Fury over BoI chief's €1.5m pension bonus
Issued : 17 April 2010
Evening Herald
THE Government was under increasing pressure today to justify the €1.5m pension top-up given to Bank of Ireland chief executive Richie Boucher.
The move will allow Mr Boucher to retire in fours years' time at the age of 55 with an annual pension of €367,570.
Public fury over the massive pension boost has led to demands that the Government explain the payment amid accusations that it had undermined the salary cap imposed on bank chiefs last year.
The news came as ordinary BoI staff were being asked to ballot on plans to cut their own pensions.
Union leaders and opposition parties last night described the payment to Mr Boucher as "offensive". Mr Boucher took over the helm of the bank in May of last year.
"We're shocked this has come at a time when staff are being asked to agree to changes to their own pension schemes" said Irish Bank Officials' Association general secretary Larry Broderick.
Up to 18,000 members of various BoI schemes will be hit by the bank's attempts to plug a €1.6bn deficit in its defined-benefit pensions, which entitle staff to receive up to two-thirds of their final salary on retirement.
Mr Broderick said he would be calling on Finance Minister Brian Lenihan to "justify this payment" for Mr Boucher.
Fine Gael finance spokesman Richard Bruton said: "It is offensive to ordinary people who are now having to pick up the pieces for their incompetence to see these types of payments."
Labour Party finance spokeswoman Joan Burton described the payment as "two fingers" to the taxpayer.
The Department of Finance has refused to comment.
The Government has put a €500,000 salary cap on chief executives of State-guaranteed banks but Mr Boucher is contractually entitled to a €220,000 pension cash allowance which he voluntarily cut to €123,000, the bank said.
The bank explained the top-up saying there was a shortfall in his pension fund and it was obliged to boost it with the €1.5m payment.
Clodagh Sheehy
