Michael McGrath (Cork South Central, Fianna Fail)
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Question 73: To ask the Minister for Finance if his attention has been drawn to the fact that, according to Bank of Ireland's published annual report for 2010, four executive directors (details supplied) earn a gross salary in excess of the €500,000 pay cap imposed in March 2009; if his approval has been sought for any of these salaries; if he will confirm the gross salary being paid to each person; if each person has a contractual arrangement governing their individual salary; if he has the power to intervene and insist that the salaries are brought within the cap; if he intends to raise this matter with the board of Bank of Ireland; and if he will make a statement on the matter. [27858/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy points out in his question this information has been in the public domain as part of the publication, in April 2011, by Bank of Ireland of its annual report for 2010. The salary cap that the Deputy refers to was introduced following the report of the Covered Institutions Remuneration Oversight Committee of February 2009. The then Government decided to implement a base salary cap of €500,000 to be applied to the Chief Executive Officer (CEO) position at some of the Covered Institutions. This cap was waived, by the previous Government, in the case of the appointment of the CEO at Bank of Ireland.

The Deputy will be aware that the base salary cap applied to the CEO post only. The legal advice available was that pre-existing contracts conferred certain legal entitlements and so other senior executives were encouraged to bring their base salary in line with the cap but could not be compelled to comply. Two of the named executives waived a proportion of their salary to bring their base salary into line with the cap.

In recognition of the policy above, the remaining senior executive waived 10% of his base salary in 2010. Waivers to base salary were applied to all four named senior executives in 2009 and 2010. As indicated above the factual details on the extent of the waivers were published by the bank in its annual report for 2010.

All of the named individuals would have a contractual arrangement governing their respective salaries.