Allied Irish CEO Say Reviewing Pay, Benefits in Current Economy

Allied Irish Banks Plc (ALBK) Chief Executive David Duffy said the nation’s largest government- controlled lender must review staff pay and benefits and “benchmark them to the current economic environment.”

“AIB has spent the past 12 months stabilizing the bank,” Duffy said in an e-mail to staff today. “We are under no illusion as our scale of challenges that still lie ahead.” Helen Leonard, a spokeswoman for Dublin-based Allied Irish, confirmed the contents of the e-mail, obtained by Bloomberg News.

The lender is working on a strategy which is seeking “to outline the future course of the bank and the banking industry in Ireland,” Duffy said. The strategy will be finalized with the company’s executive committee and board “over the coming weeks” and announced to staff shortly after that, he said.

Duffy’s e-mail follows the bank announcing 2,500 job cuts today.

To contact the reporter on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net

To contact the editor responsible for this story: Finbarr Flynn at fflynn3@bloomberg.net

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