MINISTER FOR Finance Brian Lenihan is expected to meet the board of Irish Nationwide today to finalise management and boardroom changes, with a decision anticipated on the departure of chief executive Michael Fingleton.
Government sources said on Monday that they expected Mr Fingleton, who has agreed to repay his €1 million bonus for 2008, to step down “within days”, following a meeting between the Minister and the board earlier that day.
Mr Lenihan is scheduled to depart for an Ecofin meeting of EU finance ministers in Prague tomorrow but is expected to meet the board of Irish Nationwide again before his departure.
It is anticipated that Mr Fingleton will remain on at the building society for a transition period while a new chief executive takes over in that role.
Irish Nationwide envisaged in its business plan, which was submitted to the Minister last year, Mr Fingleton being involved in the team in charge of shrinking the building society’s loan book during two-year Government guarantee.
Irish Nationwide’s auditors, KPMG, are due to sign off on the society’s 2008 accounts in the coming days. The building society is expected to set aside close to €500 million to cover losses on its €12 billion loan book, which would push the building society into the red for the year, compared with a profit of €391 million in 2007.
Danny Kitchen, one of Irish Nationwide’s board members who met the Minister on Monday, had been lined up to replace Mr Fingleton as chief executive.
However, he declined the position after the salary for the job was capped at €360,000 by the Government-appointed bank remuneration committee last month.
The committee’s report said the restrictions on bankers’ pay can be relaxed in “exceptional situations”. Such a move could allow Mr Kitchen to take up the role.
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