It has emerged that Bank of Ireland chief executive Richie Boucher received a one-off payment of €1.5 million to his pension last year.
According to the bank’s Annual Report, the contribution arose as a result of a shortfall in Mr Boucher’s pension fund.
The banks said that Mr Boucher’s contract allow provides for an option that allows him to retire at the age of 55 on a pension of 59 per cent of his salary.
Meanwhile, Bank of Ireland said it expects to sell several of its businesses divisions and impose limits on payouts to shareholders in order to gain European Commission approval for its state aid and restructuring plans.
In a statement today, the bank said it expected to dispose of its life and pensions business New Ireland Assurance, ICS Building Society and Bank of Ireland Asset Management.
The three businesses were likely to generate total underlying income of about €200 million and an underlying operating profit of about €90 million for the nine months to the end of December this year, the bank said.
The lender said it anticipated a decision regarding the approval of its proposed measures would be taken by the European Commission by mid-2010.
“Therefore, at this stage, there can be no certainty as to the outcome of the State aid proceedings and the content of the final EU Restructuring Plan,” it said.
The bank's shares rose more than 4 per cent or 7 cents to €1.79 today on the back of the announcement.
The asset sales will not have a direct impact on the bank's capital base but clarity on what it needs to sell, together with last month's launch of the National Asset Management Agency (Nama), will allow it to hone its plans for raising capital, it said.
"Events are now much more in the Bank of Ireland's control as to how we go about strengthening our capital," chief executive Richie Boucher said.
The bank, in which the Government has a 16 per cent stake plus an entitlement to another 25 per cent via preference shares, remains in talks with investment banks on raising capital, Mr Boucher said, though he would not say when it would make a move.
The bank will need €2.7 billion of fresh capital to make up for losses on loans transferred to Nama, and meet new capital ratios demanded by the financial regulator.
At the end of March, the bank said it could raise from private sources much of the capital needed, potentially becoming the only member of the Nama scheme to escape a fresh bailout.
Other anticipated disposals were of Bank of Ireland Asset Management Ltd, which had €25 billion under management, and ICS Building Society, which had mortgage loans of approximately €7 billion - of which the bank would sell a minimum of €2 billion - and deposits of €4 billion.
In addition, the bank expects to sell its FCE foreign exchange business and its stakes in Paul Capital (asset management) and the Irish Credit Bureau.
"It's not the worst news," said Kevin McConnell at brokerage Bloxham. "The positive surprise is that they are managing to keep the (deal with the) UK Post Office in place."
Bank of Ireland has a joint venture with the UK Post Office. It reiterated it was winding down its UK intermediary-sourced mortgage portfolio and also certain discontinued international corporate lending portfolios.
It said it would attempt to accelerate the wind-down of these portfolios by selling them, but would not be obliged to sell at less than book value.
Additional reporting by PA