Poor old Brendan McDonagh, the NAMA CEO. When he signed up to the role of boss at the Agency in 2009, he was given a salary of €430,000 plus a bonus scheme which allowed him to earn a further 60% or €258,000 per annum if he met objectives. Since then, Brendan has worked his backside off for the Agency and taken on one of the most difficult commercial and public sector roles anywhere in the world. But material rewards appear not to be on the cards for Brendan. He has never received a bonus and in 2012 (and presumably 2013) he is waiving 15% of his basic salary which means the €430,000 has reduced to €365,500.
Last week in the Dail, the Minister for Finance, Michael Noonan stated that NTMA and NAMA staff would be affected by Croke Park 2, which provides for a range of salary reduction to those whose gross salary is more than €65,000. As the 24/7 Frontline Alliance will tell you, those earning less than €65,000 also face reductions in allowances and suchlike which will take between 3-11.4% off an average worker.
For those earning over €65,000 Croke Park 2 provides for a 5.5% reduction on salaries €0-€80,000, 8% on the next €70,000, 9% on the next €35,000 and 10% on the remainder. So a €365,500 salary will fall by €31,200 to €334,300.
For someone who had good reason to believe they would be earning €688,000 a year back in 2009, it must be a disappointment to be making do with €334,300 in 2013. As an aside, the NAMA chairman Frank Daly will also see his salary fall. The 2011 NAMA annual report showed his annual fees at €153,778 and those should drop by €10,320 to €143,238.
The Minister was responding to a parliamentary question from the Sinn Fein foreign affairs spokesperson Deputy Pádraig Mac Lochlainn and the full parliamentary question and response is here.
Deputy Pádraig Mac Lochlainn: asked the Minister for Finance his views on plans to extend pay cuts to the National Treasury Management Agency and the National Assets Management Agency; if he will detail the way these cuts will affect senior staff in both agencies by outlining their current pay levels and their expected pay levels following the cuts.
Minister for Finance, Michael Noonan:It is envisaged that any legislation introduced by the Government to reduce public service salaries will apply to NTMA employees, including employees assigned to NAMA.