Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Lenihan intervenes to stop AIB bonus payments

  • 13-12-2010 11:24pm
    #1
    ninjasurfer1
    Registered Users, Registered Users 2 Posts: 485 ✭✭


    http://www.rte.ie/news/2010/1213/harneym.html
    AIB says its board has decided not to pay the controversial €40m in bonuses to some of its senior staff members.

    The move follows a letter from Minister for Finance Brian Lenihan to the bank's board.

    The Minister said the payment of financial support needed by the bank from the State would be conditional on the non-payment of bonuses 'no matter when they may have been earned'.

    Mr Lenihan said: 'I appreciate that AIB was not in a position to put up a sworn defence in the High Court proceedings and that the Executive Chairman and the Board have acted with complete propriety in this matter.'

    The bank said tonight its legal advice had been that it was obliged to pay the bonuses but that the Minister's intervention overtook that obligation.

    It said: 'The bank very much appreciates the support it has received to date from the State and the Irish taxpayers and acknowledges that it will continue to rely on this support for some time to come.'

    AIB Executive Chairman David Hodgkinson said the bank was 'relieved' to be in a position not to pay the bonuses.

    Head of Corporate Services at AIB, Alan Kelly, said that the board of the bank had been embarrassed at the prospect of paying the bonuses.

    The bank, which has received €3.5bn from the Government in assistance, was due to pay the bonuses for 2008 as a result of a High Court ruling earlier this year.

    A staff member had taken the legal action to force the bank to pay him his bonus.

    Earlier, Taoiseach Brian Cowen said the Government was looking at all its options to see if anything could be done to stop the payment of the bonuses.

    Mr Cowen said the matter would be discussed at a Cabinet meeting tomorrow. He said he understands the serious concerns people have about the bonuses.

    His comments came after two of his senior ministers criticised the payments.


    Minister for Health Mary Harney said it would have been better if AIB had contested the legal action.

    She also highlighted the amount of that which had been put into the bank.

    Ms Harney said: 'Clearly the bank's ability to pay is very much in doubt given the state of the bank and the huge amount of capital the Exchequer, on behalf of the taxpayer, have had to invest in the bank.

    'At a time when the Exchequer is putting a huge amount of capital into AIB, everyone has to be mindful of their responsibilities, and that includes management, the board and the Government.'

    Minister for the Environment and Green Party leader John Gormley said the payment of the bonuses was 'insensitive and inappropriate'.

    Fine Gael deputy leader James Reilly said the Minister had 'caved in' to pressure from the public and the Opposition.

    He said: 'Brian Lenihan has finally responded to public outrage and Opposition pressure on the obscenity of AIB bonuses.'

    Now if only he would bow to public pressure and push for an election!!
    Failed to load the poll.


Advertisement