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AIB has started looking for its new boss

David Duffy confirmed he was leaving on Monday.

Image: Photocall Ireland

Updated 21 January, 5pm

THE SEARCH FOR the next CEO of Allied Irish Banks Plc has already started.

Current chief, David Duffy, confirmed that he is stepping down from the job this week.

“David Duffy has informed the Board of his decision to step down as CEO and Executive Director to pursue a career opportunity overseas,” a statement from the bank said on Monday.

Chairman Richard Pym held a meeting with the Finance Minister today to discuss the recruitment process.

Following the meeting, Michael Noonan said they agreed that it was in AIB’s interest that the process would begin “without delay” — with a view to having “someone with the calibre, skills and drive to lead AIB in place as soon as possible”.

A recruitment firm will be hired to help in the search and selection process. The bank has also promised to keep the Department of Finance updated on progress.

Noonan says the chairman hopes to be in a position to recommended the new boss to him “within the coming months”.

While this process is underway Mr Pym assured me that AIB would continue to drive forward with its plans and highlighted the strengths of the management team that is now in place.

“My officials and their advisor Goldman Sachs International, will continue to work with the bank’s management team on developing our plans to restructure its capital base and lay out a roadmap that will see AIB begin to return cash to the State,” he concluded.

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Duffy has been with the bank for four years, and has served as both Executive Officer and CEO.

He is set to remain in position as the board recruits a successor, and a final departure date is yet to be agreed.

“I am very sorry to see David leave AIB. During David’s tenure as CEO the bank has been transformed from an organisation in difficulty to one which returned to profit in the first half of 2014 and which is well positioned to deliver on its strategic objectives to customers and shareholders,” Pym said on Monday.

Duffy, meanwhile, said his time at the bank had been “immensely rewarding both professionally and personally”.

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“The bank is well positioned to contribute to Irish economic recovery and to serve customer needs,” he said.

“Having returned to profitability, received approval of the Bank’s Restructuring Plan and passed the recent ECB/EBA Comprehensive Assessment, I believe now is the right time for a new CEO to lead the bank through the next phase of its recovery and growth and a multi-year process of returning capital to the Irish State.

The Board, new leadership team and all members of staff have worked tirelessly to bring the bank back to a position of stability and growth and I am thankful for the support I have received.

David Duffy

Finance Minister Michael Noonan revealed last week that the government has hired Goldman Sachs to advise it on how to “optimise the return on AIB where more than €20 billion of taxpayers’ money has been invested”.

He said the bank had undergone a major transformation under Duffy’s stewardship.

“The extensive restructuring required is largely completed and the bank has significantly improved its relationship with new and existing customers,” he said.

“The bank has been returned to profitability and passed the recent ECB Comprehensive Assessment. The bank is now a very valuable asset for the Irish taxpayer.

Mr Duffy has built a strong and capable management team in the bank and the outlook for the bank as stated in its most recent trading update to the market is very positive.

Read: They’re back: Bank executives to face TDs on mortgage restructuring

About the author:

Daragh Brophy

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