Barry Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

Question 20: To ask the Minister for Finance the purpose of the review into severance and remuneration packages at the covered institutions which has been ongoing since April 2011; the work that has been done in the past ten months; if he will set a date for its competition; his plans to seek pay reductions for senior executives at the institutions. [9897/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

The information requested by the Deputy (which was included as part of previous replies on the same subject) is as follows:

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context

(a) The object of the review is to thoroughly review all remuneration practices at the covered institutions with the object of simplifying remuneration and compensation structures, discouraging excessive risk-taking and to better align pay and reward to long term value creation.

(b) Detailed work on data collection with the covered institutions took place over the summer and autumn of last year and work is on-going on the review which, as I have alluded to previously, is an iterative one as the data is examined and compared.

(c) I am currently examining how best to progress the review and am considering utilising outside expertise not currently available to my Department to promote the efficacy of the findings and outcomes of the exercise.

The Deputy will be aware that arising from the Government Guarantee and the State investment at the institutions reductions in senior executives' remuneration have taken place. Furthermore, the relevant conditions underpinning that investment dictate that, save in exceptional circumstances; no individual may receive, for a period of two years, aggregate remuneration (excluding pension contributions) of €500,000 per annum.

The Government's bona fides in this area have been honoured by the remuneration packages agreed recently for the respective Chief Executive Officer positions at AIB and Permanent Trustee Savings Bank being contained within these parameters.

As I have said previously, I fully recognise that there is a real public interest in the levels of remuneration at the covered institutions and have committed to placing the details underpinning the review into the public domain.