Allied Irish Banks (AIB) cut the pay of chief executive Eugene Sheehy by 45 per cent last year.
Sheehy’s total compensation fell to €1.15 million from €2.1 million a year earlier, according to a filing by AIB to the Securities and Exchange Commission yesterday evening.
The bank didn’t pay any bonuses to directors in 2008, the filing says. Sheehy (54) faces a further cut in his compensation this year as the Government last week said it plans to cap salaries for CEOs at banks receiving state aid at €500,000 a year.
In February, Allied Irish agreed to a €3.5 billion injection by the Government as it grapples with rising loan losses.
AIB’s full-year profit fell 61 per cent in 2008 as loan losses rose to €1.8 billion. Loan loss provisions may climb to as much as €4 billion this year, the bank said earlier this month.
Bloomberg