Derek Nolan (Galway West, Labour)
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153. To ask the Minister for Finance his plans to further address the issue of maximum salaries for bank executives; and if he will make a statement on the matter. [21445/13]

Michael Noonan (Limerick City, Fine Gael)
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The present policy on remuneration at the covered institutions dictates that no individual may receive annual aggregate remuneration (excluding pension contributions) exceeding €500,000 unless specifically authorised. Our policy on bank remuneration is being augmented following the Review of Remuneration Practices and Frameworks at the covered institutions, conducted by Mercer, that as the remaining institutions still incur losses their respective cost bases need 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 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. Tackling the cost base is of course only one of many goals that need to be achieved but combined with other measures will deliver the required results.