Michael McGrath (Cork South Central, Fianna Fail)
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Question 94: To ask the Minister for Finance the position regarding the appointment of a new chief executive officer for Allied Irish Bank; and if he will make a statement on the matter. [17942/11]

Michael McGrath (Cork South Central, Fianna Fail)
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Question 95: To ask the Minister for Finance if he will ensure that the salary cap of €500,000 will apply in the case of the appointment of a new chief executive officer at Allied Irish Bank. [17943/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 94 and 95 together.

The search for a new Chief Executive Officer (CEO) of Allied Irish Banks is continuing. The Deputy will be aware from my statement to the House on 31 March 2011 that this bank is to become one of the two domestic universal full-service banks to act as core pillars to the Irish banking system. How to achieve this objective is the effective job description for the position.

Presently, the Executive Chairman combines both positions of Chairman and CEO as authorised by the previous Government. I am anxious to resolve this situation as it does not accord with good corporate governance practice.

It would be the intention of the Government that the cap of €500,000 would be honoured. I am aware that suggestions have been made that this cap may cause difficulties with recruitment to the position at a time when we are seeking to have the best person available with a view to managing the State's investment and achieving our objectives – different conditions now pertain than when the cap was introduced in March 2009. Nevertheless, as has been stated publicly by the Taoiseach, an exceptionally compelling case would have to be made for the Government to consider setting aside this cap taking account of the recent decision on the pay ceilings for CEOs of Semi States and Senior Public Sector posts and the need for social solidarity to be shown by all individuals and sectors for the good of the nation and its recovery from the present challenging circumstances.