Fine Gael questions timing of Nationwide's €1m bonus for Fingleton

FINE GAEL has questioned the timing of the controversial €1 million bonus payment to chief executive Michael Fingleton so early in Irish Nationwide Building Society’s financial year.

The party’s deputy finance spokesman Kieran O’Donnell also questioned why Minister for Finance Brian Lenihan had not “taken the same line with Mr Fingleton” that he had with Irish Life Permanent (ILP) chief executive Denis Casey “whose removal was far more forceful”. Mr O’Donnell said there was “no great difference” between the cases of the two societies.

The Minister told the Fine Gael TD he was “correct to draw the comparison but I behaved in exactly the same way on this occasion”.

During Dáil finance questions Mr O’Donnell said “the year end for Irish Nationwide building society is December 31st” but Mr Fingleton appeared to have been paid “well prior to that date”.

Mr O’Donnell asked if the financial institution would have been able to pay the bonus had the Government’s guarantee scheme not been put in place.

He also wondered “was the payment of the bonus brought forward to a date earlier than when the person in question was entitled to receive it”.

The Limerick East TD compared Irish Nationwide and ILP and said the removal of the latter’s chief executive was “far more forceful, as the Minister indicated his expectation that the board would live up to its responsibilities.

“When it did not the Minister dragged in the members and made certain that Mr Denis Casey stood down. Why are you not taking the same line with Mr Fingleton?”

Mr Lenihan said of the ILP case that “I went to very great lengths during those board meetings to make clear that I would not be drawn out on whether I had indicated to any directors or the board my attitude regarding his [Mr Casey’s] status”.

Mr O’Donnell asked if the Minister would tell the Irish Nationwide board that he “expects them to live up to their responsibilities”.