Bank salaries

[csirl]

I read Shane Ross's book "the Bankers". In it he states that the average salary of a Bank of Ireland employee is €99,000.

BOI has a huge workforce and very few are top level executives earning millions. I would assume that 90% are ordinary officials working in branches. I also assume that these salaries are the norm in the banking sector.

With people complaining about PS salaries and more recently about blue collar semi state workers averaging 60-70k per annum, how come they havent been complaining about bank salaries? Why are we giving the banks billions so that they can pay people in largely mid level admin jobs twice the going rate?

 

[Sunny]

Looking at simple average salaries is pointless especially in banking because of the high outliers.

I will give you an idea of where we are in banking. I am currently looking to hire someone for an specialised admin type role. I received in 7 cv's from an agency yesterday. People with 15-16 years experience are looking for the salary that someone with 1 years experience would have been looking for 18 months ago. They wouldn't even enter the tax net with what they are looking for. Of course there was the young guy with 1 years experience looking for more than the people with 15-16 years! I am tempted to interview him to give him a wake up call!

 

[Kine]

€99k?

I can't see how that is correct at all. Really can't.

 

[TarfHead]

Looking at simple average salaries is pointless especially in banking because of the high outliers.

Brian Goggin received, according to the media, a salary of 1.9m. In the same year, an official in a branch would have earned less than 30K.

Average salary €965,000 ?

Senator Ross - one good reason for the abolition of the Senate.

.. how come they havent been complaining about bank salaries? Why are we giving the banks billions so that they can pay people in largely mid level admin jobs twice the going rate?

If the banks were paying €7bn a year in salaries, then a 50% cut would make sense, if only to avoid the Government bail-out of €3.5bn. But they don't, so any cut in bank salaries would not yield a meaningful amount with respect to the capital injections they have received, and may need in the future. So, it would be a gesture, just to appease the Beardies.

 

[csirl]

BOI have just under 16k employees. If the average salary is 99k, then the wage bill is in excess of €1.5bn. Even a few dozen people earning a million euro would have minimal impact on the the average salary.

Cut it by 1/3 and you save 0.5bn. Repeat the same for the other banks, and already the savings are in the billions.

Shane Ross got his figures from the annual accounts - dividing the total salaries paid by the number of employees.

 

[Deiseblue]

Brian Goggin received, according to the media, a salary of 1.9m. In the same year, an official in a branch would have earned less than 30K.

Average salary €965,000 ?

Senator Ross - one good reason for the abolition of the Senate.



If the banks were paying €7bn a year in salaries, then a 50% cut would make sense, if only to avoid the Government bail-out of €3.5bn. But they don't, so any cut in bank salaries would not yield a meaningful amount with respect to the capital injections they have received, and may need in the future. So, it would be a gesture, just to appease the Beardies.

Any cut in Bank salaries would certainly not appease the Unions as the Banks themselves are hugely unionised !

 

[TarfHead]

Shane Ross got his figures from the annual accounts - dividing the total salaries paid by the number of employees.

I assume the good Senator is using a 'high-water mark' figure for bank salaries. Figures for this year will be less due to the new realities.

Even if it were possible to generate a saving of 0.5bn in staff costs, the same figure saved by the Government would not affect the measures announced in last week's Budget.

The bail-out of the banks is not coming out of Government current expenditure, e.g. public sector staff costs.

 

[Sunny]

BOI have just under 16k employees. If the average salary is 99k, then the wage bill is in excess of €1.5bn. Even a few dozen people earning a million euro would have minimal impact on the the average salary.

Cut it by 1/3 and you save 0.5bn. Repeat the same for the other banks, and already the savings are in the billions.

Shane Ross got his figures from the annual accounts - dividing the total salaries paid by the number of employees.

Hardly great analytical work and he would want to redo his maths. Wages and salaries at year end March 09 were €849m. There were 15,868 employees. That works out on average of €53,503. Again, it is a worthless figure but still a lot less than what Ross suggests.

 

[TarfHead]

Hardly great analytical work and he would want to redo his maths. Wages and salaries at year end March 09 were €849m. There were 15,868 employees. That works out on average of €53,503. Again, it is a worthless figure but still a lot less than what Ross suggests.

You beat me to it !

The figures I dug out are different (Staff costs 1.14bn, 15,500 staff) = 73,548, but Staff costs include pension contributions so that 73548 figure is not anyone's salary.

So bank staff took a 25% cut in salary !

 

[Sunny]

You beat me to it !

The figures I dug out are different (Staff costs 1.14bn, 15,500 staff) = 73,548, but Staff costs include pension contributions so that 73548 figure is not anyone's salary.

So bank staff took a 25% cut in salary !

Also includes employers PRSI which shouldn't really be included. Also as you say, if you include pensions, you should do that for the public sector as well. See what the average figure is then.

 

[Deiseblue]

After raising the question of pay cuts in the Semi State sector there are strong rumours that the Government are now going to target Government Guaranteed Institutions.

In particular Bank salaries are to be targeted , in addition AIB and BOI are currently endeavouring to raise employee contributions to their pension schemes.
A mediator has recommended that those members of the AIB DB scheme who are not currently required to contribute to the scheme should agree to contribute 5% of pensionable pay in future.

The fly in the ointment is that these deductions cannot be made unless members authorise them ( under the payment of wages act 1991 ) and therefore those who do not authorise this contribution will continue to have their pension serviced by the Bank but with a reduced annual accrual rate of 1/75th as opposed to the current 1/60th accrual rate.

Perhaps it is no wonder that Larry Broderick was so agitated recently as the question of cutting Bank salaries is sure to meet with huge public approbation !
Thankfully as with the Semi States the Banks are also hugely unionised.

 

[Sunny]

After raising the question of pay cuts in the Semi State sector there are strong rumours that the Government are now going to target Government Guaranteed Institutions.

In particular Bank salaries are to be targeted , in addition AIB and BOI are currently endeavouring to raise employee contributions to their pension schemes.
A mediator has recommended that those members of the AIB DB scheme who are not currently required to contribute to the scheme should agree to contribute 5% of pensionable pay in future.

The fly in the ointment is that these deductions cannot be made unless members authorise them ( under the payment of wages act 1991 ) and therefore those who do not authorise this contribution will continue to have their pension serviced by the Bank but with a reduced annual accrual rate of 1/75th as opposed to the current 1/60th accrual rate.

Perhaps it is no wonder that Larry Broderick was so agitated recently as the question of cutting Bank salaries is sure to meet with huge public approbation !
Thankfully as with the Semi States the Banks are also hugely unionised.

Yes, thankfully.