Fingleton yet to repay €1m to Irish Nationwide

FORMER Irish Nationwide Building Society (INBS) chief executive Michael Fingleton has failed to hand back the €1 million bonus awarded to him last year as part of his 2008 salary package.

Sources close to the society confirmed last night the money has still not been returned following disclosures earlier this month that despite his agreeing to hand it back the money was still in his bank account.

Finance Minister Brian Lenihan was angered by revelations that the former INBS chief was paid a €1m bonus last November, weeks after the bank guarantee was introduced.

Mr Lenihan made it clear he saw the payment as inappropriate.

He instructed his officials to write to the society and to instruct the directors to demand that Fingleton hand back the bonus.

When it emerged in early September that the money had not been returned, a spokesman for Mr Fingleton said “outstanding issues” had to be dealt with before the money could be returned.

Those outstanding issues are understood to be linked to a report into Mr Fingleton’s overall pay from the society. Sources close to the society confirmed last night that the €1m lump sum bonus is still outstanding and were unable to say if or when the money would be returned.

The Department of Finance has distanced itself form the row at this stage and said it was a matter for the board to resolve the issue.

Mr Fingleton also walked away from the society he served for over 30 years with a substantial €28m pension deal in his back pocket.

He has let it be known there is no legal obligation on him to return the bonus.

Meanwhile, following the collapse of the Irish banking system, speculation is growing that INBS could be merged with EBS Building Society to form a “third force” to compete with Bank of Ireland and AIB.