Goodbody Stockbrokers has told staff not to expect bonuses for a second straight full year under AIB’s ownership, according to sources.
It comes within weeks of the firm moving to cut 20 of the 100 jobs there were in its investment banking unit amid a global slowdown in deal-making and fundraisings and an expected acceleration of large companies leaving the Irish stock market.
Goodbody, which has been led by chief executive Martin Tormey since it was bought by AIB two years ago, had about 350 employees before the job cuts were announced.
The company also acquired Clearstream Solutions, an environmental, social and governance consultancy that has 15 employees, earlier this month for an undisclosed amount.
A Goodbody spokesman declined to comment on the plan not to pay out bonuses this year when contacted on Friday.
AIB sold Goodbody in 2011 to Kerry-based financial services group Fexco and the firm’s management team as it was offloaded what were seen as non-core assets in the wake of the bank’s government bailout.
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It bought Goodbody in September 2021 for €138 million, after the stockbroking and wealth management firm was the subject of two abortive takeover deals by separate Chinese groups in 2019 and 2020, respectively. Goodbody forms part of AIB’s capital markets division, which is led Cathy Bryce.
AIB got a concession from the Government at the time of the Goodbody purchase to allow the stockbroker to continue to pay bonuses, depending on the firm’s financial performance, even as variable pay continued to be banned at the bank itself as a result of its bailout.
The Government decided last December to allow for bonuses across the banks of up to €20,000 per employee. However, AIB said on Thursday that it would cap cash awards at €12,700 as it returns to paying variable pay next year while at the same time introducing healthcare benefits for all employees.
