State-owned AIB has admitted that a €1.1bn bailout of its pension scheme is helping to pay retired executives as much as €500,000 a year.
The bank’s chief executive, David Duffy, confirmed that some of the €1bn of assets transferred from its balance sheet to its pension fund is helping to pay the “super-pensions” of former senior managers.
These include a €500,000 annual pension reportedly being paid to former chief executive Eugene Sheehy, who was in charge at the time of the infamous bank guarantee in 2008.
His successor, Colm Doherty, who has also left the bank, will get €300,000 a year when he turns 65.
AIB plugged a hole in its pension scheme in August by handing €1.1bn of loan assets to its pension pot.
Source and full story: Irish Independent, 1 Nov 2012