That amount is lower than the figure recommended by Covered Institution Remuneration Oversight Committee (CIROC) set up to look at the issue.
The Committee recommended the following salary rates for chief executives: AIB €690,000 (down from €696,300); Bank of Ireland €690,000 (down from €1,185,000); Irish Life & Permanent €545,000 (down from €890,000); Anglo-Irish Bank €545,000 (position currently vacant); EBS €360,000 (down from €441,000); Irish Nationwide €360,000 (down from €1,000,000); Postbank €230,000 (€260,000).
However, the Government has set a limit of €500,000 or the amount recommended by CIROC, whichever is lower.
CIROC also recommended that no bonuses should be paid for last year or this year, or for as long as the State guarantee is in place, and called for a review of pension arrangements to see if the employee should make a higher contribution.
The Committee noted that stock options are of no benefit at the moment due to the fall in share prices.
Similar reductions will apply to other bank executives, and to Chairpersons and members of the boards.
The report into banking pay levels said companies should not pay more than is necessary to get the most suitable person for the job, but that banks had no difficulty in recruiting and retaining senior management, in many cases making appointments from within the organisation concerned.
