AIB appointment signals preparation for possible flotation

State-owned AIB has appointed Catherine Woods as its senior independent non-executive director.

Ms Woods joined the board in October 2010 and is also chairwoman of the audit committee and a member of the bank’s risk committee.

The role of senior independent non-executive director was vacant at AIB, which is listed on the Irish Stock Exchange’s junior ESM market in Dublin.

Ms Woods’s appointment is seen as significant in the context of the Government’s plans to return AIB to private ownership, possibly via an initial public offering (IPO). By filling this important role in its governance structure, the bank is preparing the ground for an IPO.

The precise timing of an IPO is unclear with the recent resignation of chief executive David Duffy casting doubt on whether a return to the stock market is possible this year.

The Government recently appointed Goldman Sachs to advise it on capital restructuring actions at AIB. This work is being carried out on a pro bono basis and is expected to take six months to complete.

Ms Woods is also the finance expert on the adjudication panel established by the Government to oversee the rollout of the National Broadband Scheme.

In addition, she is a former vice president and head of the European banks equity research team at JP Morgan.