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Allied Irish Bank HQ, Dublin

Allied Irish Bank set to pay out $53million in bonuses

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Allied Irish Bank HQ, Dublin

Struggling Allied Irish Bank is set to dish out almost €40 million ($53 million) in bonuses to staff this month in the wake of the worst banking crisis to hit Ireland.

The latest reports suggest that the bank is will pay all staff who were contractually entitled to deferred 2008 bonuses in their December pay packet.

The substantial pay out comes after John Foy, a trader with the bank, took successful legal action against AIB for payment of a deffered bonus of €161,000 ($214,000).

Up to 90 other employees in the banks capital markets division have issued similar legal proceedings against the bank.

Due to the Government's bank guarantee scheme, AIB had been restricted from making the payments.

Speaking in the Irish Parliament recently, Finance Minister Brian Lenihan confirmed the payments were going to be made as a result of the legal action.

"The awards made in 2009 to staff in AIB Capital Markets in respect of 2008 were deferred and subsequently paid following threatened or initiated legal action," he said.

An estimated €35.5m ($47million) will be paid after the High Court Judgment against the bank.

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