THE CHIEF executive of the State’s biggest bank, Allied Irish Banks (AIB), took a 45 per cent cut in his annual remuneration package to €1.152 million last year, according to a company filing to the US Securities and Exchange Commission (SEC).
Eugene Sheehy received a salary of €905,000, benefits of €40,000 and €207,000 in pension contributions for 2008. Mr Sheehy’s remuneration package compared with €2.1 million he was paid the previous year. He waived 10 per cent of his salary from October last year, amounting to €23,210 and increased this to 25 per cent from January, representing a reduction of €232,100 for the year.
The bank will hold an extraordinary general meeting on May 13th, coinciding with its annual general meeting, to seek shareholder approval for the Government’s plan to recapitalise the bank with €3.5 billion of taxpayers’ funds.
The head of AIB’s capital markets division, Colm Doherty, was the second highest paid executive at the bank after Mr Sheehy, according to the SEC filing. Mr Doherty was paid €822,000, down 50 per cent from the €1.663 million he was paid in 2007.
No bonuses were paid to the bank’s directors or senior executives for 2008.
The head of the bank’s Irish operations, Donal Forde, was the third highest paid executive. He received a total of €776,000, a 44 per cent cut on the €1.394 million he received the previous year.
AIB finance director John O’Donnell received total pay of €658,000, down 48 per cent on his pay of €1.273 million in 2007.
The bank’s chairman Dermot Gleeson received fees of €475,000 in 2008, the same amount he received the previous year. The bank said Mr Gleeson waived 8.7 per cent of his annual fee from January 2008, amounting to €45,000. He increased this reduction to 10 per cent last January and to 25 per cent last month, bringing the cut in his annual pay to €130,000. Thirteen non-executive directors shared fees of €1.5 million last year. The previous year 16 directors shared the same amount. Non-executive directors waived 10 per cent of their annual fees from December and increased this to 25 per cent last month.
AIB directors lost €15.2 million on their shares in the bank during 2008 as a result of the 89 per cent drop in the value of the stock.
The SEC filing shows that 15 AIB directors (with their spouses and children) held 1.4 million shares at the end of last year, which were valued at €2.4 million, compared with 1.1 million a year earlier, valued at €17.6 million.
Mr Sheehy has said his pay would remain at €690,000 for each of his remaining four years at AIB.
