KEY APPOINTMENTS:STARTING TODAY, the search begins for a new chief executive and a new chairman of Allied Irish Banks (AIB).
The bank is expected to form a subcommittee of the board to lead the search process.
This committee will ultimately be overseen by the National Treasury Management Agency (NTMA), which is acting as a proxy for Minister for Finance Brian Lenihan.
Executive chairman Dan O’Connor will leave in the coming weeks while chief executive Colm Doherty will depart before the year end.
Bank sources stressed yesterday that there would be no golden handshakes for the departing executives.
Mr Doherty is expected to receive whatever the terms of his contract are while it is understood that Mr O’Connor will not receive any compensation.
Mr O’Connor is believed to have been receiving remuneration of €280,000 a year. Mr Doherty had a salary of €500,000, in line with Government guidelines.
Mr Lenihan indicated yesterday that there would be other changes made at management and board level in AIB.
It is not clear if this will include the three public interest directors: Dublin Airport Authority chief executive Declan Collier; ex-tánaiste Dick Spring; and former NTMA chief Michael Somers, who only joined the board recently.
AIB’s other board members are: David Pritchard, chair of its UK arm; consultant Kieran Crowley; Invest Northern Ireland chairman Stephen King; and former Pensions Board head Anne Maher.
Robert Wilmers, chairman and chief executive of MT Bank in the United States, is expected to step down once AIB has offloaded its 22.5 per cent stake.
It remains to be seen where AIB goes for a replacement but it is believed that no internal candidates will be considered.