Former managing director of Allied Irish Banks, Colm Doherty, received a pay package of more than €3 million last year after stepping down in November as a condition of the State’s second bailout of the bank.
Mr Doherty received a salary of €432,000 for the period from the start of the year to early November. Under his contract, he was entitled to a termination payment of €707,000 in lieu of a year’s notice after the board of AIB was told to terminate his contract at the direction of the then minister for finance Brian Lenihan.
Mr Doherty received a further cash payment of about €2 million in lieu of a contribution to his pension. This was made under an existing agreement which entitled him to a taxable cash payment after the government capped the pensions of company executives at €5 million in 2006.
He received the payments under a contract agreed when he was promoted in November 2009 to the role of managing director, replacing chief executive Eugene Sheehy.
The Department of Finance signed off on his pay, under which Mr Doherty took a salary cut from €633,000 to €500,000 a year, the Government cap for top bankers.
Minister for Finance Michael Noonan said the issue of bankers pay has to be re-examined.