AIB asks Ireland to raise pay cap

City A.M. Reporter
IRELAND’S finance minister Michael Noonan is considering a request from state-controlled Allied Irish Banks (AIB) to appoint a new chief executive with a salary above the current cap of €500,000 (£436,626), a government spokesman said yesterday.

Michael McGrath, the finance spokesman for the opposition Fianna Fail’s party, said: “News that the government is even considering the AIB request to sanction a salary in excess of €500,000 will be greeted with shock and disbelief.”

It is understood that two men are in the running for the top job: Brendan McDonagh, a former head of HSBC’s North American operations and David Duffy, formerly of ING Barings and Standard Bank.

AIB declined to comment.