"Ironically, after refusing to give ground on even a modest income tax cut for Irish PAYE workers this year, the new role comes with the major bonus of an exemption from US income tax. The outgoing number two at the World Bank Group, Axel van Trotsenburg, is due to retire at the end of this month, creating the vacancy. Mr Van Trotsenburg's total pay package last year was just over $700,000 (€604,00), including a base salary of $506,140, according to the World Bank Group's annual report for 2025."
"That income is exempt from income tax for non-US citizens who move to Washington DC to take up a role, as Paschal Donohoe will be doing. World Bank president Ajay Banga is the group's biggest earner - his pay package this year is more than $1m. Most managing directors at the organisation - there are currently five plus a similar number of vice-presidents - earn between $650,000 and $700,000 a year."
"Those salaries are high compared to the €206,000 a year an Irish cabinet minister makes, but not in US terms and nothing compared to what Paschal Donohoe could make in the private sector, after the required cooling-off period. The likes of Goldman Sachs, UBS or even Ireland's own Stripe could all be expected to write significantly bigger cheques to hire a well-regarded and extremely well-connected former president of the Eurogroup to a board or executive role."
Paschal Donohoe will move to Washington DC to assume the World Bank Group number two role following Axel van Trotsenburg's retirement. Mr Van Trotsenburg's reported total pay package last year exceeded $700,000, including a base salary of $506,140. That income is exempt from US income tax for non-US citizens who relocate for roles. World Bank president Ajay Banga earns more than $1m, and most managing directors earn between $650,000 and $700,000. Those salaries surpass the €206,000 annual pay of an Irish cabinet minister but are below potential private-sector offers after the cooling-off period.
Read at Independent
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