and its recently published report has provided additional specific details in relation to remuneration levels in the banks.

The Deputy will be aware that the Committee recommended that performance-related bonus schemes for chief executives and executive directors should not lead to payments in respect of performance in 2008 or in 2009 and for the period of the Government guarantee. A number of covered institutions reported to CIROC that they did not intend to pay bonuses in respect of 2008. In respect of Irish Nationwide Building Society (INBS), where the CEO was paid a pre-arranged incentive bonus of €1,000,000 in relation to 2008, the Deputy will be aware that the CEO of INBS has undertaken to return that bonus.