DONEGAL TD’S ANGER AT IRISH LIFE BOSS’S €586,000-A-YEAR SALARY

first_imgSinn Féin finance spokesperson, Pearse Doherty TD, has tonight revealed that the CEO of Irish Life, Kevin Murphy received a remuneration package that breached the government’s own pay cap.In response to a parliamentary question the Minister for Finance, Michael Noonan TD, revealed that the Irish Life CEO receives a “salary of €500,000 and other remuneration of €86,000”.Parliamentary question responses also revealed the total value of former AIB CEO Eugene Sheehy’s pension pot, is estimated at €10.5m. Deputy Doherty said: “Earlier this year the government used €1.3bn of taxpayer’s money to purchase Irish Life from a company the state already owned.“Today it is revealed that the CEO of Irish Life received a total pay packet of €586,000. This is in excess of the government’s own pay cap of €500,000. The question also revealed that Murphy will retire shortly on an annual pension of €305,000.“This is totally unacceptable. In fact it is obscene. At a time when ordinary people are put to the pin of their collar, it is not acceptable that the heads of failed banks continue to receive lavish salaries and expense accounts paid for by the taxpayer.“Parliamentary question responses today also revealed that the CEO of Permanent TSB gets €400,000 per year, while a total of 21 senior executives in Irish Life and PTSB receive pay packages over €200,000. “A further parliamentary question reply estimated that the total value the pension pot of former AIB CEO Eugene Sheehy could amount to €10.5m.“Despite this, the Minister for Finance has not written to any of these individuals asking them to take a voluntary pay cut.“The Minister for Finance has been reviewing remuneration in Irish banks, Twelve months on and no action has been taken to curb these excessive pay and expenses packages.“Across the country ordinary people are worried if they will be able to pay their mortgage at the end of the month or their next electricity or gas bill. They are facing into a budget in which the government looks set cut their incomes even further.“Yet in the parallel universe that it the upper echelons of banks and other financial institutions bailed out by the taxpayer, top bosses continue to get boom time pay and perks. There is simply no justification for this. The Minister needs to conclude his review and outline to the public what action he intends to take.” QUESTIONS AND ANSWERS BELOW:DÁIL QUESTIONNO 217, 218 and 219To ask the Minister for Finance the salary paid to the Chief Executive Officer of Irish Life; if he will provide a listing and quantification of any additional benefits paid; and in respect of any expenses allowance to confirm if such allowances are paid only in respect of vouched and receipted expenditure.. – Pearse Doherty.* For WRITTEN answer on Tuesday, 13th November, 2012.Ref No: 49505/12To ask the Minister for Finance if the Chief Executive Officer of Irish Life is employed on a temporary contract; if so, the date on which this contract was entered into; the termination date of this contract and to quantify any termination payments provided for under the contract..– Pearse Doherty.* For WRITTEN answer on Tuesday, 13th November, 2012.Ref No: 49506/12To ask the Minister for Finance if the Chief Executive Officer of Irish Life is employed on a continuing or permanent contract; and if so, to quantify any termination payments provided for under the contract..– Pearse Doherty.* For WRITTEN answer on Tuesday, 13th November, 2012.Ref No: 49507/12REPLYMinister for Finance ( Mr Noonan) : I propose to answer questions 217, 218 and 219 together.The salary and benefits of the Chief Executive Officer (CEO) were fully disclosed on Page 62 of the 2011 Annual Report of Irish Life & Permanent Group Holdings plc which is available at www.permanenttsbgroup.ie. In summary the CEO of Irish Life & Permanent who has been CEO of Irish Life since it’s separation in June 2012, received a salary in 2011 of €500,000 and other remuneration of €86,000.I have been informed that the policy of Irish Life is that CEO expenses are only paid in respect of vouched expenditure and that this is provided for in the CEO’s contract. I have also been informed that the CEO has a permanent contract and that no termination payments are provided for in that contract.The Deputy should also be aware that the current CEO will be retiring shortly and that a search for a new CEO has been ongoing, internally and externally, for several months. Irish Life & Permanent Group Holdings made an announcement in this regard on 26 June 2012.DÁIL QUESTIONNO 208To ask the Minister for Finance in respect of the €1.1billion top-up made by Allied Irish Banks to the group pension scheme in August 2012, if he will estimate the capital value needed by a pension fund in order to make an annual payment of €529,000 to a scheme member, as is reportedly the case with annual payments to the former chief executive officer of AIB, Mr Eugene Sheehy..– Pearse Doherty.* For WRITTEN answer on Tuesday, 13th November, 2012.Ref No: 49494/12REPLYMinister for Finance ( Mr Noonan) : The Deputy will be aware that the transfer of assets to the pension fund earlier this year was undertaken in order to facilitate the early retirement component of the voluntary severance program of the bank. Had the transfer of assets not taken place, the early retirement component of the voluntary severance could not have proceeded as it would have required a cash contribution from the bank. The voluntary severance scheme in the bank overall is expected to result in annual savings to AIB in excess of €200m which is a critical component of AIB’s return to long term viability. It is highly likely, that in the absence of the early retirement scheme, the bank would have been unable to achieve its target staff departure figures on a voluntary basis which would likely have required the need for significant numbers of compulsory redundancies.AIB informs me that for an employee retiring at age 60 with 40 years pensionable service and an annual pension of €529,000, AIB estimates that the capital value accumulated in a fund to provide this annual figure would be approx. €10.5m.DÁIL QUESTIONNO 211To ask the Minister for Finance if he will provide in tabular form, with respect to the Permanent TSB, the number of the staff whose annual salary at 31 December 2011 fell in the following bands €400,000 and above, €300,000 to €399,999, €200,000 to €299,999 and €150,000 to €199,999..– Pearse Doherty.* For WRITTEN answer on Tuesday, 13th November, 2012.Ref No: 49499/12REPLYMinister for Finance ( Mr Noonan) : Permanent TSB has provided me with the following information as at 31 December 2011 in a slightly restricted form to that requested to ensure compliance with legal requirements to staff under Data Protection laws:Basic Salary € Number of Employees *150,000 – 199,999 10200,000 – 399,999 9400,000+ 0* This includes employees who subsequently TUPE’d to Permanent TSB from Irish Life during 2012.Permanent TSB has made additional appointments to its management team since 31 December 2011 as part of its management renewal program including the appointment of a new CEO whose salary has been disclosed in PQ 49501/12 as €400,000 per annum. As he was not employed by the bank in December 2011 he is not included in the table.DÁIL QUESTIONNO 212To ask the Minister for Finance if he will provide in tabular form, with respect to the Irish Life, the number of the staff whose annual salary at 31 December 2011 fell in the following bands €400,000 and above, €300,000 to €399,999, €200,000 to €299,999 and €150,000 to €199,999..– Pearse Doherty.* For WRITTEN answer on Tuesday, 13th November, 2012.Ref No: 49500/12REPLYMinister for Finance ( Mr Noonan) : Irish Life has provided me with the following information as at 31 December 2011 in a slightly restricted form to that requested to ensure compliance with legal requirements to staff under Data Protection laws:Basic Salary € Number of Employees150,000 – 199,999 27200,000 – 399,999 9400,000+ 2DONEGAL TD’S ANGER AT IRISH LIFE BOSS’S €586,000-A-YEAR SALARY was last modified: November 13th, 2012 by BrendaShare this:Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window)Click to share on LinkedIn (Opens in new window)Click to share on Reddit (Opens in new window)Click to share on Pocket (Opens in new window)Click to share on Telegram (Opens in new window)Click to share on WhatsApp (Opens in new window)Click to share on Skype (Opens in new window)Click to print (Opens in new window)Tags:000-A-YEAR SALARYDONEGAL TD’S ANGER AT IRISH LIFE BOSS’S €586last_img

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