Looking at simple average salaries is pointless especially in banking because of the high outliers.
.. 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?
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.
Shane Ross got his figures from the annual accounts - dividing the total salaries paid by the number of employees.
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.
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!
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.
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