Bank of Ireland made a €2.3 million severance payment and a €400,000 pension fund top-up to its former chief executive Michael Soden, a year after his sudden departure from the bank when it emerged that he had accessed an "adult" website in his office.
Details about the deal were contained in the company’s annual report published today. The bank said the payment was made "in settlement of potential litigation by Mr Soden against the Group".
Mr Soden was only two years at Bank of Ireland before he suddenly resigned after bank governor Laurence Crowley raised with him his use of the website, which Mr Soden said he had strayed onto.
The report shows the current chief executive Brian Goggin was paid a total of €1.9 million in the last financial year.
In the report, Mr Goggin said the immediate priority was to streamline the retail business in Ireland which would result in a reduction of 2,100 in the group’s staff numbers.
He said the bank will achieve an annual reduction in costs of €120 million over the next four years.
"The estimated rationalisation and implementation costs associated with this programme will amount to €210 million over the period in addition to capital expenditure of €40 million," he added.
Mr Goggin said the Irish economy is continuing to outperform with annual growth of about 6 per cent forecast for the medium term.
"Consumer spending, underpinned by strong employment growth, low inflation and interest rates, together with favourable demographics, are the key drivers of this growth," he said.