After it emerged that AIB is paying €40m in bonuses to executives at the bank, the Minister for Finance has proposed a 90% tax on any future bank bonuses.
However this would not affect the AIB bonuses revealed today.
AIB Executive Chairman David Hodgkinson told staff this afternoon that the issuing of the €40m in bonuses to executives 'reflects the past'.
Mr Hodgkinson made his comments in a note to staff this morning after it emerged that 2,400 workers will receive an average bonus of €16,700.
AIB will give the bonuses after several staff took court action to secure the payments.
The payments are part of contracts signed before the financial crisis began in 2008.
It is believed that cheques will be posted to executives on 17 December.
'Whilst this is legally required of us, it reflects the past and is not the way we intend to conduct ourselves in future,' Mr Hodgkinson said.
He added: 'The issues we are facing mean that the bank currently relies on government and taxpayer support and I am working to ensure that, in future, our pay and benefits policy is more reflective of our organisation's responsibilities, performance and of the economic climate in general.'
The bank has so far received €3.5bn of recapitalisation funds from the State.
Shares in the bank have plummeted from €23.95 to just 50c over the last two years.
The €40m represents a significant part of the €572.9m the bank is worth on the ISEQ today. Almost €55m was paid to staff in bonuses last year.
IDA Ireland Chief Executive Barry O'Leary has said it is 'bizarre' that AIB is paying €40m in bonuses to executives.
Mr O'Leary told RTÉ Radio that he wished the IDA had that sort of money to repair the country's tarnished reputation on the international scene.
The issue was raised by Opposition parties in the Dáil this morning.
Labour leader Eamon Gilmore said that the bonuses would amount to more than what a carer would get all year.
Elsewhere, Fine Gael leader Enda Kenny described the payment as scandalous.
He said it was an obscenity that the Irish taxpayer was being asked to fork out for these bonuses while the most vulnerable in society had to bear the brunt of the 'recklessness and incompetence' of Government.
The party is to propose amendments to legislation to impose a 99% 'super tax' on bankers' bonuses.
The amendments are to be put down to the Financial Emergency Measures Bill, which is due to clear all stages in the Dáil by tomorrow afternoon.
Banking Spokesperson Damien English said the proposed amendments would 'tax these immoral bonuses out of existence.'
Minister Lenihan said this afternoon that legislation brought in on foot of the bank guarantee already prohibits the payment of any performance bonuses to senior bank executives.
No bonuses have been paid to bankers for 2009 or for this year.
