Pay rises and bonuses at bailed out bank

Given that Anglo Irish Bank went cap-in-hand to the government for €1.5bn shortly before Christmas, you might have thought it wasn't the best place to work. However, staff at the bank have received both pay rises and bonuses going into the new year.

The Irish Independent reports that junior level staff at AIB have been awarded pay rises, in contrast to most other areas of Irish financial services. Middle management have been awarded "performance-related" bonuses, according to a spokesperson, though these are thought to be lower than last year.

The spokesperson said: "Some junior level staff were awarded inflation-linked pay increases. Not all staff will be getting it. Middle management and above will receive no pay increases."

On 22 December last year, Anglo Irish announced an initial investment of €1.5bn in preference shares from the government, representing a 75% stake, to reinforce its core capital position. Allied Irish Bank and Bank of Ireland also received €2bn each as part of a €5.5bn state bailout.

An anonymous Anglo banker quoted in the Sunday Independent reckons the move to award bonuses could be less about being a benevolent boss, and more a cushion to an up-coming blow.

"If we're going to lose our jobs, we will need the money," they said.

The latest salary survey by Irish recruiters Premier Group suggests salaries in Irish financial sector are largely static - even in hot areas like risk and compliance.

Similarly, bonus expectations are reduced, reckons Estelle Davies, manager of the financial services division at Brightwater.

"Bonuses have in the past been typically 8-20% of salary for those with up to 5 years' experience," she says. "For those with upwards of 5 years' experience, the typical bonus would be 20-35% and senior level executives would get more. However, this may decrease in 2009."