AIB to submit proposals on new chief

AIB is expected to present Finance Minister Michael Noonan its proposals regarding its next chief executive, later this week.

Media reports, yesterday, suggested the successful candidate will receive a pay packet of around €1 million.

However, this apparently would see the appointee still ‘only’ getting a state-imposed basic salary of €500,000; but they could also avail of certain perks like share offers which could nearly double their remuneration package.

Earlier this year, the Covered Institutions Remuneration Oversight Committee — which advised on the initial €500,000 salary cap for senior banking executives last year — recommended a €690,000 salary cap in the case of AIB.

However, while AIB has made a submission to Government for that latter recommendation, it is thought the minister will only allow a higher salary in an exceptional case.

Mr Noonan will discuss the matter with AIB’s board once he receives the proposals. A spokesperson for the minister said that receipt of those proposals is expected “in the coming days”.

While AIB was remaining silent on the issue, yesterday, the bank has said that it hopes to have a new chief executive in place “within weeks”.

No further formal comment has been made on the process, but it has been speculated that either David Duffy, formerly of ING bank, or former HSBC man, Brendan McDonagh, will be appointed to the role.

Meanwhile, AIB has appointed Ronan O’Neill, currently the bank’s head of corporate and commercial banking, as managing director of its British-based operations.

Mr O’Neill, who has been with AIB since 1979, headed the group’s corporate banking operations in Britain for five years from 1997.

Mr O’Neill replaces Nick Treble, who will now take on responsibility for initiatives related to the development of the bank’s British business.