DUBLIN - Bank of Ireland has announced the allocation of stock awards totaling €240,000 to key executives as part of an expanded fixed-share allowance program. This move comes as the bank seeks to enhance its competitive stance in the global marketplace for talent.
The latest stock filing revealed that seven members of the group executive committee, including Retail Ireland chief Susan Russell, collectively received 27,995 shares valued at €240,337. These shares come with a three-year holding requirement, ensuring the executives' interests are aligned with those of the shareholders over a longer term.
This initiative follows a broader strategy set in motion after the government divested its shareholding in the bank. With salary caps above €500,000 lifted and bonuses up to €20,000 (EUR1 = USD1.0787) reinstated, albeit with higher performance bonuses taxed at 89% under Finance Act 2011 provisions, the bank has been able to introduce more attractive compensation packages. These include variable pay based on staff's performance in 2023 and additional health benefits for employees across the Republic and Northern Ireland.
Looking ahead to 2024, Bank of Ireland plans to continue this trend by making similar stock allocations on a quarterly basis. Top executives like Group Chief Myles O’Grady and CFO Mark Spain are slated to receive non-performance-based shares equivalent to half their base salaries. This approach is seen as a creative way to navigate around the government-imposed restrictions on bonuses.
A spokesperson highlighted that these steps are integral to broader initiatives aimed at creating a competitive environment conducive to attracting and retaining top talent.
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