Doherty’s €3m payoff a ‘hammer blow to reform’

AIB’s decision to give ousted managing director Colm Doherty more than €3 million just to quit, at a time when the bank had received €20.5 billion in taxpayer bailouts, has been described as a “hammer blow” to reform.

The Irish Bank Officials Association (IBOA), which represents low-level bankers facing miniscule redundancy payoffs if they lose their jobs due to cutbacks, made the comment after revelations the senior banker was paid the huge sum.

Details, set to be confirmed in AIB’s 2010 annual report, show Mr Doherty received a salary of €432,000 for the 11 months he worked last year and a “termination payment” of €707,000 in lieu of a year’s notice.