Anglo Irish Bank's chief operating officer, Mr Tiarnan O'Mahoney, has tendered his resignation and will leave the bank at the end of the year.
Mr O'Mahoney (45) has been with the bank for 20 years and had been viewed as the leading contender to succeed Mr Sean FitzPatrick as the bank's chief executive but lost out to Mr David Drumm earlier this year.
Speaking to The Irish Times yesterday, Mr O'Mahoney said he believed his decision was a good one for himself and for Anglo Irish Bank.
"The succession decision has been made. This is not a protest against David Drumm's appointment but I have no enthusiasm for doing the same job that I have been doing for the past 10 years for the next 10," he said.
Mr O'Mahoney said he is not going to another financial institution and is considering becoming active in the capital markets and perhaps will seek to raise equity in the new year.
"This is the best decision for all involved. I am not walking out in a fit of rage. We will all remain friends," he said.
In a statement, Mr FitzPatrick said the two other contenders for the chief executive's job, Mr Tom Browne and Mr John Rowan, will be remaining with the bank.
Mr FitzPatrick paid a warm tribute to Mr O'Mahoney. "Tiarnan and I have soldiered together for almost 20 years and he has played a most critical role in building Anglo over that time.
He will always have the bank's and my personal support, friendship and good wishes for the future," he said.
Mr Drumm (37) will assume the chief executive's role in January 2005 while Mr FitzPatrick will become chairman.
Mr O'Mahoney has held a range of positions at the bank during his career, including head of treasury, and was involved in the establishment of its private banking business.
Last year his total remuneration amounted to €1.5 million, including a bonus of €593,000.
According to the bank's last annual report he held 726,934 ordinary Anglo Irish Bank shares, which at yesterday's closing price of €16 are valued at €11.6 million.
Mr O'Mahoney also holds a further 249,188 share options.
