€500,000 Banker Pay Cap must stay in place

Labour Finance spokesperson Joan Burton has said that half a million euro is more than enough pay, and that the bankers pay cap must stay in place.

Deputy Burton said:

“We have just passed the 10 year guarantee of the blanket bank guarantee and the disastrous policies bankers pursued that did huge damage to Ireland and other countries.

“As we saw before the crash, lavish pay is no guarantee of executive success but the lobbying and media campaign to lift the pay cap is fully underway, and no doubt will continue for months to come.

“The Minister has commissioned a review that is expected to be completed by the end of year. Currently salaries are capped at €500,000 and bonuses are banned.

“So far the Minister has held his nerve, but he must hear loud and clear that it is unacceptable for state owned banks to start paying out bonuses and paying salaries of more than half a million while we are in the middle of a housing crisis brought on by the actions of banks.

“As a state owned bank, it is essential that AIB and PTSB lead by example and practice pay restraint.

“Further, Ireland should be in no rush to sell down our shares in AIB, and as the bank is now consistently profitable, the dividends will act as an important source of revenue for years to come.

“For ten years Irish people have lived with the consequences of reckless bankers. We can’t afford to go back to those days again.”