Allied Irish asks bosses who led to ruin to give back pensions

Tim Wallace
Follow Tim
ALLIED IRISH Bank (AIB) wrote to former directors yesterday to ask for some of their pensions back, after mounting public anger at the scale of payouts at the bailed-out bank.

The institution collapsed in the financial crisis, leading to a bailout in 2009 and nationalisation in 2010 – part of a wave of bailouts that led to the government running out of cash and the state needing a bailout from the Eurozone and International Monetary Fund.

Since then the government has implemented tough fiscal programmes and gradually brought its devastated finances back on track.

Last week the bank revealed it had transferred €1.1bn (£882m) of loans to its pension fund, reviving concerns over its ongoing payments to former senior staff.

Current chief executive David Duffy is arguing it would be fair if the 15 former directors gave the money back.

“On a moral basis we believe that there is a judgment that some individuals can make a contribution,” he told the Financial Times.

Former chief executive Eugene Sheehy reportedly receives a pension of €500,000 per year, while ex-managing director Colm Doherty is set to receive €300,000 when he reaches the retirement age.

Related articles