FORMER AIB managing director Colm Doherty received €3.4 million from the bank for 2010 but a reduction in his annual pension entitlements from the normal retirement date reduced his stated net remuneration for the year to €2.7 million.

The bank’s annual report – published on AIB’s website last night – showed that Mr Doherty received a salary of €432,000 covering the period from the start of the year to November 10th, 2010 when he left the bank after agreeing to resign the previous September as a condition of AIB’s second bailout.

In addition to this, he received €1.966 million in lieu of pension benefits payable following the termination of his employment and €50,000 in taxable benefits.

He also received a payment of €953,000 for payment in lieu of 12 months’ notice covering his salary and taxable benefits as well as annual leave due but not taken and a pension allowance for the 12-month notice period.

The cap on Mr Doherty’s pension reduced the annual entitlement at normal retirement date from €303,000 to €203,000.

This reduced the company’s pension fund liability by €1.744 million, which was a benefit to the bank.

However, the bank made a once-off contribution of €1.043 million to the pension fund to fund the scheme’s increased liabilities from the payment of his annual pension entitlement from a date earlier than his normal retirement date.

The report shows that the executive and non-executive directors of AIB received a total of €4.325 million in 2010, compared with 4.084 million the previous year.