Nationwide meets to discuss Fingleton bonus

The board of Irish Nationwide will meet later today or tomorrow to discuss the issues surrounding the controversy over the €1…

The board of Irish Nationwide will meet later today or tomorrow to discuss the issues surrounding the controversy over the €1 million bonus paid to the society’s chief executive Michael Fingleton, Minister for Finance Brian Lenihan said today.

The bonus was paid after the building society’s deposits were guaranteed by the State last September.

Speaking on RTÉ's Morning Irelandtoday the Minister said he met the two directors - Adrian Kearns and Rory O'Ferrall - of the building society who were appointed by the Government under the guarantee and expects a report back from them on Monday.

“I have voiced my concerns to the members of the board who promote the public interest in that society and I know they’ll do their jobs as members of that board", he said. Mr Lenihan also said his department had written to the building society requesting information about whether or not the €1 million bonus can be returned.

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“My department has written to the Irish Nationwide about that issue and requested further information, when we are in possession of all the information we can assess our options.

“At this stage the suggestion is that the bonus was agreed before the state guaranteed the society but again we have to evaluate the information surrounding that.”

The Minister is concerned about the impact on international markets of suggestions that the guarantee should be withdrawn from Irish Nationwide if it refused to claw back the €1 million bonus. He is due to meet the Irish Nationwide board early next week.

An investigation into Mr Fingleton’s bonus is expected to completed within "one month" Mr Lenihan said.