Goggin to be paid wage till June 2010

BANK of Ireland chief executive, Brian Goggin, who retired yesterday from his €1 million-plus job, will be paid a salary until June 2010.

As part of his contract, Mr Goggin, whose basic salary is about €1.1m, is entitled to give one year’s notice of his intention to retire.

After 40 years with the bank, he will step down as chief executive in June 2009 but will officially retire from the bank in June 2010.

The bank has already commenced a process to find his successor.

After the announcement yesterday, Bank of Ireland’s share price continued to plunge, by as much as 56%, hovering at around 55c.

When Mr Goggin was appointed chief executive more than four years ago, the bank’s shares were trading at more than €10.

Bank of Ireland governor, Richard Burrows, said the bank was well placed, through the support of the Government, to “continue to serve its customers, to play a full part in the economy and to rebuild value for its stockholders”.

Mr Burrows also praised Mr Goggin, saying he had made a great contribution to Bank of Ireland over a lifetime’s career.

“Brian always had the best interests of the bank at heart and I believe that this has motivated his decision to seek retirement this summer to make way for fresh leadership to take Bank of Ireland through the challenges which lie ahead,” he said.

Mr Goggin said he was very proud of his career in Bank of Ireland but said the most recent period had been “particularly difficult leading the bank through a time of great turbulence in global financial markets”.