Soden severance deal not finalised

DETAILS of former Bank of Ireland chief executive Michael Soden’s severance package will not be made public until next year, the bank said yesterday.

Talks in relation to Mr Soden’s pay deal are still ongoing but their outcome will only be released in the bank’s next annual report, which is scheduled for publication next June.

Mr Soden, who resigned in May after he breached bank guidelines by using his work computer to access internet sites containing adult material, was paid a total of €1.6 million in his last full year in charge. Mr Soden received a basic salary of €900,000 but was entitled to a performance-related bonus of €554,000, as well as pension and other benefits. His total remuneration in the year to March 2004 was 20% higher than the previous year.

The bank also granted Mr Soden a series of share options that would allow him to buy bank shares at a discount to the market price, subject to meeting certain requirements. The bank declined to comment on details of Mr Soden’s entitlements in light of his decision to resign.

New chief executive Brian Goggin, who was appointed to the top job less than a week after Mr Soden’s unexpected departure, has agreed a €2.4m pay deal that will see him receive a basic salary of €1m per year. Mr Goggin also stands to make a further €720,000 in bonus payments if he reaches certain targets.

The disclosure of payments made to Mr Soden will be necessary under reporting rules governing publicly-quoted companies that were amended in recent years to force disclosure of individual directors’ salaries.