A Department of Finance submission on the latest sale of the Government's stake in AIB states there is no legal requirement to change the compensation cap as long as the state remains a shareholder. However, the submission acknowledges the need to normalize the relationship between the State and AIB as the shareholding reduces towards zero, which could involve considering the removal of crisis-era measures such as the compensation cap and super tax. The submission also highlights the successful performance of AIB in 2024 and the potential for further share sales.
Submission on latest sale of State shares in bank says no legal requirement to change the compensation cap
It said a further disposal of shares could take place before a conversation on pay and perks was necessary with AIB. A Department of Finance submission from mid-January said there was a lengthy window for a further sale of the state’s stake in AIB before their annual financial results on March 5th. Mr Donohoe was advised he would need to have “political clearance” for the sale on the final weekend of January. It said this would leave a “clear path” for the Department to move quickly and “take advantage of market conditions”.
The post-sale briefing said proceeds from the sale were around €652 million and the state’s shareholding was now down to 12.5 per cent.
AIB Compensation Cap Super Tax Share Sale State Ownership
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
‘Part of the CV is to be unshockable’: the man who decides on legal costsState’s first chief legal costs adjudicator says legal costs claims are ‘high’ rather than ‘excessive’
Read more »
State to Sell More of Its Shares in AIBThe Irish government is preparing to sell another 5% stake in AIB, bringing the total recovered from the bank's bailout to approximately €17.8 billion. This sale is expected to raise around €650 million and reduce the State's holding to 12.5%.
Read more »
Ireland Near Completion of AIB Share Sale, Targeting 100% Exit by Year's EndIreland is nearing the end of its divestment of shares in AIB, the country's largest bank. Finance Minister Paschal Donohoe announced the recent sale of a 5% stake, raising €652 million and reducing the state's ownership to 12.5%. This marks a significant step towards fully exiting AIB, a goal the government hopes to achieve by year's end if market conditions are favorable. The Irish state previously intervened heavily in the banking sector during the 2008 financial crisis, injecting €64 billion into banks to stave off collapse. Since then, it has been gradually selling off its stake in various banks, including Bank of Ireland, which returned to full private ownership in 2022. The total proceeds from the sale of AIB shares so far have reached approximately €17.9 billion, returning a substantial portion of the state's investment.
Read more »
DeepSeek AI and Irish AIB Share Sale Dominate NewsMarkets are in turmoil following the emergence of a low-cost Chinese AI technology, DeepSeek, capable of competing with US giants. The news raises questions about the future of Big Tech valuations. In Ireland, the State sold another 5% stake in AIB, reducing taxpayer holdings to 12.5%. The program also discusses the implications of this divestment and the government's plans for the remaining stake.
Read more »
A large sale of AIB shares will be tempting for new CoalitionAIB seen by analysts as one of the most exposed large lenders across Europe
Read more »
AIB Cuts Deposit Rates as Irish Lenders Pass on ECB ReductionsAllied Irish Banks (AIB) has lowered its one- and two-year fixed-term deposit rates, following a trend among Irish lenders to reflect the European Central Bank's (ECB) rate cuts over the past year. The bank is reducing rates by 0.25 percentage points, while also lowering the minimum balance requirement for fixed-term deposits. AIB's move follows similar actions by Bank of Ireland, neobanks Revolut and N26, and online savings marketplace Raisin.
Read more »