IRISH NATIONWIDE signalled yesterday that its chief executive Michael Fingleton had sought to retire at the end of February 2008 but was persuaded by the board of the building society to remain on as chief executive for another year until a successor was found.

Mr Fingleton was again on the verge of retirement in recent weeks as the building society had found his replacement, reportedly an executive who was “international but known in Ireland”.

However, it was reported that the executive, who had agreed to take over as chief executive from Mr Fingleton, later decided not to take the job after the Government capped the salary at €360,000.

The Irish Timesunderstands that his chosen successor was Irish Nationwide board member Danny Kitchen, and that the society had offered a salary of €700,000.

Mr Fingleton came under further pressure from the Green Party yesterday to resign over his €1 million bonus, paid just weeks after the Government guarantee was introduced last year, and his pension deal involving the society and a fund of €27.6 million.

The bonus and pension arrangements will be the subject of further heated debate later this week when Minister for Finance Brian Lenihan meets the society’s board.

Repeating his earlier criticism that Mr Fingleton had run Irish Nationwide “like his own personal fiefdom”, Senator Dan Boyle, the Green Party finance spokesman, said yesterday that the Irish Nationwide boss personified all that was wrong with Irish banking.

“That he has remained so long in position while others have fallen on their swords is a complete mystery. He should not continue in that position of trust in what is, after all, supposed to be a mutual society,” said Mr Boyle.

Mr Fingleton was the highest-paid boss of a guaranteed Irish financial institution last year, with a total pay package of €2.34 million. His pension arrangements could be worth even more when he retires from Irish Nationwide.

Pension industry sources said that the €27.6 million pension deal could net Mr Fingleton a tax-free lump sum of €1.5 million, or 1.5 times his final annual salary, when he retires due to his 38 years’ service with the building society.

In addition, he could receive between €1.6 million and €2.1 million a year in regular fixed payments throughout his retirement.

Under this deal, Mr Fingleton could receive almost as much every year in retirement as he did during the height of the boom.