AIB has told staff that it intends to introduce healthcare cover and an approved profit-sharing scheme, following the partial lifting last year of restrictions on bankers' remuneration.
Chief executive, Colin Hunt, told RTÉ News that the updates to the remuneration policy would take some time to introduce, but the bank is aiming to have the healthcare cover in place next year.
"On the variable remuneration scheme for employees, that will be developed over the coming months and will take account of the overall performance of the group," he said, with awards payable from next year.
According to the bank’s annual report, the short-term variable remuneration scheme would be available to all employees, including executive directors and executive committee members.
Based on company performance, it will not exceed €20,000 per employee per year, which is the upper limit set by the Government under the revised remuneration policies set in December.
The bank said employees will be offered the choice of taking an award in cash or, where feasible, in shares or a combination of both.
The news was welcomed by the Financial Services Union (FSU), although it added that the bank's operating profit of over €1 billion should lead to higher pay for staff.
"The announcement of bumper profits today by AIB needs to be quickly followed by an announcement of an increased pay offer for staff in 2023," said Billy Barrett, senior industrial relations officer with the FSU.
"The FSU have been highlighting in discussions with AIB the need for a top up to the already agreed pay deal for 2023 and a separate cost of living payment for staff to help with rising inflation."
The development came as the bank's Remuneration Committee chairperson said its inability to implement a "performance related, competitive market-driven compensation and benefits structure" has been a key risk to the future stability and performance of the group.
Elaine Maclean said the retention by the Government of the €500,000 salary cap means that the bank is not able to pay senior management on an equal footing with its competitors.
She said the committee will continue to monitor the impact of the cap on the recruitment and retention of senior talent.
Ms Maclean also said the committee will engage with the bank’s management to ensure that the changes being introduced meet regulatory requirements and best practice guidance and will be in the best interest of employees, shareholders and other stakeholders, in particular customers.
Last month Bank of Ireland said it would begin introducing staff bonuses from next year, following the easing of the pay restrictions.
Yesterday the CEO of Bank of Ireland, Myles O’Grady, said the relaxation of the remuneration restrictions was very helpful as far as the bank's ability to attract, retain and reward staff across the entire group is concerned.
However, he also said that he would like it to be able to compete equally with all companies when it comes to variable pay, where restrictions remain in place.
