The Minister for Finance has said that Davy's existing pay structures would remain in place following Bank of Ireland's €440m acquisition of its wealth management and capital markets divisions and associated businesses.

In a statement, Paschal Donohoe said that pay and remuneration arrangements in a stockbroking and wealth management business are different to those in place in retail and commercial banking.

He said Bank of Ireland had sought his consent to continue the existing pay structures at Davy, and he had agreed.

"This has been done in a manner consistent with the AIB acquisition of Goodbody and ensures ongoing compliance with Government policy on bank remuneration which remains unchanged," he added.

In order to fully realise the significant potential synergies between the Bank of Ireland and Davy businesses, the Finance Minister said that a limited number of employees may transfer from Bank of Ireland to Davy but there will be no movement of staff until regulatory approval is granted for the deal.

When the deal is complete, up to 80 people will be allowed to move from Bank of Ireland to Davy by the end of 2022, with up to 12 people a year after that.

The Minister also said that no former Bank of Ireland employee earning more than €50,000 a year will be hired into Davy within two years of departing the bank.

The Government currently caps bank staff pay at €500,000 per year, with a 'super-tax' of 89% applied to bonuses.

In his statement Mr Donohoe said the sale of Davy to Bank of Ireland is a welcome outcome for the Irish economy due to the stockbroker's importance as an indigenous wealth manager and capital markets firm.

"Today's announcement by Bank of Ireland brings to an end an uncertain period for Davy and provides it with a well-capitalised owner providing opportunities for growth, which will support the wider needs of the Irish economy and businesses," Mr Donohoe said.

"This transaction provides Bank of Ireland with growth opportunities as it expands its product range in the high net worth and mass affluent categories," he said.

"Furthermore, it supports the bank's stated strategic priority of growing the wealth and insurance business with the aim of unlocking growth opportunities in Ireland, increasing fee income, and generating sustainable profits," he added.