Business Irish

Thursday 21 September 2017

Former AIB boss given €3m payout returns with consultancy

John Mulligan

John Mulligan

FORMER AIB boss Colm Doherty -- who was controversially paid €3m the year he left the role -- is poised to offer his services to the business world via a newly established company, the Irish Independent has learned.

Baily Capital, whose registered business address is the same as that of Mr Doherty's home in Howth, Co Dublin, was established recently. One of its primary aims is to engage in the provision of management consultancy services.

Mr Doherty, who turns 54 today, was appointed managing director of AIB in 2009 having been on the board since 2003. He replaced chief executive Eugene Sheehy.

But Mr Doherty resigned in November 2010, stepping down as one of the conditions of a second state bailout.

It later emerged that he'd received €3m during the 11 months of 2010. That included a salary of €432,000 for January-November and €707,000 in lieu of a year's notice when his contract was terminated on direction of the then finance minister, the late Brian Lenihan.

Pension

In addition, Mr Doherty received a further €2m in cash instead of a contribution towards his pension scheme.

Mr Doherty is due to receive an annual pension of just over €300,000 when he hits 65.

Revelations last year of Mr Doherty's remuneration package for 2010 sparked fury. Justice Minister Alan Shatter described such payments as "grossly immoral".

The Department of Finance said at the time that it hadn't signed off on the payments, which Mr Doherty had been legally entitled to under the terms of a contract he negotiated when he took the job in 2009.

AIB is effectively fully state controlled. Last week it reported a €1.1bn loss for the first six months of 2012. Management including chief executive David Duffy insisted it is on track to make a profit again in 2014.

Mr Doherty was unavailable for comment yesterday.

Irish Independent

Also in Business