Concerns raised over AIB executive pay disparity

Documents show senior Department of Finance officials highlighted concerns from the AIB board that the disparity in pay between the bank's top executives and other companies created a flight risk of senior bankers.

Despite the comments, Minister for Finance Paschal Donohoe will vote against the introduction of a share option scheme at AIB's annual general meeting today -writes rte.ie

One of the resolutions at the meeting will be the introduction of a share options scheme, but it will be blocked by a vote by Minister Donohoe who holds 71% of shares.

However, he has committed to review restrictions on executive pay.

Documents released to RTÉ News under Freedom of Information show that Department of Finance officials commented on the absence of an incentive scheme to retain top bankers.

They pointed out the board of the bank had highlighted that without an incentive scheme the bank would be restricted from aligning pay packages to the achievement of goals.

Documents show the issue was also raised by shareholders when the bank rejoined the stock market last year.

One official commented that investors recognised the sensitivity of the subject and felt it would be dealt with after the bank's flotation.

AIB's non-performing loans down 10% in first quarter

AIB has said that it remains on track to meet its medium term targets and that it is performing well.

In a trading update issued ahead of its AGM today, the bank said it had cut the level of non-performing loans by 10%, while its lending rose by 18%.

AIB's non-performing loans in the first quarter decreased by 10% to €9.2 billion from €10.2 billion in December 2017 and it said the "normalisation" of these loans is a key focus and a strategic priority for it.

The bank also said it was continuing to make progress on its tracker mortgage review and said that 96% of identified affected customers have now received payment.

The remaining identified customers will be paid in the second quarter of this year, it added.

AIB noted that new lending drawdowns in the first three months of the year were "strong".

Lending in Ireland rose by 18%, but while new lending in the UK fell, the bank said its UK loan book remained stable.

Read more news of Dublin on our site.

rte.ie
IRELAND BUSINESS AIB PASCHALDONOHOE
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