Bank of Ireland’s new chairman Patrick Kennedy — currently deputy chair but best known as a former chief executive at bookie Paddy Power — is in line for a pay hike of up to €364,000 if he is to be paid the same as outgoing chairman Archie Kane.
Mr Kennedy — who has been on the bank’s board since the summer of 2010 and deputy chairman for the last three years — has long been the favourite to succeed Mr Kane, who Bank of Ireland said will stand down in July.
Mr Kennedy is currently paid €126,000 and will likely match most of the €490,000 that Bank of Ireland pays Mr Kane. The Government owns a stake of over 13% in Bank of Ireland.
According to the bank’s annual report, Mr Kane in 2017 was paid €394,000 in “non-pensionable salary”; an additional €59,000 under a consultancy contract with Bank of Ireland in the UK; and “also receives an accommodation, utilities and car allowance of €37,000 per annum”.
Newly-appointed chief executive Francesca McDonagh, who started work in early October, was paid €246,000 last year. No performance bonuses were paid to any director last year.
Shares in the bank have fallen from €8.15 in late January to €7.47, valuing the lender at €8.15bn. The bank’s annual shareholders’ meeting is next Friday.
Mr Kennedy ran Paddy Power up to 2014. Paddy Power subsequently agreed to buy UK rival Betfair. Previously, he worked at foods firm Greencore as the chief financial officer and was a non-executive director at drugs firm Elan.
On Mr Kane, Patrick Haren, the senior independent director on the bank’s board, said: “Archie leaves the bank in a strong and sustainable position and the board would like to wish him well for the future.”