Ex-Permanent TSB chief executive got no extra compensation

Bank says David Guinane’s High Court action was struck out without order being made

Permanent TSB, which is 75 per cent State-owned, says it made a “contribution to the vouched legal expenses” of David Guinane. Photograph: Alan Betson

Permanent TSB, which is 75 per cent State-owned, says it made a “contribution to the vouched legal expenses” of David Guinane. Photograph: Alan Betson

 

Former Permanent TSB chief executive David Guinane received no additional financial compensation from the bank as part of the settlement of his legal action on Tuesday.

In a statement to The Irish Times, PTSB noted that the High Court action taken by Mr Guinane had been struck out without any order being made. Mr Guinane had claimed he was entitled to a severance payment of more than €866,000 following his departure from the bank in 2012.

“Permanent TSB has made no additional compensation payment to Mr Guinane and Mr Guinane’s senior counsel, Shane Murphy, stated to the court that Mr Guinane withdrew the criticisms which he had made of the chairman of Permanent TSB Group Holdings plc, Mr Alan Cook, in his evidence [from] last week,” the bank said.

“Permanent TSB confirms that there is no change to the payment in lieu of notice and statutory redundancy (circa €280,000 combined) which Mr Guinane received in 2012 when he was made redundant. The matter is now closed.”

PTSB, which is 75 per cent State-owned, said it made a “contribution to the vouched legal expenses” of Mr Guinane and was picking up its own legal costs.

No comment was available from Mr Guinane.

Contractual right

In the proceedings against PTSB, Mr Guinane, who worked for the bank for more than 25 years, alleged breach of contract and that the bank had denied him fair procedures during his departure.

He claimed he had a contractual right to a payment, estimated at €866,000, under the bank’s voluntary severance scheme.

Mr Guinane further claimed that his reputation was damaged by his former employer and that the bank acted in breach of its duty towards him and was negligent. He also claimed damages, including punitive and exemplary damages.

PTSB denied the claims and pleaded that Mr Guinane had received what he was entitled to when he was made redundant.

Mr Guinane had been chief executive of PTSB when it was part of the publicly listed Irish Life & Permanent Group.

After the group was recapitalised by the State for €4 billion in 2011, the banking section was separated from Irish Life under a restructuring. As part of that process, all senior positions in the bank were advertised.

Mr Guinane applied for the chief executive position but it was given to Welsh banker Jeremy Masding in January 2012. Mr Guinane left PTSB on February 20th, 2012.