THE Irish language and the setting of directors' pay were the two issues which most exercised share holders at Bank of Ireland's annual general meeting yesterday.

The meeting, which at one point looked like it would be the shortest in history, eventually lingered for the traditional hour and a half, during which the governor. Mr Howard Kilroy, strove to answer shareholders' questions.

"Why is there no trace of our national language in the annual report?" one shareholder began, urging the bank to provide a section of the report in Irish for shareholders. This was greeted by loud applause from the more than 200 shareholders and Mr Kilroy said the bank would consider the suggestion.

Another shareholder enquired about who sets the remuneration and fees of the bank's directors, both executive and non-executive. According to its annual report, the bank's executive directors were paid an average remuneration of Pounds 331,579 each in the year to the end of March last, an increase of 7.5 per cent on the previous year.

Mr Kilroy explained that the various directors' remuneration packages were set by specific remuneration committees, with those whose payments were being considered having no role in the process. "The executive directors decide on the fees paid to the non-executives and vice versa." according to the governor.

But one shareholder, Mr Niall Duggan, questioned whether this arrangement presented a potential conflict of interest for those directors. "Surely they have a vested interest in looking kindly on the remuneration to be paid to those who will subsequently decide how they will be paid? Is there not a better way of doing this?" he asked.

Mr Kilroy stressed that a different strategy might be worth pursing if shareholders felt that the bank's non-executive directors were seen as being paid "excessively" compared with their counterparts in other Irish publicly quoted companies. "I think you will find that our fees are probably on the low side," the governor added.

Mr Kilroy also explained the payment of Pounds 56,000 by the bank in the last financial year to newly appointed director Dr Mary Redmond. This money was paid for professional legal fees for Dr Redmond who is a specialist in employment law. "When Dr Redmond was asked to join the board it was known that there was some fee work involved and it was thought unreasonable to take it away, according to Mr Kilroy. No other directors received any fees beyond those specified in the report, he said.

Bank loans to its directors have also fallen substantially in the last 12 months, he said, with a substantial amount of the money borrowed having been paid back.