Lenihan demands review of Nationwide board and management

The board and management of Irish Nationwide Building Society must be reviewed, Finance Minister Brian Lenihan said today.

Mr Lenihan was speaking after he briefed today’s Cabinet meeting on issues around the payment of a controversial €1m bonus to chief executive Michael Fingleton just weeks after the Government protected the bank’s deposits with a state guarantee scheme.

The minister last night met with ’public interest’ directors on Irish Nationwide’s board, Adrian Kearns and Rory O’ Ferrall, on the matter.

“The minister has asked the two directors to convey to the board of Irish Nationwide his view that the board and management team must be reviewed having regard to the current market position, the plans of the Society, and the appropriate mix of skills for the future of the society,” a spokesman said.

Board members have been called into the Department of Finance next week to discuss their future plans for the financial institution with Mr Lenihan.

The minister also asked the two public interest directors to carry out an investigation into Mr Fingleton’s bonus payment and to report back within a month.

Earlier today, Tánaiste Mary Coughlan said the payment of the bonus had caused ’annoyance’ within Government.

Irish Nationwide said the reward was agreed by the board before the state guarantee scheme came into place in September.