THE CHIEF executive of Halifax-Bank of Scotland (Ireland), Mark Duffy, is stepping down and will take up the role of chief executive at a rival Irish financial institution.
Mr Duffy is understood to have approached the bank’s Irish board last August to say that he wished to move on after 16 years with the lender to pursue other interests.
Separately, expectation is building in financial circles that Bank of Ireland chief executive Brian Goggin will leave the bank much sooner than his expected departure this summer.
While Mr Goggin’s performance in broadcast interviews on Thursday is known to have disappointed, it has been known for some time that the bank has already started looking for his successor.
In a statement last night, Bank of Ireland said: “The announcement of Brian’s retirement stated that his departure is due in summer. Circumstances could change the timing, including the appointment of a new chief executive officer.”
It’s understood that Mr Duffy has agreed a multi-million euro pay-out, known as “golden handshake”, under the terms of his departure from HBOS (Ireland) in negotiations with the bank and its parent company, UK bank Halifax Bank of Scotland.
He is expected to leave in April and take “gardening leave” this summer as the terms of his contract prevent him from immediately joining a rival.
He is expected to start his new job at the end of the summer.
Contacted yesterday, Mr Duffy said he had no comment to make.
It is not clear what position Mr Duffy is taking up.
Bank of Ireland is understood to be meeting possible candidates. Within the bank, the head of its Irish operations, Richie Boucher, and the chief executive of its UK business, Des Crowley, have been tipped as potential successors.
The bank is expected to announce Mr Goggin’s successor at the extraordinary meeting of its court, as its board of directors is known, to approve the Government’s €3.5 billion recapitalisation of the bank.
This meeting is scheduled to take place in mid to late-March.
Senior sources within Irish banking ruled Mr Duffy out for the vacant chief executive’s position at Anglo Irish Bank.
HBOS (Ireland) is expected to make an announcement about Mr Duffy’s departure before the bank publishes its 2008 annual accounts on February 27th.
Mr Duffy’s pay-out from HBOS will cause some embarrassment for the bank’s new owners, Lloyds TSB, which has created a new entity, Lloyds Banking Group following its acquisition of HBOS, the UK’s largest mortgage lender.
Former HBOS chief executive Andy Hornby was criticised for receiving a salary of almost £1 million last year at a time when the bank was in receipt of £17 billion in the British government’s recapitalisation plan, as part of its acquisition by Lloyds TSB.
Shares in Lloyds tumbled 32.5 per cent after it said HBOS would post a pre-tax loss of £10 billion for 2008 – £1.6 billion more than it predicted last November.
Mr Duffy joined the bank in 1992and launched the Halifax retail brand in 2006 using the acquisition of the ESB’s chain of shops.
HBOS (Ireland) has loans of €32 billion, of which €22 billion are to businesses.
