Bank of Ireland chief executive Brian Goggin is to retire this summer, it was announced today. The search for his replacement is already underway, according to the bank.
It said the search would include both external and internal candidates.
In a statement this morning, Mr Goggin said he was “very proud” of his 40-year career with the bank.
“The most recent period has been particularly difficult leading the bank through a time of great turbulence in global financial markets,” he said.
“An important milestone was reached in ensuring the long-term strength of the bank at the end of 2008 with the Government decision to support the recapitalisation of Bank of Ireland.”
He said the recapitalisation would provide the basis on which the future of the bank could be built.
Bank of Ireland governor Richard Burrows said Mr Goggin “always had the best interests of the bank at heart”.
“I believe that this has motivated his decision to seek retirement this summer to make way for fresh leadership to take Bank of Ireland through the challenges which lie ahead.”
Mr Burrows said the bank was “well-placed” due to the support of the Government through the guarantee scheme to “play a full part and in a wider context and to rebuild value for its stockholders”.
Green Party finance spokesperson Dan Boyle welcomed the news of Mr Goggin's retirement and said he should not benefit from a "golden handshake" severance package.
"At this point in the Irish banking crisis these people would be better taking responsibility for their behaviour, rather than be engaging in hollow, face-saving exercises," he said.
"Irish banks must avoid the payment of any 'golden handshake' severance packages in these situations, especially subsequent to and after the investment of State resources through the recapitalisation of the banks, and any other ownership structure to be determined."
Mr Boyle said it was the payment of such bonus and remuneration packages by Irish banks that have brought about the current crisis.
"The sooner such practices are stopped and those that have benefited are removed from the banking system, the better," he said.