Date of dispatch of this notice: 26/10/2018
External Reference: 2018-299901
TED Reference: 2018/S 209-478180
Contract award notice
Information
Published
Contract award notice
[NoticeContractAward]
[NoticeContractAwardSub]
[Directive201424]
[Section1]: [Ca]
I.1)
[NameAddressContact]
Department of Finance
N/A
Government Buildings
Dublin
Merrion Street
IE
[Contactpoint]:
Paul Caball
[AddressPhone]:
+353 16045008
[AddressEmail]:
paul.caball@finance.gov.ie
[Internets]:
[UrlGeneral]:
www.finance.gov.ie
[UrlBuyerprofile]:
https://irl.eu-supply.com/ctm/Company/CompanyInformation/Index/310
I.4)
[CaType]
[MaintypeMinistry]
I.5)
[Mainactivity]
[MainactivEconomic]
[Section2]: [Object]
II.1)
[QuantityScopeContract]
II.1.1)
[TitleContract]
Request for Tender for a Review of Government Bank Remuneration Policy
[Fileref]:
10/2018
II.1.2)
[CpvMain]
66171000
-
II.1.3)
[TypeContract]
[Services]
II.1.4)
[DescrShort]
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 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.
II.1.6)
[LotsInfo]
[DivisionLots]:
[No]
II.1.7)
[ValueTotal]
[ValueExclVat]:
144001.00
EUR
II.2)
[Description]
II.2.2)
[CpvAdditional]
79412000
-
II.2.4)
[DescrProcurement]
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 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 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 & 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.
As well as the much publicised €500,000 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 & 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.
II.2.5)
[AwardCriteria]
[AwardCriteriaBelow]
[AwardCriterionQuality]
-
[AwardCriterionName]:
Quality of Offering
/
[Weighting]:
50%
[AwardCriterionQuality]
-
[AwardCriterionName]:
Quality of Team
/
[Weighting]:
30%
[Price]
-
[Weighting]:
20%
II.2.11)
[OptionsInfo]
[Options]:
[No]
II.2.13)
[EuProgrInfo]
[EuProgrRelated]:
[No]
[Section4]: [Procedure]
IV.1)
[Description]
IV.1.1)
[TypeProcedure]
[ProctypeOpen]
IV.1.8)
[GpaInfo]
[GpaCovered]
: [Yes]
IV.2)
[InfoAdmin]
IV.2.1)
[PubPrevious]
[NumberOj]: 2018/S 143-327225
[Section5]: [AwardOfContract]
[ContractNumber]: 1
[TitleContract]: Request for Tender for a Review of Government Bank Remuneration Policy
V.2)
[AwardOfContract]
V.2.1)
[DateAward]
03/10/2018
V.2.2)
[AwardOffersInfo]
[OffersReceived]:
2
[NumberTendersMs]:
1
[NumberTendersNonms]:
1
[OffersReceivedElectronic]:
2
[AwardedGroup]
:
[No]V.2.3)
[AwardedToName]
Korn Ferry
VAT Registration No. GB 539135439.
22-24 Lower Mount Street
Dublin 2
IE
[AddressEmail]:
dom.crotty@kornferry.com
[AwardedSme] : [No]
V.2.4)
[ValueContractInfo] ([ExclVat])
[ValueEstimTotalContract]:
144001.00
EUR
[ValueTotalFinal]:
144001.00
EUR
[Section6]: [InfoComplement]
VI.4)
[AppealsProcedure]
VI.4.1)
[AppealsBody]
Department of Finance
Department of Finance Government Buildings, Upper Merrion Street
Dublin
D02R583
IE
[AddressPhone]:
+353 16045008
[AddressEmail]:
paul.caball@finance.gov.ie
[Internet]:
www.finance.gov.ie