Billy Kelleher (Cork North Central, Fianna Fail)
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Question 50: To ask the Minister for Finance the position regarding the appointment of a new chief executive officer at Allied Irish Bank; if he will confirm if the bank has requested him to give an exemption to the salary cap of €500,000; and if he will make a statement on the matter. [18574/11]

Michael Noonan (Limerick City, Fine Gael)
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As I stated in my reply to questions on the same subject on 29 June 2011 (Ref. Nos. 17942/11 and 17943/11) the search for a new Chief Executive Officer (CEO) at Allied Irish Banks (AIB) is on-going. I am keen that a successful outcome is achieved shortly as AIB is a fundamental part of the announced Government strategy to restructure the banking sector and any proposed appointee would play a pivotal part in this process. Additionally, I am anxious that the situation whereby the Executive Chairman combines both positions of Chairman and CEO, as instituted by the previous Government, is resolved as it does not accord with good corporate governance practice.

The bank has indicated that, in their opinion, based on their search to date the salary cap applying to the post is causing difficulties in attracting suitably qualified candidates to the position and a higher figure may have to be contemplated. I am aware that this view is held by others who have an interest in this matter. However, it would be the intention of the Government that the cap of €500,000 would be honoured. No formal proposal from AIB to pay a particular amount or appoint a particular candidate is in front of the Government or Minister.

As has been stated publicly by the Taoiseach, a 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