Allied Irish Bank cancels bonus payouts

Allied Irish Bank (AIB) will not pay out bonuses to its top staff.

The decision came after a letter from Ireland’s finance minister Brian Lenihan warned the bank that state support was conditional on the non-payment of the bonuses.

The board of Allied Irish Banks met on the evening of 13 December to consider the letter. The board had previously received legal advice that it was obliged to pay these bonuses. The letter from the minister conveys a decision by him which overtakes this obligation.

Accordingly, the board has decided not to pay the bonuses.

David Hodgkinson, executive chairman of AIB, said: “The board of AIB very much welcomes the actions of the minister and is relieved to be in a position not to pay these bonuses.

“We are determined to position the bank to play a full role in the recovery and development of the Irish economy. In doing so, we are committed to treating our customers, staff, the taxpayer and the public in a fair and transparent manner.”

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