AIB chief executive Mr Michael Buckley saw his pay packet swell by almost 50 per cent to €1.4 million last year, according to the bank's latest annual report.

The report shows that Mr Buckley drew a basic salary of €660,000 in 2003, as well as a bonus of €570,000. This included a special bonus of €250,000 in relation to AIB's merger of its troubled US subsidiary, Allfirst, with M&T Bank.

The deal resulted in AIB taking a 22.5 per cent stake in M&T.

Mr Buckley's pension contributions amounted to €69,000.

Mr Buckley's remuneration package, which compares to the €1.32 million received by Bank of Ireland chief executive Mr Mike Soden in 2002, was by far the largest at AIB last year.

The bank's finance director, Mr Gary Kennedy, came closest to Mr Buckley with an overall pay package of €785,0000. This was some 47 per cent higher than Mr Kennedy's remuneration in 2002.

It included a basic salary of €381,000 and a bonus of €275,000. The bonus included a special payment of €125,000, again in relation to the M&T deal.

Mr Colm Doherty, who manages AIB's Capital Markets division, was paid a total of €640,000 last year. This included a salary of €343,000 and a bonus of €185,000.

The bank's remaining executive director, Mr Aidan McKeon, received total pay of €540,000 last year. Mr McKeon, managing director of AIB's UK arm, was paid a basic salary of €271,000 and a bonus of €141,000.

Both Mr Doherty and Mr McKeon joined the AIB board in the course of 2003.

AIB chairman Mr Dermot Gleeson was meanwhile paid €217,000 in connection with his non-executive duties last year. This compared to the €216,000 paid to the former chairman, Mr Lochlann Quinn, in 2002.

AIB's 11 non-executive directors shared fees of €927,000 in 2003, up from the €743,000 that was paid to 10 non-executives in 2002.