ALLIED IRISH Banks (AIB) has confirmed the appointment of David Hodgkinson, former chief operating officer of global bank HSBC, as a director and interim executive chairman of the bank.
The bank said Mr Hodgkinson would lead the group “through this difficult period and manage the process for the appointment of a group chief executive”.
Mr Hodgkinson was chosen as chairman in a process managed by the National Treasury Management Agency, which oversees the Government’s bank rescue plan.
An external candidate is expected to be appointed to the role of chief executive as the Government seeks progressive changes to the culture of the bank.
Mr Hodgkinson will replace Dan O’Connor as executive chairman. Mr O’Connor stepped down after the Government announced the second bailout of AIB last month, saying it would require €10.4 billion in capital – €3 billion more than estimated.
AIB managing director Colm Doherty will step down over the coming weeks.
Mr Hodgkinson will manage AIB through a process that will see it end up in majority Government control as the State takes a shareholding of over 90 per cent.
“My objective is to work closely with all AIB stakeholders to tackle the serious challenges which confront the bank,” he said. “We can take strength from the very strong franchise AIB enjoys in Ireland. Our success in this endeavour is important not only to the bank, but also in restoring Ireland’s economic strength.”
The Government has injected €3.5 billion into AIB and has committed to provide a further €3.7 billion through a rights issue to take place in the coming weeks.
Mr Hodgkinson was a member of the group management board of HSBC from May 2006 until his retirement in December 2008 after 39 years with the bank. Since leaving HSBC, he has been on the advisory board of accountancy firm PricewaterhouseCoopers.
London-based consultants with the firm were hired by the NTMA to liaise with AIB management on the running of the bank after the announcement that Mr Doherty and Mr O’Connor would depart.
