The Minister for Finance has said the next chief of AIB may be paid more than 500,000, reports the Irish Times this morning.
Although he said it is unlikely, Michael Noonan has not completely ruled out the possibility that the bank may be allowed to exceed its salary cap of €500,000 as it is having difficulties appointing its next chief executive.
“As has been stated publicly by the Taoiseach, a compelling case would have to be made for the Government to consider setting aside this cap taking account of the recent decision on the pay ceilings for CEOs of semi-States and senior public sector posts,” Noonan said in response to a parliamentary question by TD Billy Kelleher.
“However, it would be the intention of the Government that the cap of €500,000 would be honoured.”
The bank has already told Noonan that it does not believe it will be able to get a strong candidate by paying them less than €500k.
Currently, AIB executive chairman David Hodgkinson combines the positions of chairman and CEO. Noonan said this does not offer good corporate governance practice.