AIB: Pay will be slashed 50% by end of 2014, compared to boom levels
AIB has said that pay across the bank will have fallen by about 50% from 2008 levels once a severance programme and on-going cost-cutting measures take full effect.
The bank said its overall pay bill had already fallen by 31% since 2008, with the chief executive's pay down 76% and senior executives taking a 64% drop in pay, the latter including an average 33% reduction in base salary.
The bank was reacting to the
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The Mercer report found that pay levels for top bank bosses lagged behind that of their counterparts in large companies, while the pay of workers at lower grades was in line with or ahead of staff in other firms.
AIB said in a statement this evening that the total number of executives employed at the bank had decreased by about 47% since 2008, and added that pay was down at all levels of the organisation, including:
- Executives down c.35%;
- Senior managers down c.18%;
- Assistant manager/senior specialist down 6%
- Senior clerical/specialist roles down 9%;
- Clerical roles down 4%.
AIB’s chairman David Hodgkinson said: "It is evident from the report that there has been a significant reduction in remuneration at the bank since 2008. The board believes that this is absolutely appropriate given the financial position of the bank and the level of State support received.
"However, the board also fully agrees that further work is required to reduce overall staff costs to a level more reflective of the bank’s current and long-term operating position."
