Allied Irish Banks to pay €40m in bonuses
Bonuses awarded despite bank on the verge of receiving another emergency bailout from the Irish gove
Dublin-based Allied Irish Banks (AIB) is planning to give out €40m (£34m), to 2,400 bankers in bonuses - payouts for deals drawn up in 2008 -next week, even as the group is on the verge of receiving another emergency bailout from the Irish government.
The bank which is currently 19 per cent owned by the Irish government, having received a bailout of €3.5bn from tax payers when it came close to collapsing in 2008 following the global recession, had been blocked from awarding bonuses under bailout stipulations.
However, following legal action by several employees over the bonus deferral, AIB has decided to honour the old agreements and pay bonuses to most employees, "as per the contractual entitlements arising from the business's performance in 2008."
The bank has however; put a hold on what are called "discretionary bonuses."
AIB's shares have lost 60 per cent of their value over the year.