Madam, – In your report headlined “Bankers might not be entitled to packages, says Shatter” (April 21st) there is a reference to my stating that banking executives may not be entitled to contractually based retirement packages because their banks are effectively in liquidation. At no stage in my reported press conference did I make any reference to “banks being effectively in liquidation”.
I did say that the revelation of the €3 million retirement package paid to former AIB chief executive Colm Doherty in late 2010 “defies belief at a time when the banks were on public life support because of bad management, flawed judgment and indefensible practices”. I also stated that it was unacceptable that bank executives who have “contributed to the destruction of the banking sector and caused taxpayers to pay enormous sums of money should believe that in order to move on to other pastures they have some entitlement to enormous reward”.
At a later stage in my press conference I stated that “employment contracts are two way processes”. Under such contracts “someone is employed to carry out a function. If you don’t carry out that function competently; if the organisation or the company you are working for is rendered incapable of fulfilling its objectives; if essentially it is put into liquidation or is only surviving on the support of monies coming from elsewhere, there is a serious issue as to whether you are in such fundamental breach of contract as to be not entitled to any reward in circumstances in which you are requested to leave”.
Clearly, it is the case that at the time when Mr Doherty’s compensation package was agreed and implemented our two major banks were dependent on monies injected by the State. Since then further funds have been made available and arrangements to restructure the banks have been announced by the Government. At no stage did I say that these banks either were or are “effectively in liquidation.” – Yours, etc,