B of I has yet to sanction severance deal for Soden

Bank of Ireland's court of directors has still to sanction a severance package for its recently departed chief executive, Mr Michael Soden, who was paid €1.6 million last year. A spokesman confirmed yesterday that negotiations between Mr Soden and the bank's directors were ongoing.

According to the bank's annual report, Mr Soden was paid a salary of €900,000 in the 12 months to the end of March 2004. He received a €554,000 performance-related bonus, a further €16,000 in other remuneration, €32,000 in benefits and €92,000 in pension contributions. In the previous year, Mr Soden received a package worth a total of €1.3 million.

During the year Mr Soden was granted 200,000 share options, bringing to 461,000 the options he holds over company shares. These options could be exercised on dates between November 2004 to June 2013 at prices ranging from €10.54 to €12.50. Yesterday Bank of Ireland shares closed at €10.68 in Dublin.

Mr Soden had been at Bank of Ireland since 2002. He resigned after he was found to have breached the bank's internet policy by accessing a site that had links to material of an adult nature.

Last week, the bank appointed Mr Brian Goggin, who headed its asset management business, as its new chief executive. He is expected to receive a similar pay deal to Mr Soden, worth around €1.6 million.

According to the bank's annual report, Mr Goggin was the second highest paid executive at the bank after Mr Soden last year, receiving a package of €1.1 million, up 50 per cent on the previous year.

His €500,000 salary was boosted by a €525,000 performance-related bonus. He received other remuneration of €12,000, benefits worth €27,000 and pension contributions of €51,000.

The bank's governor, Mr Laurence Crowley, was paid €328,000, up from €312,000 in the previous year. This included a €300,000 salary and pension contributions worth €28,000. Deputy governor Mr Richard Burrows received a salary of €90,000.

In total the bank's directors shared payments worth €4.46 million. Bank of Ireland's former chief executive, Mr Maurice Keane, was the highest-paid non-executive director, receiving director's fees and other pay totalling €100,000.