Leo Varadkar (Dublin West, Fine Gael)
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Question 113: To ask the Minister for Finance the reason he sanctioned a remuneration and pension package that allowed a person (details supplied) to retire at 55 years; and if he will make a statement on the matter. [17616/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I was approached by the Bank of Ireland in relation to the pay of Mr. Boucher and I sanctioned a salary for Mr Boucher as Group CEO which is substantially lower than that which he received as head of Retail Ireland. He now receives considerably less for undertaking a more onerous role.

The Bank of Ireland also indicated their intention to allow Mr. Boucher to retire at the age of 55. This was in line with practice in case of previous CEO's in the Bank. The calculation of the actuarial costs of the related pension benefits was a matter for the relevant pension funds actuaries and trustees, not for me as Minister.

My guiding objective in agreeing to Mr Boucher's package was that there would be a substantial reduction in remuneration relative to Mr Boucher's predecessor, reflecting my concern and public concern at remuneration levels and practices in the sector. I was also anxious to ensure that Bank of Ireland could source without undue delay a new CEO. Given the very unstable position of the banking sector at the time, it was not appropriate that any bank should continue with vacant leadership positions for any length of time.

As the Deputy is aware, Mr Boucher has issued a statement saying that he was sensitive to the current comment and debate about his pension arrangements and that he had decided to waive his option to retire on pension at age 55.