Speculation mounts Government to ratify Duffy appointment as AIB chief

DAVID Duffy looks set to be named chief executive at AIB in the next week or so with speculation mounting over the weekend that the Government will ratify his appointment later this week.

Mr Duffy — previously with ING Bank and currently a financial consultant in Singapore — would be something of a rare breed, if appointed, being an Irish-born head of one of the country’s leading banks. His name has been in the frame for some time, but as AIB has been effectively nationalised, his — or any other senior management appointment — has to be approved by the Government.

A Department of Finance spokesperson declined to comment at length on the matter, yesterday, beyond confirming that an application had been lodged with the Department, by AIB, and that the Government could give approval or, at least, strong consideration — later this week.

Once approval is granted, it is believed Mr Duffy will be formally unveiled by AIB quickly, so that the group can move on with its restructuring process under its new management.

And, despite recent confusion over what the bank’s new head might be paid — speculation has gone from it being within the €500,000 salary cap for senior banking executives to a figure nearly €200,000 higher than that — it is believed that Mr Duffy’s basic salary will fall within the bankers’ pay cap; although the group’s board is expected to lobby Government to allow their new man to qualify for future long-term incentive schemes for bankers.

AIB is currently being headed up by executive chairman, David Hodgkinson, and has been without a formal chief executive since the departure of Colm Doherty last year. Even after a new appointment is made, Mr Hodgkinson is expected to remain in office, for a period, in the role of non-executive chairman.