An Irish banker working abroad thinking of returning home, he encountered an insurmountable obstacle: his payment package.
“There was a chance I was looking forward to a lot,” he said, requesting anonymity. But he would have to pay “very hard” and “this is one of the reasons I rejected him”.
Since a major euro bankruptcy more than a decade ago, three Irish-owned banks with highways have been forced by law to force payments of managers at € 500,000. Also, rules prevent 23,000 employees, from juniors to adults, from receiving bonuses or other benefits in addition to health insurance and child care.
Payment bankers complain that they only earn half a million dollars a year will not cause grief among workers who lost their jobs during the Covid-19 epidemic.
But the Irish banking agency says the problems resulting from having one of the EU’s stricter laws were “harder than ever”, in the middle class and the C-suite, and could jeopardize the ability of the AIB, Bank of Ireland and Permanent TSB to innovate and deliver. for a government that still has high prices.
“One of the most powerful skills acquisitions,” said Brian Hayes, head of the Banking and Payments Federation Ireland published a report and EY highlighting this as a major problem. “It’s like brainwashing, it’s very stressful [banking] of the model. ”
Within the industry, the message is clear: look around.
Myles O’Grady, Boi chief financial officer, this week has been the last to do so. The announcement of the departure of Musgrave Group, which has 11 facilities including the main SuperValu supermarket, comes two years after its director, Andrew Keating, left the construction company CRH.
Cut the numbers and it is easy to see why. A drawing was made € 468,000 in his final year at the bank before becoming director of the group at CRH. The general manager of the company earned $ 3.2m last year. O’Brien’s new salary was unknown but those in the companies said it was a good idea for him to receive more than € 531,000 he took home, including his pension, last year.
“I just put one CFO at € 1.5m and the chief of staff at € 1m,” said the headmaster, noting that the latter had gone to the bank.
Not all have left the bank altogether. Some are attracted to well-received foreign banks that do not have the same limits, which the BoI chief Francesca McDonagh said puts foreign banks at a disadvantage.
With the exception of what has been done in the past, like the same McDonagh when he joined the BoI from HSBC in 2017, but people who are well versed in the process say it is a necessity and include reassuring the Irish finance ministry that you have explored the world to find other options. This is part of the reason, according to European Banking Authority, Ireland was home to only 34 banks, both Irish and international lenders, who paid more than € 1m in 2019, against 3,519 in the UK.
Indeed, in 2018, when the chief financial officer and head of the AIB resigned two months after each other – the first to a Portuguese lender, the last to a shareholder in Ireland – chairman Richard Pym complained that his bank had remained “.a arena ”.
“If you tell the COO to the AIB or the Bank of Ireland that they can earn twice as much as the COO of a foreign bank in Dublin – that’s when you lose people,” the central bank said.
For employers who want top executives to fill their outgoing shoes, pay restrictions, over-the-counter bank robberies and inspections that can take several months of exposure, could mean less, not more diverse, pool.
“Customers are really looking for what they want but it can be like looking for Formula One drivers in a parking lot full of skateboards,” said the chief headhunter, who said the “pay” offers were completely restrictive and unreasonable “for companies.
According to Hayes, the problem is not just high and middle positions among graduates but also among graduates, many of whom migrate to their employers financially. Ireland not only collaborates with major US companies, such as Amazon, Apple and Google, but also fintechs like Stripe.
Hayes says the policy could backfire: the government still has 12% of the BoI, 71% of the AIB and 75% of the PTSB, which is why competition increases the government’s economy. “The future sustainability, efficiency and health of banks depend on their ability to make money and create skills,” he said.
Indeed, according to a BPFI and EY report, a fifth of those registered in the three commercial banks over the past three years have been using technology and digital ranking while the participating banks are trying to follow their nimbler fintech counterparts.
This is expected to continue, but whatever the agency does, the government should not back down.
“[Bank bosses] being expelled credit unions, What does he expect to receive? ”Mocked the former employee, saying he had saved up the loan.
And with the rest of Sinn Féin’s party voting in Ireland for 2025, senior officials see little change.
“It’s getting worse soon if Sinn Féin comes in,” the headhunter said. “They’ll take care of it a little bit.”
Additional reports of Laura Noonan in London