Bermuda Monetary Authority CEO Matthew Elderfield will be taking a hefty pay cut to take on his new role as head of financial supervision at the Central Bank of Ireland.

The bank's governor Dr. Patrick Honohan, who will become Mr. Elderfield's new boss on January 4,told The Irish Times that Mr. Elderfield's take-home pay would fall 48.6 percent compared to what he earns in Bermuda.

Dr. Honohan revealed that Mr. Elderfield receives an annual pay package worth $730,000 from financial regulator the BMA.

Following last week's public-sector pay cuts in Ireland, Mr. Elderfield has agreed to take a 15 percent pay cut on his planned annual salary of 400,000 euros ($570,000), leaving him with 340,000 euros ($484,000).

Dr. Honohan said Mr Elderfield would also receive 75,000 euros ($107,000) for work carried out before his start date next month.

And the Central Bank also agreed to pay Mr Elderfield a 100,000 euros ($142,000) bonus if he reached "specific goals" after three years.

Dr Honohan said Mr Elderfield's skills "were in very strong demand" around the world and this was the "most cost-effective way to get the job done".

The governor said the Central Bank board had agreed to apply the same public-sector pay cuts introduced in last week's Budget to staff in the organisation.

A BMA spokeswoman said last night: "It is not our policy to discuss publicly the salaries of our employees."

In two-and-a-half years with the BMA, Mr. Elderfield has earned widespread praise for the progress he made in enhancing regulation of banks and insurers, as well as setting Bermuda on a road towards achieveing regulatory equivalence with the European Union's imminent Solvency II rules for the insurance industry.

The Authority's deputy CEO Jeremy Cox will succeed Mr. Elderfield as CEO.