The Finance Minister’s insisting he hasn’t approved proposed salary arrangements for the top job at AIB.

It’s been reported today that the man tipped for the post wouldn’t be subject to the salary cap imposed on banking chief executives by the Brian Lenihan earlier this year.

Instead, he would be appointed to the role of ‘managing director’, meaning the chief executive rule wouldn’t apply.

A statement from Minister Lenihan says he’s received a proposal from Allied Irish Bank on certain salary arrangements – but has not approved them.

General Secretary of the IBOA Larry Broderick says Brian Lenihan has to take a handle of the situation.

“The question has to be posed of the Minister for Finance ‘what’s going on here?” he said.

“One would have thought in the normal set of circumstances, as has happened elsewhere, that a clear lead has been given and that the Minister in power – in terms of looking at recapitalisation of the bank – would give a very clear direction” he added.

Meanwhile, Fine Gael’s Leo Varadkar says the Minister must block both Doherty’s appointment and the salary.

“Essentially what AIB are doing is giving two fingers – one to the tax payer and one to the government” he said.

“They’ve been guaranteed, they’ve been bailed out, they’ve been recapitalised and they’ve been NAMA-ed; and now they think they can do whatever they like – well they can’t”.

“The Minister must block block the appointment and refuse the increase” he added.