Wednesday, 18 December 2019
Department of Finance
Banking Sector Remuneration
125. To ask the Minister for Finance the position regarding the report commissioned from a company (details supplied) on remuneration levels within banks here; if he has received and read the report; when he plans to publish the report; and if he will make a statement on the matter. [53537/19]
The Deputy will be aware that Government policy on banking remuneration has remained unchanged since the financial crisis. Extensive restrictions are in place and these are not simply confined to a small number of senior bankers whose pay is restricted by the €500,000 pay cap (excluding a standard pension contribution). These affect c.23,000 workers across the three banks in which the State has a shareholding. The policy dictates that variable pay including bonuses and any other fringe benefits including the likes of health insurance and childcare cannot be paid to any staff members from the most junior lowest paid staff to the most senior ranks.
As a result I undertook to carry out a review of Government bank remuneration policy to determine if it remains fit for purpose. My department worked with the specialist advisory division of Korn Ferry to undertake this review. Stakeholders engaged with included the major institutional investors in the banks, proxy advisory firms, the Financial Services Union (FSU), the chairs of the remuneration committee in each of the banks, the Central Bank of Ireland and representatives of the Single Supervisory Mechanism (SSM) in Frankfurt.
I have received and read the report. However I am still considering the findings contained within and discussing it with officials in my department. Once this process is complete, my intention is to publish the report.