STAFF AT Irish Nationwide had loans totalling €43 million with the building society during 2009 after the financial institution wrote off €3.2 million which it doesn’t expect to be repaid.
The loans, which were disclosed in Irish Nationwide’s 2009 report, are owing by individuals who were employees of the building society “at any time during the year”.
Michael Fingleton, the former chief executive of the building society, had a loan of €1.3 million which he repaid after his resignation at the end of April 2009.
Staff loans were down from €49 million in 2008 when the building society set aside €1.5 million to cover possible losses on the debts. Employee numbers have risen from 385 to about 420.
Gerry McGinn, who replaced Mr Fingleton as chief executive, was paid €220,000 for just over six months’ work. He joined in June 2009, six weeks after Mr Fingleton left the building society.
John McGloughlin, who became chief financial officer of the building society on April 27th, 2009, received pay of €154,000 for the remainder of the year.
Directors’ fees amounted to €403,000 for 2009, compared with €246,000 the previous year.
Chairman Danny Kitchen received €174,000, including €53,000 for acting as chief executive between Mr Fingleton’s departure and Mr McGinn’s arrival.
Mr Fingleton was paid €221,000 for the first four months of the year as chief executive. His long-serving finance director, Stan Purcell, who resigned last month, received €385,000 for the year.
The Government-appointed directors on the Irish Nationwide board, Rory O’Ferrall and Adrian Kearns, each received €55,000.
Three former directors of Irish Nationwide - ex-chairman Michael Walsh, David Brophy and Terry Cooney who all resigned during the first half of 2009 - earned fees totalling €58,000, compared with €206,000 the previous year.
Another board member, Sean Carey, received €47,000, while a new director on the board, Roger McGreal, received fees of €14,000 for just over three months after he was appointed last September.
Deposits held by directors fell to €224,000 from almost €3 million a year earlier, which included deposits owned by Mr Fingleton.
Irish Nationwide said it has no plans to wind down the building society but must cost this as an option under its restructuring plan being submitted for EU approval.
It has €4.8 billion in debt maturing over the next 12 months which it said it will repay using cash swapped for National Asset Management Agency bonds at the European Central Bank and by issuing new Government-guaranteed bonds. The society is selling about €8.7 billion in loans to Nama. Of these, some €4.6 billion are in the UK (including €2.9 billion in London), €3 billion in Ireland and €1.1 billion in continental Europe. Irish Nationwide provided guarantees of €58.9 million to Nama. The building society paid €19 million in fees to the Government for funding raised using the State bank guarantee, which compared with €4.8 million for 2008.
