Lenihan confirms B of I chief to step down 'within weeks'

 

The chief executive of the Bank of Ireland Brian Goggin is to step down within the next three weeks, the Minister for Finance Brian Lenihan confirmed tonight.

Mr Lenihan also signalled last night that the Government will be the ultimate arbiter of the remuneration package of the bank¿s new chief executive, who is expected to be appointed within the same time frame.

Mr Goggin (59) announced in January that he would step down this summer, a year earlier than his due retirement date of 2010. He was appointed to the position in 2004.

The confirmation last night that he will leave by the end of this month or in early March follows the controversy last week over his comments that his earning in 2009 would still be in the region of €2 million notwithstanding the Government¿s decision to provide Bank of Ireland with €3.5 billion in recapitalisation funds to ensure it retained liquidity.

Mr Lenihan was speaking during the Dáil the debate on the Labour Party motion opposing the new pension levy on public sector employees. In the course of his response to the motion, Mr Lenihan said that Bank of Ireland would have a new chief executive
within three weeks. He added that the salary of the new executive would be significantly less than the €2 million salary Mr Goggin expects to receive this year.

Mr Lenihan spoke with Bank of Ireland chairman Richard Burroughs today, who confirmed to him that Mr Goggin would step down within three weeks.

Earlier, the Minister told the Fianna Fáil parliamentary that the Government would decide the remuneration levels of the new CEO.

Mr Lenihan was briefing TDs and Senators on the bank recapitalisation plan.