Sunday, June 26, 2011

Ridiculous "Golden Goodbyes" at Permanent TSB and Irish Nationwide

As a long-time observer and researcher of CEO compensation issues, I am used to seeing fat sums offered to corporate executives in the form of golden parachutes. But this report about "golden goodbyes" in the Irish Independent made my jaw drop:
[More] than 500 staff at Government-guaranteed Permanent TSB are to get a bonanza pay-off ...[this] is also available to the 245 Irish Nationwide Building Society staff who earlier this year transferred into Permanent TSB as part of a forced merger of Nationwide with the Anglo Irish zombie bank.

The €38m package will see staff walk away with an average pay-off of €120,000 -- but some managers will be in line for pay-offs of more than €300,000.

This is simply unbelievable. There is an argument to be made for CEO golden parachutes based on expertise, risk exposure etc., when they have performed adequately, but paying such sums to what seem like mid-tier staff in a bank that would have gone bust but for the bail-out seems ridiculously excessive. This is clearly pay for non-performance and failure and a complete waste of taxpayer money. The minister must intervene and stop this nonsense.