AIB is close to buying Goodbody Stockbrokers in a deal that will allow the broker’s pay structures to stay in place, unaffected by the government ban on bank bonuses.
The bank is expected to acquire 100% of Goodbody, subject to Central Bank of Ireland approval, within the next month. Market sources estimate that the broker, Ireland’s second largest, could be sold for about €130m.
The state, which owns 71% of AIB, has operated an effective ban on the payment of bonuses at all taxpayer-supported banks since 2010.
Currently, any bonuses paid to bank staff are subject to a prohibitive 89% tax rate. Institutions are also under a salary cap of €500,000 a year on executive pay.
The sweeping ban affects about 23,000 workers across the
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