Somers: Salary on offer hindering search for new AIB chief executive

AIB has approached some candidates to take on the role of chief executive but they turned down an offer due to pay.

According to former National Treasury Management Agency chief and AIB director Michael Somers, the government pay ceiling is hindering the lender’s search for a chief executive.

“The money on offer certainly is a major factor because I know they have approached some people and they wouldn’t do for the money on offer,” he said yesterday.

“There are negotiations ongoing.”

He said that the money on offer for such a role is a major factor for candidates.

Mr Somers also said there is a fear of a “dumbing down”, as people will move to the private sector, where the money on offer is better.

Money is a major factor in the financial area and people are measured by how much money they make, he claimed, adding that dynamic people will move on .

People have many options now and can even consider London, where, he said, the financial sector is booming.

In particular, he said accountancy and legal firms are doing very well at the moment.

Recently, it was reported that AIB had spoken to the Department of Finance about whether it can pay its next chief executive more than the Government pay cap of €500,000.

However, Taoiseach Enda Kenny said he would need to see a compelling case before agreeing to breach that ceiling and that he believed there were many competent people around the world who would be happy to do these jobs for that pay rate or for less.

When the bank revealed its new structure and executive team yesterday, David Hodgkinson, AIB’s executive chairman, said the bank would need to offer a market-based compensation package to a new, external chief executive.