In the Dail yesterday, the Minister for Finance Michael Noonan fielded a series of questions from the Fianna Fail finance spokesperson Michael McGrath about the liquidation of Irish Bank Resolution Corporation. Some questions were stonewalled with what has become a template response on the subject – a non-response followed by “I thank the Deputy for his understanding in what is a crucial phase in the liquidation”
One response which was more revealing and which addresses a question posed on here this week, relates to the termination arrangements for the former CEO of IBRC, Mike Aynsley who is now understood to have left IBRC. What termination payments did he get? Did he get a full year’s salary of €500,000 as was understood to be part of his employment contract? Apparently not.
The parliamentary response from Minister Noonan confirms that Mike simply gets statutory terms which would be two weeks’ notice plus six weeks’ statutory redundancy plus any outstanding annual leave.
So, what is it worth? According to Citizens Information, for an employee with 2-5 years of service as Mike has, having joined in September 2009, he is entitled to two weeks’ notice, and there doesn’t appear to be any cap on sums payable, so Mike would presumably get €20,000 under that heading.
With three years of completed service, according to Citizens Information, he would be entitled to seven weeks’ pay but capped at €600 per week. So that would be €4,200 under that heading.
We have no way of knowing about unused annual leave but assuming he was taking his leave in the year in which it arose, it is likely that he would have 2-3 days or €4-6,000.
The full parliamentary question and response is here.
Deputy Michael McGrath: if he will provide details of the termination payments that will be made to the former CEO of the Irish bank Resolution Corporation, in liquidation (details supplied); and if he will make a statement on the matter.
Minister for Finance, Deputy Michael Noonan: Following the liquidation, all employment contracts in the Republic of Ireland have been terminated, including that of the former CEO, Mr Mike Aynsley. Mr Aynsley is entitled to apply for a statutory redundancy payment, a payment in respect of accrued but unused annual leave and a statutory notice payment, subject to the limits prescribed by statute.