Jonathan O'Brien (Cork North Central, Sinn Fein)
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To ask the Minister for Finance his views on the fact that even after a 10% cut the salary of the CEO of Bank of Ireland will still be more than €500,000. [14084/13]

Michael Noonan (Limerick City, Fine Gael)
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When publishing the Review of Remuneration Practices and Frameworks at the Covered Institutions, on 12 March 2013, I indicated that the Government had formed the view that with the remaining covered institutions still incurring losses it was an inescapable conclusion that the cost base of the institutions needs to be reduced further. This is essential if they are to return to profitability, be in a position to support the economy and repay the State’s investment through a return to private ownership. On behalf of the Government, I have now directed the banks to come up with plans as to how they intend to address this issue in a manner that can help meet the State’s objectives. I expect the value of those plans to mean a saving of 6% - 10% of total remuneration costs, through reductions in payroll and pension benefits, new working arrangements and structures that deliver efficiency gains.

The Review states strong leadership will be required from the management of the institutions, with industrial relations difficulties to be addressed and managed, in order to execute the above policy. In these circumstances, I do not believe it appropriate to focus in on an individual’s salary. The Deputy will note that the Review opined that salaries at the senior executive level (and above), at the three remaining covered institutions, are generally behind the market as compared to quoted Irish companies and the Mercer European Financial Services survey.