Sean\’s Sicily

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Posts Tagged ‘salary cap

Mass Exodus of Senior Management in Irish Bank

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So the Indo today has an article saying that the government has capped banking salaries at €500k, leading to cries of outrage from the banks, who are used to paying their (largely useless) managment salaries with 6 zeroes after them, instead of only 5.

“However, one senior banker warned the fact that the report calls for “adequate headroom” between the salaries of chief executives and subordinates “will likely lead to a mass exodus of senior management over the coming months”.”

And I say – bloody fantastic!  As someone who has had experience dealing with banks and senior banking figures, I can admit that I was never impressed by Irish bankers on the whole, who are too old and too conservative and muddle along from bad decision to bad decision, making up the outragous losses they incur by screwing the Irish consumer, and thus turning in huge profits.

I mean, let’s be clear here – the issues facing Irish banks today aren’t the same one that have crippled American banks, by and large.  It wasn’t the Irish coming up with fancy new ways of making money, of repackaging debt, finding new markets.  No no no no no.

The Irish banks are screwed because they lent far too much money to Irish developer friends.  You think that these big developers make detailed business plans and put up security and all that stuff, like a normal house-buyer?  Do they fck!

What they actually do is meet their banking buddy on the 18-hole golf course in Portmarnock, the K-Club or Druids Glen, and come to a nice agreement and then the banking guy goes back and tells his managers what the deal is.

And then picks up millions of euro in a salary.

“Mass exodus” of senior management?  I say – good riddance!  Give the young guys a chance.

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Written by seancasaidhe

March 14, 2009 at 6:57 am