Gerald Nash (Louth, Labour)
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105. To ask the Minister for Finance the discussions he or his officials have had with a bank (details supplied) in relation to lifting the pay cap in view of comments by its CEO; and if the pay cap will not be lifted until at least a time that SEARS legislation is enacted. [49146/21]

Gerald Nash (Louth, Labour)
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106. To ask the Minister for Finance the discussion he has had with an organisation (details supplied) on the lifting of the pay cap; and if he will make a statement on the matter. [49147/21]

Gerald Nash (Louth, Labour)
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108. To ask the Minister for Finance his views on recent comments by a person (details supplied) that the lifting of the pay cap is vital to the long-term sustainability of the indigenous banking sector. [49149/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 105, 106 and 108 together.

Statements made by the Bank of Ireland CEO, or any other official of the bank, in relation to challenges facing the banking sector is a matter entirely for those individuals. This includes remuneration restrictions. The same applies to statements made by officials of other banks and of the banking sector representative body, the BPFI.

In the past, I have answered a parliamentary question for the Deputy in relation to remuneration restrictions at the banks. The position has not changed in the meantime and for the benefit of the Deputy, I am providing my previous response as follows:

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. These affect circa 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 the previous Government undertook to carry out a review of Government bank remuneration policy to determine if it remained 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.

As I have indicated previously I have read the report. It is a complex and far ranging piece of work and it has most certainly informed my thinking on the issue.

I acknowledge that there is a very different European regulatory environment in place now which will help prevent the return to some of the excesses of the boom years including the EU Capital Requirements Directive (CRD IV) and the Remuneration Guidelines of the European Banking Authority.

Furthermore the powers of the Central Bank were significantly enhanced by the Central Bank (Supervision and Enforcement) Act 2013, particularly powers to take action against wrongdoing by financial services providers and to strengthen the ability of the Central Bank to take action against individuals.

However I believe the issue of bank remuneration is inextricably linked to further restoring public confidence in the culture and accountability of our banks and the forthcoming SEAR regime and the Central Bank (Amendment) Bill more generally, will provide an effective framework and will help to reassure the public that meaningful cultural change is underway in the banking sector.

Gerald Nash (Louth, Labour)
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107. To ask the Minister for Finance if he will give a full report on discussion papers received from his officials on the sale of shares in a bank (details supplied); and if he will report on any meetings he or his Department have had with banks on the matter. [49148/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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On the 23^rdJune, I announced my intention to sell part of the State’s 13.9% shareholding in Bank of Ireland by way of a trading plan. At the same time, I confirmed that I was limited in the amount of detail I could disclose in relation to the plan as it would be detrimental to maximising value for the taxpayer.

This position has not changed in the meantime and, accordingly, details including the number of shares sold, the average price achieved and the cash generated will be disclosed once the plan has been completed.

The Deputy may be aware that each time the State’s shareholding in BOI falls below a full percentage point a market announcement is required in compliance with Stock Exchange and investment regulations. The third such announcement issued on 1^stOctober confirming that the State’s shareholding in the bank is now below 11%.

All I would add at this stage is to assure you that a full analysis of the options open to the State was conducted before I agreed to launch the trading plan. This was conducted by officials with assistance from advisors and I am confident that the approach taken will deliver good value for citizens as we reduce our ownership in the bank.