THE four executive directors of Bank of Ireland shared total remuneration of £1,234,000 for the year to end March, an average of £308,500 each.

The bank's annual report issued yesterday revealed that its mortgage subsidiary in Britain, BIM, is currently defending two legal actions taken by the receiver and funding banks of The Housing Corporation. Now in receivership, The Housing Corporation was a small niche lender in the British mortgage market in the 1980s.

A Bank of Ireland spokesman refused to comment further on the actions yesterday. These are being "strenuously defended" according to the annual report.

"The bank, having been advised, considers that the potential liabilities are not likely to have a significant effect on the financial position of the bank," it stated.

The four executive directors Mr Pat Molloy, Mr Maurice Keane, Mr Michael Meagher and Mr Pat McDowell shared salaries of £755,000, an average of £188,750 each. The total cost of salaries for executive directors was £620,000 in the previous year, an average of £187,870 each.

Their performance bonuses rose from a total of £290,000 to £308,000, an average of £77,000 each. Other remuneration included the cash value of shares received under employee share schemes, an average of £14,000 each benefits such as company cars and loans at preferential staff rates, an average of £9,500 each and pension contributions, an average of £19,250 for each director.

The 6.2 per cent rise in the performance bonuses paid by Bank of Ireland reflects the 14 per cent rise in pre-tax profits at the group to £363.7 million for the year to end March. Performance bonuses can range between zero and 40 per cent of basic salary at the bank.

Bank of Ireland recently amended its share option scheme for senior executives to make the exercise of options granted in the future conditional on growth in earnings per share. Cumulative growth in EPS of at least 2 per cent per annum more than the rise in the consumer price index either over a three year or a six year period will be required.

The governor of the bank, Mr Howard Kilroy, and the deputy governor, Mr Laurence Crowley, shared total salaries of £161,000, up from £155,000 in the previous year and an average of £80,500 each. Non-executive directors shared fees of £152,000, down from £166,000, reflecting the retirement of Mr David Kennedy during the year, and an average payment of £20,937 to each director.

The chief executive, Mr Pat Molloy, got 100,000 new share options last year to bring his total options to 598,082. He would have to pay 3321/2p per share to exercise his new options. At yesterday's closing price he would make a paper profit of £110,500 if he exercised his options.

If he acquired all the shares over which he has options at the weighted average exercise price of 199p per share, his paper profit would be £1,459,320. Mr Michael Meagher exercised 108,934 share options paying 135.8p per share to increase his holding in the group from 193,144 to 303,401 shares.