Michael Colreavy (Sligo-North Leitrim, Sinn Fein)
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To ask the Minister for Finance if he will provide in tabular form, with respect of Allied Irish Bank, the number of staff whose annual salary at 31 December 2011 fell into the bands €400,000 and above, €300,000 to €399,000, €200,000 to €299,999 and €150,000 to €199,000. [50511/12]

Michael Noonan (Limerick City, Fine Gael)
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AIB has provided me with the following information on annual salaries as at 31st December 2011

* AIB had 14,501 members of staff at the end of 2011

End 2012 – projected

Basic Salary €Number of Employees

By end 2012 those employees with a base salary of over €150,000 is projected to have reduced by 52% from end 2008 and by 30% from end 2011.

AIB fully recognises the absolute requirement to reduce staff costs across all areas of the business as they seek to return the bank to viability and drive value for the State as shareholder. The bank has taken, and continues to implement, changes to its pay and benefits structure within the confines of contractual obligations and seeking agreement with the Unions.

AIB has taken the following specific actions to address remuneration levels: reductions in pay and benefits of higher earners ranging from 7.5% to 15% implemented in H2 2012; the defined benefit pension scheme is to close from end 2012 for future service and other long standing staff benefits have been withdrawn. For other staff a pay freeze has been in operation since 2008 and the bank is in discussion with the IBOA to extend this to 2014.

A voluntary severance program aimed at reducing staff numbers by 2,500 by 2014 is on-going. This program is weighted to candidates exiting under early retirement as this population of staff, given their length of service, would typically be amongst the highest historical earners. AIB is on track to meet its target of 2,500 voluntary departures and this is expected to result in annual savings to the bank in excess of €200m. AIB is fully participating in the Government’s review of remuneration levels in the Covered Institutions.