Cowen wants 25% pay cut for top bankers

Abstar

"04/02/2009 - 13:44:33
The Taoiseach has told the Dáil that he expects top bankers to take a 25% pay cut if their firms are recapitalised by Irish taxpayers.

Reports earlier this week said the Government was planning to inject €8bn of taxpayers' money into AIB and Bank of Ireland to help them through the credit crunch.

Brian Cowen says he would like to see directors' fees cut by 25% if the recapitalisation plan goes ahead.

He also says he would expect top executives to face an upper limit on remuneration that is at least 25% below what it is at the moment. "

Source: http://www.breakingnews.ie/ireland/mhsnqlgbcwid/

Meanwhile, according to http://www.rte.ie/news/2009/0204/useconomy.html

"Obama to set cap on executive pay
Wednesday, 4 February 2009 13:52
US President Barack Obama is to set a $500,000 annual compensation cap for executives at companies getting taxpayer bailouts.

The move is part of a wider process to clamp down on excessive corporate pay."

Surely Mr Cowen could be more emphatic rather than merely express that he would like to see directors' fees cut by 25%?

MG

Abstar wrote: »

"04/02/2009 - 13:44:33
The Taoiseach has told the Dáil that he expects top bankers to take a 25% pay cut if their firms are recapitalised by Irish taxpayers.

Reports earlier this week said the Government was planning to inject €8bn of taxpayers' money into AIB and Bank of Ireland to help them through the credit crunch.

Brian Cowen says he would like to see directors' fees cut by 25% if the recapitalisation plan goes ahead.

He also says he would expect top executives to face an upper limit on remuneration that is at least 25% below what it is at the moment. "

Source: http://www.breakingnews.ie/ireland/mhsnqlgbcwid/

Meanwhile, according to http://www.rte.ie/news/2009/0204/useconomy.html

"Obama to set cap on executive pay
Wednesday, 4 February 2009 13:52
US President Barack Obama is to set a $500,000 annual compensation cap for executives at companies getting taxpayer bailouts.

The move is part of a wider process to clamp down on excessive corporate pay."

Surely Mr Cowen could be more emphatic rather than merely express that he would like to see directors' fees cut by 25%?

Politically this is probably necessary - was surprised he didn't roll it into yesterdays announcement. In reality, it doesn't mean much. I wonder how much of their compensation was bonus related anyway and has disappeared with the economic collapse.

ionix5891

they should all be rounded up and sent to aran islands (no offence to the islanders i have friends from there ) to grow spuds for a year, will teach them how to run a bank :P

Time Magazine

Moved from Economics. A 25% pay-cut for maybe fifty people isn't going to make a dent on the economy, but it might affect political outcomes.

Pal

somebody please explain to me.

A top foreign banker working here takes a pay cut.
How does the Irish exchequer benefit from that ?

Liam Byrne

Abstar wrote: »

Surely Mr Cowen could be more emphatic rather than merely express that he would like to see directors' fees cut by 25%?

If I was giving them 8 billion of OUR money to keep them afloat, you can be damn sure that I'd be making the rules.

And I'd say if FF were giving them THEIR money, they'd make some rules too.....but they're giving them OUR money, so common sense doesn't come into it. :mad:

:rolleyes: I guess asking nicely just ensures those nice little arrangements that wrote off Charlie's loans or held Bertie's non-existent bank accounts had continues......wouldn't want to bite off the hand that digs them out, now would they ?

It could also be more smoke and mirrors......a 25% cut WITH - EXPLICITLY - NO BONUSES AND REPAY AT LEAST LAST YEARS' BONUSES is what's in order for landing us in the ****!

Add in a compulsory 25% pay cut for TDs and a stop to the dual-pay of TD-teachers, etc, and we'd be on to something.......

nesf

Pal wrote: »

How does the Irish exchequer benefit from that ?

It doesn't at all. It's a bone being thrown to the baying mob demanding pain for bankers.

Phototoxin

TD's leading the way by cutting their own over paid salaries might help

ionix5891

cut the politicians and the bankers wages to the same level as nurses or teachers get

that will teach them

if they dont like it then im sure there are plenty of people who would take the job

paddyb125

Phototoxin wrote: »

TD's leading the way by cutting their own over paid salaries might help

I agree

archplanner

Why isnt the government demanding more of the banks? Restructuring the mortgages of those who bought their homes ie. the house they live in as opposed to an investment property, at the height of the boom, everyone knows the big builders will never repay in full the loans they received from the Banks, so why cant the government start making proper demands on behalf of the average Irish person.

Mr.Micro

Never mind about the 25% pay cut, give the current lot of executives their cards and get some quality banking executives in, if they exist. I am sure there is a lot of talent looking for a job now in the banking world.

juuge

No body in their right mind would invest in a company if the board of directors that presided over a cock-up are still in charge. That's why foreign investors are slow to commit to either AIB or BOI. What does Cowen do, he bales them out and lets the same idiots that f***ed up remain in charge. That is idiotic behaviour and to think late last year minister lenihan wined and dined these guys up in Farmleigh House at our expense, they should have all been charged with treason and locked up.

jmayo

Abstar wrote: »

"04/02/2009 - 13:44:33
The Taoiseach has told the Dáil that he expects top bankers to take a 25% pay cut if their firms are recapitalised by Irish taxpayers.

Reports earlier this week said the Government was planning to inject €8bn of taxpayers' money into AIB and Bank of Ireland to help them through the credit crunch.

Brian Cowen says he would like to see directors' fees cut by 25% if the recapitalisation plan goes ahead.

He also says he would expect top executives to face an upper limit on remuneration that is at least 25% below what it is at the moment. "

Source: http://www.breakingnews.ie/ireland/mhsnqlgbcwid/

Meanwhile, according to http://www.rte.ie/news/2009/0204/useconomy.html

"Obama to set cap on executive pay
Wednesday, 4 February 2009 13:52
US President Barack Obama is to set a $500,000 annual compensation cap for executives at companies getting taxpayer bailouts.

The move is part of a wider process to clamp down on excessive corporate pay."

Surely Mr Cowen could be more emphatic rather than merely express that he would like to see directors' fees cut by 25%?

All Clowen does is shout and bray, like a castratred jackass, across the floor at Kenny and Gilmore about how he is in charge and will run things his way.

It looks like he is in charge of jack**** and he couldn't even run a p*** up in his brother's pub in Offaly.

He "would like" or "he expects" directors and top executives to take 25% cut.
I believe from rough calculations (somebody will probably correct me on this) a 25% cut of the top executives of AIB, BOI, Nationwide would bring their salaries down below 2 million but still well above 1 million ?

FFS if the Irish state (i.e. us taxpayers) are giving these banks recapitalisation money to stay afloat he, as our leader (I know a loose use of the term but he still is officially) can tell the executives to go f off out the door and hire a whole new team at the same rates as Obama is bringing in for Wall Street executives.

Has the man any balls ?
Mary Harney has probably bigger ones, I will give her that.
He made jokes about Kenny at last election how he was inept and not half the man of bertie etc, but dear God has anyone shown him videos of his own performances.

While he is at it fire the top level financial regulator staff and bring in foreign staff with no ties to Irish financial institutions.

Absolutely no golden parachutes. Nothing, zilt, zero they are being FIRED.

Then maybe the foreign markets would see we are clearing out the dead wood and serious about getting our act together.
I live in hope but I don't really see anything but the IMF coming in. :mad: