AIB has approached the Government about setting up an incentive plan to retain top executives before the Government starts selling the lender, according to three people with knowledge of the matter.

Even though AIB is still loss-making, it hopes to make a pre-provision profit in 2014, its chairman David Hodgkinson told shareholders at yesterday’s AGM.

AIB has said that pay across the bank will have fallen by about 50% from 2008 levels once a severance programme and on-going cost-cutting measures take full effect.

BANKERS have spent a good portion of the last couple of years trying to convince a jaded populace that they have seen the error of their avaricious ways, but their recent conduct belies any feeble attempts at faux humility.

Finance Minister Michael Noonan’s home village was directly affected by the closure of its three nearest AIB bank branches, which shut yesterday along with 41 others across the country.

Banking’s reputation was already on the floor when along came rate-fixing and money laundering for drug cartels and rogue states to completely destroy the public’s trust, writes Kyran Fitzgerald

If the Government offloads its stakes in Bank of Ireland and AIB, it will only do so for a price much higher than the value of €8bn by the National Pension Reserve Fund, said Finance Minister Michael Noonan.

Dramatic US Senate revelations about shadowy money laundering at HSBC bank have put the spotlight on two of the highest profile figures in the world of Irish finance — Michael Geoghegan, appointed by Finance Minister Michael Noonan as chairman of the Nama Advisory Group, and David Hodgkinson, chairman of AIB.

AIB chairman David Hodgkinson and the finance minister’s Nama adviser Michael Geoghegan are heavily referenced in an investigation into HSBC’s concealing of Iranian banks transactions from American authorities.

AIB is considering writing to former directors and asking them to voluntarily repay part of their pension entitlements.

Bank of Ireland became the first Irish bank to meet its divestment target set under the country’s bailout from the EU and IMF yesterday by completing sales of €10bn worth of loans 18 months ahead of schedule.

As head of the Irish Bank Officials Association, Larry Broderick is charged with the unenviable task of negotiating the best deal possible for 2,500 AIB workers while keeping compulsory redundancies off the table, writes Kyran Fitzgerald

AIB is giving 39 of its finest art pieces worth over €5m back to the taxpayer.

AIB is donating 39 of its most valuable pieces of art to the State, including three works by Irish artist Jack B Yeats.

Shedding 2,000 jobs, restoring shaken morale, changing a disastrous culture and rebuilding the bank’s battered business are just some of the difficulties incoming AIB chief executive David Duffy will have to overcome, reports Kyran Fitzgerald

AIB HAS formally named David Duffy as its chief executive, confirming media speculation.

The new chief executive of bailed-out Allied Irish Banks (AIB) will earn the Government cap of half a million euro a year.

The AIB has appointed a new Chief Executive.

AIB has bowed to Government pressure and performed a U-turn on its decision not to pass on the ECB mortgage interest rate cut.

ENDA KENNY has ordered the Financial Regulator to report to the Government on the need for enhanced powers after Irish banks snubbed an appeal to pass on reduced interest rates to mortgage holders.

Ireland’s three biggest banks have told the Government they will not pass on the European drop in interest rates to tens of thousands of struggling mortgage holders.

The AIB Executive Chairman David Hodgkinson has said the European Central Bank interest rate cut will not be passed on to customers.

Representatives of the country's three biggest banks are today appearing before the Government's Economic Management Council (EMC).

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.

THE acting head of AIB has said the bank could consider recommending to the Government that its new chief executive be paid nearly €200,000 more than the agreed €500,000 cap on bank executives pay.

AIB has said that it has not yet engaged in debt forgiveness for any mortgage holder, but would be keen to see the measure used in the future.

A €6 BILLION bailout for householders in mortgage arrears that would allow those hopelessly indebted to walk away from their home loans would solve the current crisis, according to the economist credited with predicting Ireland’s property demise.

ALLIED IRISH BANK’S “culture was wrong and we are now setting down new principles for everyone in the bank from boardroom to branches” — the bank’s executive chairman David Hodgkinson told the Annual MacGill Summer School on Thursday.

The Government has shot down a request by the AIB executive chairman for the appointment of an independent assessor to set bankers' wages.

A PAY czar should be appointed by the Government to set banker salaries and financial incentives should be created to attract new blood to the troubled industry, according to the head of Allied Irish Bank.

ALLIED IRISH BANKS hopes to start raising funding on the external market now that the Government has capitalised the lender to ensure its balance sheet is proofed against further economic shocks.

The executive chairman of AIB has called on the Government to appoint a pay tsar to set bankers' wages.

THE nationalisation of AIB has been approved by the bank’s shareholders, despite opposition from the floor at its EGM in Dublin yesterday.

The AIB executive chairman David Hodgkinson has said after today the board of the bank will no longer include members appointed prior to 2009.

The Executive Chairman of AIB David Hodgkinson is again expressing deep regret for the crisis in the bank.

HUNDREDS of house repossessions may not go ahead following a landmark ruling that places a question mark over the entire repossession system since 2009.

ANY mortgage debt forgiveness scheme implemented by AIB could involve the bank taking a share in the ownership of the houses of those in arrears, it emerged yesterday.

AIB has released half year results showing profit before tax of €2.2bn to the end of June.

ALLIED IRISH BANKS PLC executive chairman David Hodgkinson said he aims to complete the bank’s plan to cut jobs by December 2012.

AIB has approached some candidates to take on the role of chief executive but they turned down an offer due to pay.

A GOVERNMENT pay cap of €500,000 for AIB’s new chief executive could be broken with Taoiseach Enda Kenny admitting he may sanction the salary in an exceptional case.

Government Chief Whip Paul Kehoe has said that the Finance Minister would think long and hard before allowing a bank to breach the salary cap for their chief executives.

The head of a group representing bank workers said today that it "beggars belief" that AIB could look at offering their new chief executive more than the Government-imposed salary cap.

A senior official at AIB is hinting they could have to breach the Government imposed salary cap in the hunt for a new chief executive.