Investigation exposes Bank of Ireland bonus payments
An investigation by the Department of Finance into bonuses paid to executives at Bank of Ireland has found that the bank misled the State and the taxpayer.
It has emerged Bank of Ireland paid €4.3m in bonuses to staff since the introduction of the bank guarantee in 2008.
Another €600,000 will be paid in bonuses this year; another €200,000 in 2012.
The bank also said that €11m may have to be paid to 250 workers this year under certain bonus categories.
Bank of Ireland is now to pay €2m by way of compensation to the Exchequer for providing "misleading" information.
The investigation was launched last December when it emerged bonuses had been paid to senior executives at the bank, despite the fact that management had told the Finance Minister Brian Lenihan otherwise.
Commenting on the findings, the outgoing Finance Minister Brian Lenihan and the Department say they are dissatisfied with the approach of the bank to the investigation process and its definition of performance related bonus, which it says is inappropriate from a bank that has been bailed out by the taxpayer.
