AIB - are they for real?

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AIB tried not to pay the bonuses - the employees took them to court and won - AIB now have to pay the bonuses. Hardly the bank's fault?
 
Maybe those executives should take a long, hard look at themselves in the mirror.
 
They could forfeit the bonuses in view of everything that is going on. I would suspect that they suffer from the "I deserve it" culture.
 
liaconn said:
Maybe those executives should take a long, hard look at themselves in the mirror.
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+1

Their sense of entitlement is staggering. Maybe get Wikileaks on the job and have their names and addresses published ;) ?
 
I always thought a bonus was based on performance, how or how can the executives be legally entitled to the bonuses.
 
2400 "executives"?

Love to now what the typical role of someone getting this bonus is
 
Niall M said:
I always thought a bonus was based on performance, how or how can the executives be legally entitled to the bonuses.
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As far as I know it is performance related to earlier years. Also many of these bonuses are structured on individual or team performance, not company. There are parts of all the banks still making money and meeting targets. Not defending it, just saying that the bank can do very little. The High Court has ordered them to pay. You would hope the guilt might stop one or two from taking it but the fact that they took legal action in the first place shows that is unlikely.

I hear that the same situation has arisen in Anglo but no-one has resorted to the Courts. Yet!

The term executive is used loosely. Most of them are just ordinary employees.
 
Niall M said:
I always thought a bonus was based on performance, how or how can the executives be legally entitled to the bonuses.
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Legally: because their contracts would be based on their individual performance/unit/department's performance. If they made their targets within that, they're entitled to the bonus. I say legally, not morally.

Playing devil's advocate though, they're obviously entitled because some/most/all generated revenue for the bank. Think of it this way: how much revenue does it take to make €40m worth of bonuses? I'd say considerably more than the €40m, at a rough guess of some banking bonuses it's 10-20% of the revenue generated. If they hadn't gained this revenue how much worse would AIB be?
 
And yet the insufferable windbag Eddie Hobbs continues to whine about a few civil servants getting a half day off at christmas...
 
Surely though they cannot have reached targets, as their profits/returns must surely have been overstated.
 
Niall M said:
Surely though they cannot have reached targets, as their profits/returns must surely have been overstated.
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Not really. I could work in FX and make millions for the bank. Bad property loans have nothing to do with me. Like I say, certain parts of the banks are making money.
 
TarfHead said:
Their sense of entitlement is staggering.
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I think this comment could be leveled at many more than just the banking 'execs'...

...and at both ends of the employment/earnings scale!

Its time to start considering the term 'privilege' rather than 'right' when discussing what one feels one is due.
 
Niall M said:
Surely though they cannot have reached targets, as their profits/returns must surely have been overstated.
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Not necessarily. Take, as an example, the people who work in the department which promotes and administers bank accounts for school kids.

No toxic debts there, no big mortgages.

Just people working away on the job they were assigned to do.

I doubt that it is the department in question but it shows that there are areas in AIB completely untouched by the crisis.

Should those people forego their bonus in spite of doing everything asked of them?
 
terrontress said:
Not necessarily. Take, as an example, the people who work in the department which promotes and administers bank accounts for school kids.

No toxic debts there, no big mortgages.

Just people working away on the job they were assigned to do.

I doubt that it is the department in question but it shows that there are areas in AIB completely untouched by the crisis.

Should those people forego their bonus in spite of doing everything asked of them?[/QUOTE]

yep, take a construction company. Could you imagine a bonus being paid to accounts staff for producing management accounts on time even though the construction company is going to the wall!
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Niall M said:
yep, take a construction company. Could you imagine a bonus being paid to accounts staff for producing management accounts on time even though the construction company is going to the wall!
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The problem is that the individual worked in a profitable side of the business (ask JP Mcmanus how profitable FX is), he brought in the money as set by his employers and he was contractually obliged to a bonus on that basis. He isn't sat in administration doing his job on time. His bonus is linked to his own/his unit's performance and not the overall bank.

While morally we can question his decision to persue this so vigorously, it's hardly the bank's fault the High Court said they must honour the contract.

How many of us would be prepared to lose €161K we had earned and were contractually obliged to?
 
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