Concern over AIB interim role reports
Monday, 9 November 2009 16:26Reports that AIB is planning to appoint an executive chairman on a temporary basis have sparked political criticism.
Labour's finance spokesperson Joan Burton said the move would send out a message of 'no change' in the banks and would be contrary to the principles of good corporate governance.
Reports suggest current AIB chairman Dan O'Connor is set to be appointed executive chairman, ending a stand-off between the Government and the bank's board over the appointment of a new chief executive to succeed Eugene Sheehy. The Government is said to want an outside to take over at the bank.
'Having provided more than €3 billion of taxpayers' money to recapitalise AIB, the Government should continue to insist on the appointment of an outsider to the position of chief executive,' Deputy Burton said.
She added that a Grant Thornton report on corporate governance, commissioned by the Irish Stock Exchange and published earlier this year, strongly recommended that one individual should not be allowed to be both chair and chief executive of any company.
Earlier, Independent Senator Ross said the bank was now proposing, as an interim solution for a year, to appoint an insider as executive chairman. He said that suggestion defied all the rules of good corporate governance, as it would give one man too much power and that should not be allowed.
