Sunday 21 December 2014

Boom era bank chiefs - where are they now?

Published 01/09/2013 | 05:00

Gillian Bowler
Eugene Sheehy
Brian Goggin
Ted McGovern
Mark Duffy
Richard Burrows
David Drumm
Denis Casey
Dermot Gleeson
Chairman Michael Walsh(
Michael Fingleton

Bank of Ireland

CEO Brian Goggin

HAVING sat at the helm of the bank at the height of the boom, Mr Goggin caused outrage when he declared in January 2009 how he would earn "less than €2m" for the current financial year following a pay cut. In 2007, he received remuneration of €2.972m between basic pay, performance bonuses and other remuneration.

Since leaving the bank, Mr Goggin has taken up the role of adviser with private equity giant Apollo Management. Last year the €42bn private equity giant bought a portfolio of distressed Irish property loans from Lloyds Bank, once valued at €1.8bn, for just 10 cents in the euro following a long-running auction. The golf-loving Mr Goggin still lives in the exclusive south Dublin suburb of Foxrock.

Governor Richard Burrows

AFTER stepping down from his position as Bank of Ireland governor in 2009, the permatanned sailing fanatic landed a number of high-profile boardroom positions, including the €733,000 per annum chairmanship of British American Tobacco (BAT) and directorships with Rentokil and brewing behemoth, Carlsberg. In 2012, the erstwhile banker joined the board of FTSE 100 mining firm ENRC as it sought to rebuild its reputation.

Mr Burrows, who received €512,000 in fees from Bank of Ireland in 2007 alone, is understood to divide his time mostly between his office at BAT in London and his home in Dublin's Portmarnock.

AIB

CEO Eugene Sheehy

AS the economic storm clouds gathered in 2008, Mr Sheehy declared that he would "rather die" than see AIB accept capital from the State. Since that bold statement, however, AIB has fallen into the hands of the State completely and received a bailout well in excess of €20bn from the taxpayer.

Mr Sheehy, meanwhile, has long since departed from his post, returning to pursue a degree in history at Trinity College Dublin. Having received total remuneration of €2.1m in 2007, he retired from AIB with an annual pension entitlement of €458,000. When it emerged last year that the State had to plug a hole in the bank's pension scheme, Taoiseach Enda Kenny called on those with lavish pensions from the bank to hand back a share. Mr Sheehy did so voluntarily.

Chairman Dermot Gleeson

WHEN the crash came, AIB's angry shareholders made their displeasure known at the bank's 2009 AGM with pensioner Gary Keogh making headlines for pelting Dermot Gleeson with an egg. Since leaving the bank, the former Attorney General has busied himself with his legal work and chairmanship of the UK travel reservations firm, Travelport.

While he enjoys a steady income, Mr Gleeson hasn't come through the bust unscathed. Among the investments in which the high-profile barrister became involved at the height of the boom were the €20m purchase of the Dawson Street building which houses the famous Italian eatery, Carluccio's. Some years earlier, Mr Gleeson emerged as one of the members of the Nollaig consortium assembled by financier Derek Quinlan for the acquisition of the Four Seasons Hotel in Ballsbridge. He sold his home on nearby Shrewsbury Road last year for €5.2m and moved elsewhere in south Dublin.

Anglo Irish Bank

CEO David Drumm

HE was feted by the media during the boom for doubling the size of Anglo's loan book, but since it's all come crashing down the Skerries man, who pocketed a €3.274m pay package in 2007, has exiled himself to the US.

Having been pursued by his former employers for the repayment of some €8m in directors' loans, Mr Drumm filed for bankruptcy in Massachusetts in October 2010 in an effort to secure a clean bill of financial health. But Anglo's new management team were having none of it and contested Mr Drumm's bid for personal insolvency.

While the matter remains locked in a stalemate, the former banker has achieved a new level of infamy here thanks to the hugely damaging phone conversations captured by the Anglo Tapes, the details of which were published recently by the Irish Independent and Sunday Independent. Mr Drumm's expletive-ridden discussions with Anglo's then acting head of treasury, John Bowe, revealed a shocking level of disregard for the taxpayers who had been called upon to bail the failed bank out to the tune of billions of euro. Nothwithstanding his notoriety, Mr Drumm now works as an independent financial consultant in America.

Irish Nationwide

Michael Fingleton

IN the good times, he was lauded for his ability to grow Irish Nationwide's business off the back of the speculative multimillion euro punts he took on Ireland's high-rolling property developers – even as the society squeezed ordinary homeowners who fell into arrears on their mortgages. In 2007 alone he received a pay package of €2.313m

When the tide went out in 2008, however, Michael Fingleton's appalling mismanagement of the society was brutally exposed. In the end, the bill to the Irish taxpayer came in at €5.4bn, making it, according to the Sunday Independent's deputy business editor and co- author of Fingers, Tom Lyons, "pound for pound Ireland's worst financial institution".

Mr Fingleton now awaits the outcome of a multimillion euro lawsuit being taken against him and four of his other former co-directors by the special liquidators of Anglo Irish Bank. The lawsuit alleges that Mr Fingleton failed in his fiduciary duty to act in the best interests of the society and was negligent. It also seeks to recover Fingleton's controversial €1m bonus as well as some of his expenses. He still lives comfortably in the south Dublin suburb of Shankill

Chairman Michael Walsh

HE still works for financier Dermot Desmond's IIU, but there is little doubt that Dr Walsh's tenure at Irish Nationwide under Michael Fingleton between 2001 and 2009 did him no good.

He resigned from the board of IIU on November 7, 2011, the day after it emerged that the Central Bank was to assess whether he was fit and proper to serve as a director.

His decision to leave the board on which he had served for 17 years effectively excluded him from the scrutiny the Central Bank intended to carry out on directors of firms who served at the banks when the financial crisis struck.

Bank of Scotland (Ireland)

CEO Mark Duffy

UNDER Mr Duffy, BoSI led the infamous charge among Ireland's banks on the residential property front with the introduction of tracker mortgages, interest-only loans, equity release and the 100 per cent mortgage.

Since taking his leave of BoSI, Mr Duffy has shown a particular interest in the area of distressed property, joining forces in 2009 with private equity specialist Kevin Warren to establish Asset Resolution Corporation (ARC) with a view to seeking out potential buyers for distressed property assets both here and abroad.

With little activity ever recorded by ARC, Mr Duffy has now moved on again, teaming up with Swedish investor, Gunner Dahl, to form European Asset Resolution Partners (EARP). The venture which intends to target the acquisition of non-performing loans of between €5m and €25m from banks in Ireland and beyond is currently involved in a roadshow in London aimed at raising €100m according to sources in the City. Mr Duffy has moved his primary residence from Dublin to Switzerland.

Chairman Maurice Pratt

AS non-executive chairman of the bank between 2006 and 2010, Mr Pratt was in a position to shout 'stop'.

Notwithstanding his disastrous foray into the world of banking, Mr Pratt continues to enjoy success in business as the chairman of Uniphar, Kick Communications and as a board member of high-end retailer, Brown Thomas and Boyne Valley Foods. He also serves on the board of Tourism Ireland and as chairman of European Movement Ireland and the non-profit Business in the Community Ireland, IBEC, and the Barrettstown charity. He lives in the exclusive south Dublin suburb of Foxrock.

Irish Life & Permanent

CEO Denis Casey

HE may have resigned his position in February 2009 after coming under pressure, but it wasn't all bad news for Denis Casey thanks to the €4.6m payoff he received that year, which included some €369,000 for his work as CEO until May of that year, payment in lieu of notice totalling €1.2m and pension pot payments amounting to €2.9m.

Not bad for a banker who presided over 100 per cent mortgages for his customers in an already overheated property market. Mr Casey still lives in the upmarket Dublin suburb of Castleknock.

Chairman Gillian Bowler

BEST known for her success with Budget Travel and her propensity for wearing her sunglasses atop her head, Ms Bowler certainly didn't win herself any kudos for her chairmanship of IL&P.

Having been paid €228,000 in fees in 2008 alone, Ms Bowler faced the ire of IL&P shareholders at its AGM in May 2009 with calls for her resignation and for her to forego her remuneration.

On the resignation front, she said she had offered this to the board of IL&P but had been refused. On the matter of giving up her salary, she declined respectfully, saying this was a matter for her conscience. In seeking to explain IL&P's disastrous lending during the boom, she said she regretted the 100 per cent mortgages they had given out but reasoned that they had only done so in response to the "huge pressure" being put on them by analysts and investors who warned them they were losing market share.

EBS

CEO Ted McGovern

HE came in in the year 2000 determined to modernise and expand the EBS. By the time he stepped down unexpectedly in September 2007, the damage was all but done, thanks to the society's efforts under his tenure to keep up with its less conservative rivals such as Irish Nationwide.

EBS only targeted commercial property in 2006 when the market was at its peak. The society teamed up with subprime lender GE Money the same year. But while the EBS and the Irish taxpayer were ultimately left to pick up the bill for these mistakes, Mr McGovern walked away with a payout of €1.8m.

Sunday Independent

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