Liz McManus (Wicklow, Labour)
Link to this: Individually | In context

Question 44: To ask the Minister for Finance his views on the statement from an association (details supplied) expressing concerns regarding the internal appointment of directors at a bank; the reason he allowed these appointments to proceed when his preference was for an external candidate to become chief executive of the bank; his further views on the statement by the association that these internal appointments send out the wrong signals to the international investment community; and if he will make a statement on the matter. [44867/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

As far as I am aware the Corporate Governance Association of Ireland expressed concerns about the appointment of an executive chairman in that Bank despite the fact that the Combined Code requires that the two top roles in a company, the chairman and the chief executive should be filled by different people. I share these concerns but would like to make clear that this arrangement has been agreed to purely as an interim measure and it is not foreseen that this situation will persist beyond the short term.

Regarding the appointment of internal candidates, I would remind the Deputy that this is a matter for the bank in the first instance. I am aware that a search to fill the position of Chief Executive Officer of the specified bank was carried out using professional recruitment consultancy services, and that this search was extensive and international in nature.

The Deputy also raised the question of signals being sent to the international investment community. In response, I would point to the signals being sent by this Government that it is far from business as usual in the Irish banking sector. Reform of the regulatory structure is being advanced and as the Deputy will be aware I have intervened in the matter of the level of salary for the incoming managing director of the particular bank.