EBS chief executive to leave at end of summer

The chief executive of the EBS building society Ted McGovern is to leave the position at the end of the summer. Mr McGovern (53) informed the board of his decision to resign approximately two weeks ago but has been considering the move since at least August of last year, according to a source close to him.

The source said Mr McGovern, who has held the top position in EBS for more than six years, was looking at a particular new role in his career but could not speak about it at this stage.

Mr McGovern's decision to leave was not the result of the very public row in which the building society became embroiled earlier this year when independent director Ethna Tinney unsuccessfully sought re-election to the board without the backing of her fellow directors, the source said.

Internal EBS board minutes, which entered the public domain during the course of the row, showed serious divisions at board level and a breakdown of trust between certain directors during the early and middle months of 2006.

The terms of Mr McGovern's contract and what length of time it had yet to run could not be ascertained last night. Mr McGovern's total remuneration in 2006 was €759,700.

In a letter to staff yesterday, Mr McGovern said he was proud to have led the EBS during his time with the mutual but that "I have now decided and have informed the board that the time is right for me to leave the EBS and to focus on the next stage of my career, which I have been considering for some time now.

"The time is right for EBS too. There is a reappraising and refocusing job to be done, which has already started ... Fresh faces and new ideas, added to our existing stock of great people, now have the opportunity to drive the EBS franchise to the next level."

Mr McGovern, who came to the EBS from the ICS Building Society, where he had also held the position of chief executive, said assets were up 230 per cent over his period at the society. "We've branched out into bancassurance and have established a very successful broker business which will write more than €1 billion in mortgage advances this year. Our financial results this year will be excellent, notwithstanding the fact that the marketplace is becoming increasingly competitive."

Mr McGovern said he would be leaving at the end of the summer, by which time "good process will have been made in identifying my successor. In the intervening period I will work with the board to ensure a smooth transition".

Chairman Mark Moran, in a message to staff, thanked Mr McGovern for his significant contribution to the EBS. "Ted will work with us to ensure that the transition phase is as smooth as possible. In addition I intend to work closely with the management team until a new CEO has been recruited," he said.