Bailed-out AIB to pay top staff €40m bonus

Constantin Gurdgiev just tweeted that "AIB bonuses for 2008 is roughly the amount of cuts to the blind and disabled supports in Budget 2011. Another complete failure by the Gov!"

Although even if the bonuses were not paid it doesnt mean that any budget cut backs would be reversed.
 
In a move certain to spark fury, the bank has decided about 2,400 staff must be paid the bonuses for legal reasons after several of them took court action.
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So what should the bank and its owners do?

Should they ignore the legal advice and fight it in the courts and waste further taxpayers' money on losing a case?

I heard Roisin Shortall(?) on Morning Ireland being highly critical of this payment to overpaid bankers. There are 2,400 staff involved in this. Presumably most of these are union members. Why does she not call on the trade unions to get their members to give up this bonus?
 
Brendan Burgess: Should they ignore the legal advice and fight it in the courts and waste further taxpayers' money on losing a case?
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no they shouldn't. they got themselves into this mess and need to stick it out. however in the future whoever they employ, they have to ensure that there are no bonus promises especially not signed into contracts and therefore are not leaving themselves open for court cases. ridiculous!

i could start with morals that those who actually tried the court route should have a conscious and not demand a bonus. after all it is a "bonus" and not their salary being cut. but morals get us nowhere with these people. if i read it correctly in the indo this morning, those bonuses date back to 2008 when the troubles with AIB started so they can all be really proud of their achievements.

then again, those bonuses will be taxed so some of it comes back into the system right? :(
 
Why don't the government introduce a tax of 99% on Banker's Bonuses. They are passing loads of legislation at the moment for the budget, one more piece shouldn't be too much trouble.
 
If the bonuses were for Bank staff that had no influence in the business side - e.g. bank staff - would there be objections?
 
The Govt/State are the effective owners of these institutions now. You would imagine that pressure could be applied to these staff who are demanding their bonuses e.g. Of course we will pay you - if your legal challenge holds up. However we are going to be shedding a lot of staff in the immediate future. So what was your name again ??
 
According to rumours there a few people in Anglo considering Court Action over unpaid bonuses!!

I can see why AIB have to pay but am very surprised that it is so high. I know from other Irish banks, some people got bonuses because of performance targets been met and they were contractually entitled to the bonus but not to the same extent as AIB. Their employment contracts would make interesting reading.
 
If people are suitably outraged by this behaviour and are account holders in AIB, should they not vote with their feet?

Might send a suitable message to the 2,400 seemingly litigious 'executives' in the bank...

Thankfully I have not, nor never have, had a penny in that institution.
 
Brendan Burgess said:
So what should the bank and its owners do?

Should they ignore the legal advice and fight it in the courts and waste further taxpayers' money on losing a case?

I heard Roisin Shortall(?) on Morning Ireland being highly critical of this payment to overpaid bankers. There are 2,400 staff involved in this. Presumably most of these are union members. Why does she not call on the trade unions to get their members to give up this bonus?
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Here's what they should do.

The Govt should set up a brand new Ltd company caled AIB2 Ltd. Sell their shares in AIB to this new company and transfer ALL business to the new company. Make every single staff member redundant paying only statutory redundancy and force them all the reapply for their jobs on brand new contracts, refusing to employ those who threatened to take them to court. They should then put AIB into liquidation, thus ensuring that the bonuses can't be paid.

I doubt the legal costs would be that significant in the greater scheme of things if the State fought the employees looking for the bonuses. 1 or 2 cases will set the precedent. Also it will cost the AIB staff in legal fees as well AFAIK.

The State has my permission to fight them all the way to Europe as far as I'm concerned.
 
I doubt very much if many of these people getting the bonus are members of the IBOA.
 
DB74 said:
Here's what they should do.

The Govt should set up a brand new Ltd company caled AIB2 Ltd. Sell their shares in AIB to this new company and transfer ALL business to the new company. Make every single staff member redundant paying only statutory redundancy and force them all the reapply for their jobs on brand new contracts, refusing to employ those who threatened to take them to court. They should then put AIB into liquidation, thus ensuring that the bonuses can't be paid.

I doubt the legal costs would be that significant in the greater scheme of things if the State fought the employees looking for the bonuses. 1 or 2 cases will set the precedent. Also it will cost the AIB staff in legal fees as well AFAIK.

The State has my permission to fight them all the way to Europe as far as I'm concerned.
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The High Court has ordered AIB to pay the bonuses. Are you saying they should be in comtempt of court?
 
Sunny said:
The High Court has ordered AIB to pay the bonuses. Are you saying they should be in comtempt of court?
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Playing devil's advocate here but what would happen if AIB were held in contempt of court? What's the punishment - is it a fine? Is there a maximum fine? Will the fine be less than €40m?
 
Thanks for that. Bit strange that the Indo didn't mention that (or maybe not)
 
NorfBank said:
Playing devil's advocate here but what would happen if AIB were held in contempt of court? What's the punishment - is it a fine? Is there a maximum fine? Will the fine be less than €40m?
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Have no idea to be honest. Don't think you can just be fined for compempt but then continue to ignore the original judgement. Just guessing though.
 
if you are raging about this and are an AIB customer you should move your account immediately
 
NorfBank said:
Playing devil's advocate here but what would happen if AIB were held in contempt of court? What's the punishment - is it a fine? Is there a maximum fine? Will the fine be less than €40m?
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worst case, the judge could imprison the company directors.
 
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