The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to remuneration in AIB, BOI and Ptsb. During the financial crisis the State provided 64 000 000 000 GBP in financial support in various forms to the banking system. In return, banks supported by the State agreed to a range of measures including restrictions in relation to remuneration.
Deadline
The time limit for receipt of tenders was 2018-09-07.
The procurement was published on 2018-07-25.
Suppliers
The following suppliers are mentioned in award decisions or other procurement documents:
Object Scope of the procurement
Title: Request for Tender for a Review of Government Bank Remuneration Policy
10/2018
Products/services: Financial consultancy services📦
Short description:
“The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to...”
Short description
The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to remuneration in AIB, BOI and Ptsb. During the financial crisis the State provided 64 000 000 000 GBP in financial support in various forms to the banking system. In return, banks supported by the State agreed to a range of measures including restrictions in relation to remuneration.
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Estimated value excluding VAT: EUR 144 001 💰
1️⃣
Additional products/services: Financial management consultancy services📦
Place of performance: Dublin🏙️
Description of the procurement:
“The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to...”
Description of the procurement
The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to remuneration in AIB, BOI and Ptsb. During the financial crisis the State provided 64 000 000 000 GBP in financial support in various forms to the banking system. In return, banks supported by the State agreed to a range of measures including restrictions in relation to remuneration.
As well as the much publicised 500 000 GBP total compensation limit (excl. pension) and the prohibition on all bonuses (cash and shares), there are also a range of other restrictions in the Letter that limit the banks’ freedom of action without the Minister’s formal consent.
These restrictions not only apply to staff, executives and directors but they also cover “service providers” to the banks where they derive their custom predominantly or exclusively from the banks. The restrictions also apply to all staff of the banks regardless of the country in which they work and as such the bank cannot use variable pay as a retention mechanism in the UK, US and Europe even in business lines where this would be the norm in those markets.
Since then a new banking regulatory framework has been put in place across the EU, the economy has returned to near full employment, the relevant banks are profitable again. The State remains the largest shareholder in AIB, BOI and Ptsb but following the successful IPO of AIB in June 2017 all three banks are also now have listings on the main market of the Dublin and London stock exchanges.
In light of the above and the more intense competition for talent evident in the economy as a whole, the Department of Finance considers it appropriate to conduct a further review of the existing remuneration policy to determine if the current restrictions are still fit for purpose.
Show more Award criteria
Price is not the only award criterion and all criteria are stated only in the procurement documents
Scope of the procurement
Estimated total value excluding VAT: EUR 144 001 💰
Duration of the contract, framework agreement or dynamic purchasing system
The time frame below is expressed in number of months.
Description
Duration: 3
Duration of the contract, framework agreement or dynamic purchasing system
This contract is subject to renewal ✅ Description
Description of renewals:
“The Contracting Authority reserves the right to extend the Term for a period or periods of up to three (3) months with a maximum of six (6) months such...”
Description of renewals
The Contracting Authority reserves the right to extend the Term for a period or periods of up to three (3) months with a maximum of six (6) months such extension or extensions on the same terms and conditions, subject to the Contracting Authority’s obligations at law.
Legal, economic, financial and technical information Conditions for participation
List and brief description of conditions: Minimum Turnover
Economic and financial standing
Selection criteria as stated in the procurement documents
Technical and professional ability
Selection criteria as stated in the procurement documents
Information about staff responsible for the performance of the contract
Obligation to indicate the names and professional qualifications of the staff assigned to performing the contract
Procedure Type of procedure
Open procedure
Administrative information
Time limit for receipt of tenders or requests to participate: 2018-09-07
12:00 📅
Languages in which tenders or requests to participate may be submitted: English 🗣️
The time frame below is expressed in number of months.
Minimum time frame during which the tenderer must maintain the tender: 12
Conditions for opening of tenders: 2018-09-07
12:00 📅
Conditions for opening of tenders (place):
“Shareholding and Financial Advisory Division
Department of Finance
First Floor, Block 1
Miesian Plaza
51-58 Lower Baggot Street
Dublin 2
D02 XW14”
Complementary information Information about electronic workflows
Electronic ordering will be used
Electronic invoicing will be accepted
Electronic payment will be used
Review body
Name: Department of Finance
Postal address: Department of Finance Government Buildings, Upper Merrion Street
Postal town: Dublin
Postal code: D02R583
Country: Ireland 🇮🇪
Phone: +353 16045008📞
E-mail: paul.caball@finance.gov.ie📧
URL: www.finance.gov.ie🌏
Source: OJS 2018/S 143-327225 (2018-07-25)
Contract award notice (2018-10-26) Object Scope of the procurement
Short description:
“The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to...”
Short description
The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to remuneration in AIB, BOI and Ptsb. During the financial crisis the State provided 64bn EUR in financial support in various forms to the banking system. In return, banks supported by the State agreed to a range of measures including restrictions in relation to remuneration.
Show more
Total value of the procurement (excluding VAT): EUR 144 001 💰
Description
Description of the procurement:
“The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to...”
Description of the procurement
The provision of advice and assistance to the Department of Finance in conducting a review of the Government’s current restrictions in relation to remuneration in AIB, BOI and Ptsb. During the financial crisis the State provided 64bn EUR in financial support in various forms to the banking system. In return, banks supported by the State agreed to a range of measures including restrictions in relation to remuneration.
As well as the much publicised 500 000 EUR total compensation limit (excl. pension) and the prohibition on all bonuses (cash and shares), there are also a range of other restrictions in the Letter that limit the banks’ freedom of action without the Minister’s formal consent.
These restrictions not only apply to staff, executives and directors but they also cover “service providers” to the banks where they derive their custom predominantly or exclusively from the banks. The restrictions also apply to all staff of the banks regardless of the country in which they work and as such the bank cannot use variable pay as a retention mechanism in the UK, US and Europe even in business lines where this would be the norm in those markets.
Since then a new banking regulatory framework has been put in place across the EU, the economy has returned to near full employment, the relevant banks are profitable again. The State remains the largest shareholder in AIB, BOI and Ptsb but following the successful IPO of AIB in June 2017 all three banks are also now have listings on the main market of the Dublin and London stock exchanges.
In light of the above and the more intense competition for talent evident in the economy as a whole, the Department of Finance considers it appropriate to conduct a further review of the existing remuneration policy to determine if the current restrictions are still fit for purpose.
Show more Award criteria
Quality criterion (name): Quality of Offering
Quality criterion (weighting): 50 %
Quality criterion (name): Quality of Team
Quality criterion (weighting): 30 %
Price (weighting): 20 %
Procedure Administrative information
Previous publication concerning this procedure: 2018/S 143-327225
Award of contract
1️⃣
Contract Number: 1
Title: Request for Tender for a Review of Government Bank Remuneration Policy
Date of conclusion of the contract: 2018-10-03 📅
Information about tenders
Number of tenders received: 2
Number of tenders received from tenderers from other EU Member States: 1
Number of tenders received from tenderers from non-EU Member States: 1
Number of tenders received by electronic means: 2
Name and address of the contractor
Name: Korn Ferry
National registration number: VAT Registration No. GB 539135439.
Postal address: 22-24 Lower Mount Street
Postal town: Dublin 2
Country: Ireland 🇮🇪
E-mail: dom.crotty@kornferry.com📧
Region: Dublin🏙️
The contractor is an SME
Information on value of the contract/lot (excluding VAT)
Estimated total value of the contract/lot: EUR 144 001 💰
Total value of the contract/lot: EUR 144 001 💰
Source: OJS 2018/S 209-478180 (2018-10-26)