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Seanad
‹ Order of Business

State influence over bank pay

Summary

Senators debate whether the State should oppose Bank of Ireland pay packages, with Senator Coghlan explaining that its 15% holding and non-binding remuneration guidelines limit the Minister’s influence.

Senator Darragh O'Brien's calls, so ably supported by Senator Labhrás Ó Murchú, were understandable and I am sure they consider them good politics.

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Paddy Burke An Cathaoirleach Fine Gael

Does the Senator have a question for the Leader?

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Of course. As Senator Darragh O'Brien pointed out, the State's equity in Bank of Ireland is 15%. It used to own more, but millions of euro have been repaid. It is the bank's stated intention to repay the remainder in the shortest possible time.

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I know all of that. It is not the point.

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There are State guidelines on bankers' remuneration.

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Which are exceeded by the chief executive.

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Unfortunately, they do not enjoy the force of law.

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This is especially so if one is going to be outgunned by the shareholders, that is, if one owns 15% and is up against the other 85% at an annual general meeting, AGM. I do not know the answer, but I suspect that the Minister probably believes-----

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He has given up.

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-----it is best to abstain in all circumstances because the proxies will be stacked against him.

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Paddy Burke An Cathaoirleach Fine Gael

Is the Senator asking or answering a question for the Leader?

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It is about symbolism.

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I do not have a question as such. I wanted to point out-----

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People are playing at the gates. They are waiting for the Senator.

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Due to my macular edema, I have a slight difficulty in reading a word that I wrote in my notes, but Senator Darragh O'Brien gets the gist of what I am saying and of the position in law.

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I am still none the wiser, but I thank the Senator for trying to help.

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I will speak with the Senator later.

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