Request for Tender for a Review of Government Bank Remuneration Policy

Department of Finance

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:

• Korn Ferry

Who?

• Department of Finance

What?

Where?

• Eastern and Midland › Dublin

Procurement history

Date	Document
2018-07-25	Contract notice
2018-10-26	Contract award notice

Contract notice (2018-07-25)
Object
Scope of the procurement
Title: Financial consultancy services
Reference number: 10/2018
Short description:

Notice metadata
Original language: English 🗣️
Document type: Contract notice
Nature of contract: Services
Regulation: European Union, with participation of GPA countries
Common procurement vocabulary (CPV)
Code: Financial consultancy services 📦
Additional CPV: Financial management consultancy services 📦
Place of performance
NUTS region: Dublin 🏙️

Procedure
Procedure type: Open procedure
Type of bid: Submission for all lots
Award criteria
The most economic tender

Contracting authority
Identity
Country: Ireland 🇮🇪
Awarding authority type: Ministry or any other national or federal authority
Awarding authority name: Department of Finance
Postal address: Government Buildings
Postal code: Merrion Street
Postal town: Dublin
Contact
Internet address: http://www.finance.gov.ie 🌏
E-mail: paul.caball@finance.gov.ie 📧
Phone: +353 16045008 📞
URL for documents: http://irl.eu-supply.com/app/rfq/rwlentrance_s.asp?PID=132849&B=ETENDERS_SIMPLE 🌏
URL for participation: http://irl.eu-supply.com/app/rfq/rwlentrance_s.asp?PID=132849&B=ETENDERS_SIMPLE 🌏

Reference
Dates
Date dispatched: 2018-07-25 📅
Submission deadline: 2018-09-07 📅
Publication date: 2018-07-27 📅
Identifiers
Notice number: 2018/S 143-327225
OJ-S issue: 143

Object
Scope of the procurement
Estimated total value: 144 001 EUR 💰
Short description:

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.

Estimated value excluding VAT: 144 001 EUR 💰
Duration: 3 months
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
Suitability to pursue the professional activity: Minimum Turnover

Procedure
Legal basis: 32014L0024
Time of receipt of tenders: 12:00
Languages in which tenders or requests to participate may be submitted: English 🗣️
Tender validity period: 12 months
Tender opening date: 2018-09-07 📅
Tender opening time: 12:00
Place: Shareholding and Financial Advisory Division
Department of Finance
First Floor, Block 1
Miesian Plaza
51-58 Lower Baggot Street
Dublin 2
D02 XW14

Contracting authority
Identity
National registration number: N/a
Contact
Contact point: Paul Caball
Internet address: www.finance.gov.ie 🌏
Address of the buyer profile: https://irl.eu-supply.com/ctm/Company/CompanyInformation/Index/310 🌏
Documents URL: http://irl.eu-supply.com/app/rfq/rwlentrance_s.asp?PID=132849&B=ETENDERS_SIMPLE 🌏

Complementary information
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 📧
Internet address: 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 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.

Total value of the procurement: 144 001 EUR 💰
Notice metadata
Document type: Contract award notice

Procedure
Type of bid: Not applicable

Reference
Dates
Date dispatched: 2018-10-26 📅
Publication date: 2018-10-30 📅
Identifiers
Notice number: 2018/S 209-478180
Refers to notice: 2018/S 143-327225
OJ-S issue: 209

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 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.

Procedure
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 %

Award of contract
Date of contract conclusion: 2018-10-03 📅
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 📧
Country: Dublin 🏙️
Total value of the procurement: 144 001 EUR 💰
Information about tenders
Number of tenders received: 2
Source: OJS 2018/S 209-478180 (2018-10-26)

New procurements in related categories 🆕

Financial and insurance services (6 new procurements)

Banking and investment services (6)

Financial consultancy, financial transaction processing and clearing-house services (4)