Sheehy is fifth bank chief executive to fall in clear-out

AIB’S Eugene Sheehy became the fifth bank chief executive to step down since December in the latest clear-out at the banks. His successor faces a massive reduction in pay for the role, given the Government’s plans to cap salaries for chief executives at banks receiving state aid at €500,000.

Mr Sheehy, 54, was paid €2.4 million in 2006 and €1.15m last year. Last month he said there was a big job to be done at the bank adding that he was totally committed to leading the bank over the next few years to ensure it recovers.

He had been coming under increased pressure to resign following reports AIB board members and the bank’s institutional shareholders were trying to force him to step down ahead of the AGM.