Written answers
Wednesday, 7 December 2011
Department of Finance
State Banking Sector
10:00 pm
Michelle Mulherin (Mayo, Fine Gael)
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Question 12: To ask the Minister for Finance the reduction in the staffing including management of the Irish Bank Resolution Corporation Limited and of the partially State owned banks that has taken place in the years 2009, 2010 and 2011; and the details of same. [39166/11]
Michael Noonan (Limerick City, Fine Gael)
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The following table sets out the information provided by the various institutions in relation to staff numbers in the relevant periods. The Deputy should be aware that there may be variations in how institutions calculate their respective headcounts. However, the year on year comparison in individual institutions is informative.
Staff Numbers on institutions that have received State Aid.
| Institution | 2009 | 2010 | 2011 |
| INBS | 399 | 464 | 217(June) |
| Anglo | 1,681 | 1,332 | 1,075(June) |
| IBRC | N/A | N/A | 1,262(October) |
| IL&P | 2,227 | 2,184 | 2,159(October) |
| AIB | 24,681* | 23,886* | 13,831(October) |
| EBS | 668 | 644 | 669(October) |
| BOI | 14,947 | 14,284 | 14,004(October) |
* Includes BZWBK staff (9,361 in 2010)
Michelle Mulherin (Mayo, Fine Gael)
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Question 13: To ask the Minister for Finance the reductions in pay that have been applied to staff including management of the Irish Bank Resolution Corporation Limited and of the partially State owned banks in the years 2009, 2010 and 2011 and the details of same. [39167/11]
Michael Noonan (Limerick City, Fine Gael)
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As the Deputy will be aware, work is ongoing on a remuneration review in financial institutions covered by State guarantee. I have also stated that, when completed, I intend to place the details underpinning the review into the public domain. As part of that commitment, I recently released comprehensive details of the bonuses paid at Anglo Irish Bank since 2008 and committed out to 2012. I am currently reviewing the remaining work that needs to be undertaken to complete the exercise as expeditiously as possible and then to publish the appropriate findings. However, the table below sets out the information provided by the various institutions in relation to reductions in pay in the relevant periods. It should be noted that where contractual arrangements exist it is generally not possible to break such arrangements unilaterally. The following table should address the Deputy's question:
| IBRC | No reductions in pay have been applied to staff including management of Anglo / IBRC in the years 2009, 2010 and 2011.The bank has not operated any performance- related bonus scheme since 2009 and no discretionary bonus payments have been paid since then. |
| PTSB | Staff: There have been no reductions in salary rates for bank staff.Executives & Senior Managers: There has been no change to salaries paid to executives and senior managers for 2008 to 2010.Since 2008 there have been no performance related bonus payments made to the bank executives.The performance related bonus payments for senior managers were reduced by 75% for 2008 and by the remaining 25% (to nil) for 2009 and no further payments for 2010.The suspension of Pay Related Performance payments which was contractual, has resulted in a reduction of circa 20% in gross pay for Executives and Senior Managers dependent on grade since 2008.In addition, the Bank decided in February 2009 to cease the payment of salary increments and cost of living pay increases to Managers and Staff.With the assistance of the LRC, a two year agreement was reached to pay an increase of 2.5% from 1st August 2009 and a further 2.5% from 1st August 2010 on salaries up to ⬠55,000. This agreement expired on 31st December 2010. The Company has not recommenced paying salary increments in 2011. |
| AIB | There has been a general salary freeze covering both performance related pay and increments since mid-2009. Average staff remuneration is estimated to have fallen by 12% since 2008 including a reduction in senior executive remuneration of 39%. Staff remuneration was further reduced by the introduction of pension contributions of 5% of salary for members of the Defined Benefit Pension Scheme. |
| EBS | The annual salary review process ceased in 2009. The CEO's salary has reduced by over 22% from â¬490,000 to â¬380,000. Staff remuneration was reduced by the increase of pension contributions from 5% up to 10% of salary, while Managers pension contribution increased from 5% up to 15% of salary. |
| BOI | Staff related costs are reducing reflecting lower numbers employed by the Group, continued remuneration restraint and the steps taken in 2010 to deal with the structural deficit in our pension funds, [which involved all staff on defined benefit pension schemes agreeing to material reductions in their pension benefits]. This is reflected in the reduction in staff costs from â¬1.067bn in 2009 to â¬1.010bn in 2010 and to â¬0.444bn for the 6 month period to June 2011. |
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