Sir, – Your editorial of September 28th argues that the Government needs to show “flexibility and ingenuity” in handling AIB’s request to breach the €500,000 pay cap for the position of chief executive.
The flexibility and ingenuity required is not dissimilar to that which emerged in relation to the remuneration of judges who are at the top of the 34 OECD member states’ judiciary pay league and those public servants whose remuneration is extravagant in the context of the productivity of the organisations they lead, the nation’s capacity to pay them and when compared to the remuneration levels of counterpart roles elsewhere.
The remuneration of the governor of the Central Bank was reduced in February 2010 by 20 per cent and that of the deputy governor/head of financial regulation by 15 per cent to €423,761. The governor also took a further voluntary 20 per cent pay reduction last year, reducing his total annual pay to €276,342. How could there be any plausible rationale to breach the salary cap on the top job in AIB by 38 per cent? If pay cutbacks are to be applied at senior levels in the State sector, surely these must be applied consistently to demonstrate equity, fair play and unity of purpose. The sacrifices of all those enduring pay cuts should not be disregarded. – Yours, etc,
Sir, – If the events of the last decade are proof of anything it is that banking executives are not worth the money they are paid. Grossly overcompensated chief executives have wrecked banks across the world, particularly so in Ireland. If a salary of €500,000 is not enough to attract the likes of these to run AIB, the country would be better off for it. – Yours, etc,
Sir, – In your editorial you allude to the “right” banker in the context of AIB’s new chief executive. I would like to see some discussion about the new banking approach that we expect from the right banker. Surely we are not going to invest in banking as usual? That’s what got us to where we are today. The “what you can get away with” approach in lieu of responsibility is just not worth the money. – Yours, etc,