NAMA: It’s All About What Values You Believe In
Ireland after NAMA has an interesting blog post which links to Ronan Lyons assumptions about whether those running NAMA have got their assumptions right with regard to the “fall from peak to time-of-tranfer, the yield, and how yields might correct”. The writer goes on to say that “given the drop in land values, the oversupply of both residential and commercial property, and the downward trend in residential and commercial prices and rents” there is a serious doubt that these assumptions are any where near right.
“Is this a case of blind faith? Time will tell.”
So while we’re waiting to find out those who have made the assumptions are set to get even better salaries than they were originally offered when NAMA was set up. In the Dail today Sinn Fein’s Arthur Morgan got a reply to a question which showed that the salaries of members of the NAMA board were revised upwards after the paycuts announced in Budget 2010.
In the press release Arthur Morgan TD said:
“The increase for the Chairperson went from €100,000 to €170,000 and the increase for the Board Members went from €38,000 to €50,000, all within just a few weeks of them being appointed.”
Below is the Parliamentary Question tabled by Deputy Morgan and the response from Minister Lenihan.
DÁIL QUESTION
NO 65
To ask the Minister for Finance the level of remuneration for the National Asset Management Agency board members; if he will disclose this; if this was set prior to the paycuts announced in Budget 2010; if these paycuts apply; and if he will make a statement on the matter.
- Arthur Morgan.
For ORAL answer on Wednesday, 10th March, 2010.
Ref No: 11447/10
REPLY
Minister for Finance ( Mr Lenihan) : Under section 21 (1) and 25 (9) of the National Asset Management Agency (NAMA) Act 2009, I have approved the following fee arrangements. In setting the fees account was taken of the critical importance of the work to be undertaken by the Board and the fact that its workload will be excessive by normal standards in the first year of operation. I intend to review the fees after a year.
Chairperson -all inclusive fee of €170,000 per annum on the understanding that the incumbent is available without restriction.
Chairperson of Credit Committee - all inclusive fee of €150,000 per annum on the understanding that the incumbent works no less than 3 to 4 days a week.
Ordinary Board Members - fee of €50,000 per annum.
Chair of other Committees - fee of €10,000 per annum in addition to Ordinary Board Member fee subject to a maximum of one per member.
The Board was appointed on 22 December 2009. Originally, the fees for the Chairperson and Ordinary Board Members were set at €100,000 and €38,000 respectively. Following discussions with the Chairperson and the Chief Executive of the National Treasury Management Agency last month and in light of the workload of the Board’s operations over the initial period of its operation I revised these fees from a current date.
Ref No: 11447/10
We welcome and encourage lively discussion from the public about articles on Irish Left Review. You can leave a comment using the form at the bottom of the page. Please read through the existing comments before posting your own.