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Irish Life CEO breaches pay cap

13 November, 2012 - by Pearse Doherty TD

Sinn Féin finance spokesperson, Pearse Doherty TD, has tonight revealed that the CEO of Irish Life, Kevin Murphy received a remuneration package that breached the government’s own pay cap.
In response to a parliamentary question the Minister for Finance, Michael Noonan TD, revealed that the Irish Life CEO receives a “salary of €500,000 and other remuneration of €86,000”. Parliamentary question responses also revealed the total value of former AIB CEO Eugene Sheehy's pension pot, is estimated at €10.5m.

Deputy Doherty said:
“Earlier this year the government used €1.3bn of taxpayer’s money to purchase Irish Life from a company the state already owned.
“Today it is revealed that the CEO of Irish Life received a total pay packet of €586,000. This is in excess of the government’s own pay cap of €500,000. The question also revealed that Murphy will retire shortly on an annual pension of €305,000.
“This is totally unacceptable. In fact it is obscene. At a time when ordinary people are put to the pin of their collar, it is not acceptable that the heads of failed banks continue to receive lavish salaries and expense accounts paid for by the taxpayer.
“Parliamentary question responses today also revealed that the CEO of Permanent TSB gets €400,000 per year, while a total of 21 senior executives in Irish Life and PTSB receive pay packages over €200,000.
“A further parliamentary question reply estimated that the total value the pension pot of former AIB CEO Eugene Sheehy could amount to €10.5m.
“Despite this, the Minister for Finance has not written to any of these individuals asking them to take a voluntary pay cut.
“The Minister for Finance has been reviewing remuneration in Irish banks, Twelve months on and no action has been taken to curb these excessive pay and expenses packages.
“Across the country ordinary people are worried if they will be able to pay their mortgage at the end of the month or their next electricity or gas bill. They are facing into a budget in which the government looks set cut their incomes even further.
“Yet in the parallel universe that it the upper echelons of banks and other financial institutions bailed out by the taxpayer, top bosses continue to get boom time pay and perks. There is simply no justification for this. The Minister needs to conclude his review and outline to the public what action he intends to take.” ENDS

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