Tuesday, March 12 17:10:13
AIB today said it welcomed the publication of the Mercer Review and remuneration in covered banks, adding that it has already cut staffing costs by around 31pc since 2008.
On the conclusion of the AIB severance programme in 2014, total remuneration costs across the organisation, including business disposals, are expected to have decreased by close to 50pc from 2008 levels, a bank statement said.
Total remuneration has fallen around 76pc for the Chief Executive and by around 64pc for Senior Executives since 2008, it said.
The spokesman said that the bank remains committed to not just cutting payroll costs but also to its severance programme.
"A key component of this will continue to be the requirement to reduce staff costs. This includes a decrease in total staff remuneration and, more pertinently from a cost perspective, ongoing plans to significantly reduce the number of people working at the bank through a severance programme. This programme is expected on completion to achieve in excess of c.E200m in annual cost savings," AIB said.
Commenting on the review, AIB's Chairman, David Hodgkinson said on behalf of the Board of Directors that: "It is evident from the report, that there has been a significant reduction in remuneration at the bank since 2008. The Board believes that this is absolutely appropriate given the financial position of the bank and the level of State support received. However, the Board also fully agrees that further work is required to reduce overall staff costs to a level more reflective of the bank's current and long term operating position".