AIB Group Chief Executive Colin Hunt’s potential pay package has risen to €2.7 million, signaling a significant shift towards international norms for Irish banking executive compensation. The increase follows the State’s full divestment from AIB last year, removing previous fixed pay caps.
Hunt’s base salary has increased from €500,000 to €795,000, and then to €1.35 million, according to reports. AIB also intends to utilize fixed share awards equivalent to up to 100 percent of his salary, a strategy designed to circumvent existing bonus caps that apply a tax rate of 89 percent to bonuses exceeding €20,000.
The move comes as Irish banking seeks to align with European counterparts. A 2024 analysis by SUERF, a European network of banking professionals, found the average CEO of a European Stoxx 600 bank earned approximately €3.5 million in 2023. CEOs at larger, cross-border lenders often earn considerably more.
The lifting of pay caps has sparked debate, particularly given the historical context of the Irish financial crisis and the subsequent €64 billion taxpayer bailout. Critics point to the years of austerity and the lasting impact on individuals and families as reasons to question substantial increases in banker pay, as noted by RTÉ.
Colin Hunt was appointed CEO of AIB Group in March 2019 and is also an Executive Director on the AIB Group board. He was elected President of the Institute of Banking in 2021 and served in that role until 2022. He is also a Board member of The Ireland Funds, Ireland Chapter.
AIB has pledged €1.25 million to fund the first Chair of Sustainable Business in Ireland at University College Cork. Hunt is a member of the Bretton Woods Committee.
The Institute of Banking has not yet responded to requests for comment regarding the recent pay adjustments.
