The 13 directors of the IFSC-based Depfa Bank gave themselves a 68 per cent pay rise last year, bringing the value of their overall remuneration package to more than €34 million, writes  Arthur Beesley, Senior Business Correspondent

The money paid out to the directors of the German-listed bank, which concentrates on low-risk public sector lending, is significantly higher than the sums paid to the directors of the major Irish banks.

Irish board members at Depfa bank include the retired Central Bank governor Maurice O'Connell and Prof Frances Ruane of Trinity College Dublin, both of whom are non-executive directors.

Other non-executive directors include Hans Tietmeyer, retired president of the Bundesbank, Germany's central bank. Another prominent non-executive director is Jacques Poos, an MEP for Luxembourg and a former minister for foreign affairs for that country.

The only Irish executive director at Depfa is Dermot Cahillane, a former AIB executive, who was appointed managing director in 1997 and is responsible for credit, administration and human resources at Depfa.

New filings in the Companies Office show Depfa paid its directors €34.059 million last year, up from €20.209 million in 2003. The fees paid out for services as directors were virtually static at €766,038, but salaries and other emoluments rose to €33.293 million from €19.442 million.

The bank employs 396 staff, whose average pay last year was €219,696.

Depfa's German-based spokesman said the rise in directors' pay was linked to the increase in the bank's net profits, which rose last year to €497 million from €295 million.

The bank did not break down individual payments to directors as there was no requirement to do so under German stock exchange rules, he said.

After changes to these rules, there will be an obligation to publish the information from 2006.

However, it is a virtual certainty that the payments to the directors are heavily weighted in favour of top managers who are executive directors.

The bank is led by chairman and chief executive Gerhard Bruckermann.

Its vice chairman and deputy chief executive is Thomas Kolbeck and its chief financial officer is Reinhard Grzesik.

Other executive directors who served on the board last year included Dr Richard Brantner, Depfa's then vice-chairman, who is now a non-executive director.

The remuneration package received by Depfa's directors compares very favourably with that paid by some of the big Irish-listed financial institutions.

For example, the executive and non-executive directors of Anglo Irish Bank received €9.16 million in 2004, up from €8.31 million a year earlier.

The executive directors of AIB received €4 million last year, up from €3.4 million in 2003.

The executive and non-executive members of the "court" of the Bank of Ireland received €4.46 million in 2004, up from €3.38 million.