A replacement chief executive for the Irish Nationwide Building Society, who had agreed to succeed Michael Fingleton, has told the board he will not now be taking up the position.
RTE News understands the executive told the society he would not be taking up the appointment because of the Government cap on executive pay at the society.
Over the weekend, there were calls on Michael Fingleton to resign following disclosures over his bonus and pension arrangements at the society.
A well-placed source at Irish Nationwide says chief executive Michael Fingleton had sought to retire at the end of February 2008. But the board had asked him to remain for a further year, until a successor was appointed.
It now appears that an executive described as being 'international, but known in Ireland' had agreed a package to take up the role. A pay rate was agreed in the period after the state guarantee scheme for Irish financial institutions came into operation in September.
But newly published guidelines for chief executive pay at banks and building societies covered by the Government's guarantee capped what Nationwide could offer at €360,000 and led to a change of heart. According to the source, Mr Fingleton's successor said he was no longer in a position to take up the role.
The Department of Finance said it would not be commenting. But it did confirm that Finance Minister Brian Lenihan would meet the society this week to discuss Mr Fingleton's pay - including a €1m bonus paid to him in the weeks after the State guarantee and a multi-million euro pension fund.
