New from Department of Finance

12-3-2013 Appearance of Secretary General, Mr John Moran before the Public Accounts Committee on 7th March 2013
12-3-2013 Publication of the Mercer Review of Remuneration Practices and Frameworks at the Covered Institutions
12-3-2013 Presentation on Mercer Review of Remuneration Practices and Frameworks at the Covered Institutions
12-3-2013 Mercer Review of Remuneration Practices and Frameworks at the Covered Institutions

9 thoughts on “New from Department of Finance”

  1. Page 44 and page 45 of covered institutions report is an eye-opener.
    Lots of people about ~25% earning less than €30,000 pa. I would not have expected that.

    It must be tough on them to see the banks bust by a bunch of overpaid incompetents at the ‘upper eschelons’.

    As far as I can see a total of ten ways (options) are listed as a means of reducing salary. Who would have thought it. A bit like the olde song ’50 ways to leave your lover’.
    But no recommendation.

  2. @Joseph Ryan

    Call centre, branch and admin staff (i.e. those who actually deal with customers and provide the services) have always been poorly paid in financial services companies. There’s usually quite a big gap between them and e.g. IT, actuarial/finance, legal, ‘business change’, etc.

    Then of course there are the legions of middle and senior management who simply can’t be bought for less than 30k and I’ve no doubt have very necessary functions and don’t simply make an industry out of just sitting there all day going to meetings, sending out emails, making sure they are on every sign-off matrix going and constantly trying to get monkeys off their back and on to anothers (?)… these are terribly important people.

    Then there’s all the HR people who are terribly important people too and worth far more than the call centre, branch and admin staff (“because they’re worth it”) and really add value to everything they touch…….

    The alternative theory is that all those on under 30k are the Indian staff who are currently being trained up to take over all the other jobs. Head count reduced to 25%, greater productivity (if you actually believe the blurb companies like TCS etc. put out), a compliant workforce and all of them on under €30K p.a. ….. it sounds like most CEO’s wet dreams.

  3. @PR Guy

    Any thoughts on the number of staff with less than 2 years service
    AIB 2210 : 18.5% of total staff
    BOI 1077: 9.0% of total staff
    PTSB 368: 16.4% of total staff

    Source: Page 40, Covered banks report

    The number and % of new recruits sound very high!

  4. @Joseph Ryan – they do sound high. I don’t know for sure but might it be something to do with arrears and arrears processing/restructuring? i.e. having to pull in extra staff to do it as existing staff have their normal ‘day job’ to do. Mind you….. ’empire building’ never seems to go away, whether covered or not 😉

    Did I spot something earlier about the CB forcing banks in Ireland to write down the value of mortgages in arrears? Who’s going to fork out for the next bailout then? Er, I mean who’s going to help them raise additional funding to support their capital ratios… Never mind, I’m sure we will get it all back when we flog them off…. yeah, right.

    I’ve just seen the easiest winner of the Queen Mother Champion Chase ever in Sprinter Sacre. A class act. Anyone got a tip for the bumper? Not Willie Mullins again surely?

  5. @tullmcadoo

    When I saw the Mullins/Walsh horse Briar Hill was 25/1 I thought to myself, “that’s good value.”

    I am now laughing all the way to the bank 🙂

  6. Good for you. Just shows you markets are not efficient. The old rule of thumb used say that you should always back the Mullins outsider. It looks to be as true for Willie as it was for Paddy.

  7. Why would AIB have 2516 staff outside of Ireland?
    I thought the only significant Non Irish operation was in the UK. Is that operation that big?

    Covered Bank Report Page 40.

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