I didnt know that was the package? I heard off a friend in there that it was 5 weeks for 1st two yrs and 1 week after that for rest of service, so four weeks is very good in this "climate"..
Sunny - the executives will get the nice pay off, where the likes of back office people who dont have any involvment in the lending process etc will suffer.........................
This is going to sound heartless and inappropriate, but it's all about contracts and golden handshakes are a necessary evil for executives.
Taking on the role of a senior exec, director etc is a huge risk. It's much easier to get rid of a director than an employee. Your position is vulnerable to any single downturn in figures, profits, performance, etc. This is well recognised and in a sense you put your head on the block (rightly so) taking that role.
For years it was actually harder to get a mortgage as a "director" because the job security was so weak.
So the contracts tend to have an incentive in not just the pay, but if you are fired, you get a nice parachute. It's the only way to get people to fill the jobs and its a gamble on both sides.
Not making excuses for their performance or the size of the compensation, but in many cases those packages were agreed a long time ago and wouldn't have been too extreme from the norm in a similar operation/size.
To be fair, that might be true for ordinary businesses but is certainly not the case in Irish banks. Irish bank executives were well overpaid relative to the size of their organisations compared to other Countries (I know the same can be said about most people). There is also no evidence that executives of large Irish companies expecially the banks faced the consequences for failures on their watch (apart from Mike Snoden for checking out an escort agency online). How many AIB executives were held accountable for the Rusnack affair or the overcharging etc. Golden handshakes and paracute payments just encourage people to not do their jobs. At the end of the day, what do Anglo executives care about the cost to the taxpayer because of their decisions when they are off on pensions of over €500k a year.
Executives should be paid a high basic salary (mainly performance related) but these clauses in the contracts with regard pension payments and pay offs in the case of dismissal need to end. Thats what the Government and regulator need to clamp down on. Not the fact that someone can earn €1.5 million a year. Good luck to him/her if they do their jobs.
Couldn't agree more in the effectiveness of controlling the executives, but the contracts would have been the contracts.
I suppose in a similar sense, any objections to the "perks" of the PS (sorry to bring it back, but there is some hypocrasy in demonising one section and not the other) is more against the contract and the enforcement or management of that. Is it the executives fault they were never punished?
But the realities of a senior executive is to shoulder the burden of complete operations. As such their contracts offer not just generous pay, bonuses and other perks, but also termination terms. The boards never enforced this, heck who would when the shares were doing so well? And neither did the regulator.
I'll be honest and say that if I were offered such a pay and termination package I'd probably break a finger trying to get my pen out too quickly.
Personally I dont buy the "its not the fault of the ordinary bank employee" line. This is akin to the "I was only following orders" defence at the Nurenberg Trials.
Very poor redundancy package when compared to the recent Ulster Bank package which was 7.25 weeks per yer of service capped at 3 years salary plus a retraining grant of euro 9,280 whereas the Anglo package seems to be 4 weeks per year of service capped at 1 year.Lots of job losses in the bank I work in.... actually horrible time in here since last June... All the big fish have been sorted with big pay offs though and all the little goldfish like me where all basically told apply for another job in here or get the hell out. People treated like dogs.........
Also did you see in Anglo Irish the **** redundancy package they are being "offered"... Sure its all compulsory in the end like
I agree but seems like everyone was getting a bonus of some kind so nobody wanted to speak against the goose with the golden eggs.
I am probably going off-topic here, but if I remember correctly Soden got a very good settlement from BOI at the time?There is also no evidence that executives of large Irish companies expecially the banks faced the consequences for failures on their watch (apart from Mike Snoden for checking out an escort agency online).
Yep, I did make an complaint to the CEO, which was pretty much ignored.If someone tried to mis-sell you a financial product, I presume you reported them?
it amazes me how the country seems to think the bankers are responsible for so much damage to the Irish economy.
While the regulators aren't blameless, they were operating within the legal environment set by the Government, and the whole ethos of 'light touch regulation', where it was deemed unthinkable for a mere civil servant to tell one of the captains of industry what to do.it amazes me how the country seems to think the bankers are responsible for so much damage to the Irish economy.
are we forgetting about the Central Bank and Financial Regulator who failed in the roles as regulatory bodies of the Irish Banking System, not to mention the Department of Finance who are responsible for the Central Bank and Fin. Regulator.
i cant see how there will not be big layoffs down the track in aib and boi.
And to address the OP, if you're working in a bank then the unions are blasting the executives and top decision makers. They certainly aren't out to get the ordinary staff like the cashier in the local branch.
I don't know that I believe this. Many frontline staff are being harassed on the back of campaigns like this - remember what happened in Irish Permanent due to the media - it wasn't managers that were spat at. Did posters here not state they were moving funds from AIB recently because lower paid staff received a small increase.
Did any bankers turn up at the march last week? From what I say there was public anger and chanting against them.
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