Cowen pledges bank executive pay cuts

TAOISEACH BRIAN Cowen said he expected executive salaries and directors’ fees would be reduced by 25 per cent in a bank recapitalisation programme.

He said the Government would seek to protect any taxpayer investment in respect of any decisions taken based on the policies already outlined.

“With regard to executive remuneration, a committee will report to the relevant Minister in due course on executive remuneration in the banking sector,” he added.

“If there were to be recapitalisation, I would expect the directors’ fees to be cut by 25 per cent, and I would expect that when they appoint their top executives, there would be an upper limit on remuneration. I would expect that whatever it is at the moment would be cut by at least 25 per cent as well.”

He said that some had spoken of banks being bailed out and billions having been spent on them, but this had not yet happened.

“What is envisaged is a support to the banking system on behalf of the hundreds of thousands of businesses and the many hundreds of thousands of people depending on their employment,” said Mr Cowen. “We must have a functioning banking system to provide lines of credit to Irish business.”

Sinn Féin Dáil leader Caoimhghín Ó Caoláin said that the Government, on behalf of the public purse, must be quite firm in its approach. There should be no room for those who wanted independent and individual advantage.

Mr Cowen said the purpose at all times had been how to ensure they maintained confidence and stability in the banking system while simultaneously protecting the taxpayers’ interest.

The portrayal of the issue in any other way – as a bailout or other irresponsible comment – did nothing to bring confidence to the economy or address the issues that must and would be addressed, he said.