BANK OF Ireland chief executive Brian Goggin took a 25 per cent pay cut in the year to March 31st, 2008, as his annual earnings fell by €1 million to €3 million.

Mr Goggin was paid a total of €2.972 million, down from €3.998 million a year earlier. His performance bonus fell to €323,000 from €2 million, as the bank's earnings per share grew by 4 per cent, compared with an increase of 22 per cent the previous year.

The bank's share price has fallen 35 per cent in the year to date and 57 per cent since this time last year. It closed at €6.61 yesterday. This compares with €15.30 a year ago.

A large portion of Mr Goggin's pay, up to €1.025 million, comprised a taxable cash payment made due to the capping of executive pensions in the 2006 budget.

His remuneration also includes a deferred bonus payment of €841,000 for the bank's €145 million cost-saving programme, which was completed in March.

His salary rose by 5 per cent, or €55,000, to €1.155 million.

Mr Goggin earned more than his counterpart at AIB, Eugene Sheehy, who was paid €2.1 million for 2007, 14 per cent less than the previous year.

Mr Goggin's pay cut means he is no longer the best-paid Irish bank chief executive, according to the banks' most recent annual reports. Anglo Irish Bank chief executive David Drumm was the highest earner, receiving €3.274 million for the year ended September 2007, though his pay is for a period covering only two months of the current financial crisis.

Bank of Ireland finance director John O'Donovan received €1.466 million for the year to March 31st, 2008, a drop of 7 per cent on the previous year.