MT BANK, in which AIB has a stake, will not pay cash bonuses to senior executives this year because of compensation limits imposed by the US Treasury on bailed-out banks.

MT received $600 million (€430 million) in 2008 through the Troubled Asset Relief Program (Tarp). In order to comply with compensation restrictions, the bank decided not to award bonuses to executives including chairman and chief executive Robert G Wilmers, chief financial officer René F Jones, and president Mark J Czarnecki. Mr Wilmers could earn up to $2.1 million this year, compared to total compensation of $2.65 million in 2009. Mr Jones’s maximum compensation for 2010 has been set at $1.2 million.

AIB has a 24 per cent interest in MT. The bank operates about 800 branches and is based in Buffalo, New York. – (Additional reporting: Bloomberg)