Fingleton to step down from Nationwide post

Irish Nationwide’s long-time chief executive Michael Fingleton is to leave the company at the end of April, it was announced today.

The veteran banking boss handed back a €1m bonus after it emerged it was signed off just weeks after the Government stepped in with the bank guarantee scheme.

Mr Fingleton agreed to hand back the one-off payment last Friday following sustained pressure.

Irish Nationwide praised the outgoing chief executive, who is widely credited with growing the building society over the last four decades to one of the country’s major lenders.

“The board has been aware for some time that Mr Fingleton was seeking to retire and intended to do so on February 28, 2009 on completion of his extended contract,” Irish Nationwide said in a statement.

“He had deferred his retirement to the end of this month to facilitate the society following the resignation of Dr Michael Walsh as chairman.”

The board confirmed Mr Fingleton will retire on April 30.

“The board wishes to thank Mr Fingleton for the enormous and unique contribution he has made to the society over the past 37 years and wish both Michael and his wife Eileen many happy years of retirement,” the company said.

Mr Fingleton was given the €1m bonus just weeks after the Government bank guarantee scheme was introduced last September but Irish Nationwide claimed the reward had been approved months prior to the introduction of the protection.

Two weeks after the bonus was publicly revealed Mr Fingleton said he would hand it back.

While the building society insisted the hunt had been on for a new chief executive for the last four months, the board have been called in to a series of meetings with senior Department of Finance officials and it is understood pressure has been heaped on top executives to speed up the search.

Boardroom banking positions in Irish Nationwide will also be restructured and senior board member Daniel Kitchen will become non-executive chairman.

As the search for a new Chief Executive continues, Mr Kitchen will also take on the role.

The Irish Nationwide Board also proposes to amend the rules at the forthcoming AGM to increase the number of directors from eight to 10.