PASCHAL DONOHOE RESIGNED from Cabinet yesterday and is now headed to a prominent position within the World Bank.

Donohoe is stepping into the role of managing director and chief knowledge officer, a new position which effectively makes him the Bank’s number two.

The outgoing number two, Axel van Trotsenburg, is due to retire at the end of the month, which created the vacancy.

Speaking to RTÉ this morning, Donohoe said he was leaving politics for a “once in a lifetime opportunity”.

It’s also an opportunity that will see him benefit from a sizable pay increase.

As of 2023, van Trotsenburg earned an annual net salary of $475,230 (€410,000).

However, he also received other benefits amounting to $156,529 (€135,000).

This saw van Trotsenburg pocket $631,759 (€545,000) in 2023.

World Bank staff who are not US citizens are typically exempt from paying income tax. 

As of 1 August, 2025, Ministers earn a salary of €212,858, meaning Donohoe is in for a significant pay increase. 

The World Bank was founded in 1944 and its aim is to end extreme poverty and to “and boost shared prosperity on a liveable planet”.

It’s a family of five international organisations that funds development projects via traditional loans, interest-free credit, and grants.

This year, the World Bank has provided close to $120 billion in financing.

It is the largest and best-known development bank in the world and an observer at the United Nations Development Group.

Donohoe’s new job will be US-based as the Bank’s headquarters is situated in Washington DC, meaning Donohoe will be heading stateside for the gig.

According to the World Bank, Donohoe will lead on shaping, managing, and leveraging the institution’s Knowledge Bank.

He is responsible for ensuring the World Bank Group offers its sovereign and private clients “proven solutions”.

He will also be responsible for the group’s strategic engagement with governments, civil society, foundations and philanthropies.

Donohoe will be working closely with the Bank’s President, Ajay Banga, as well as 11 other members of senior leadership.

Banga said Donohoe brings “extensive knowledge of how investors, private sector, financial companies, technology firms, and others operate – from his near decade of experience in the private sector”.