Friday 24 November 2017

Former AIB boss Doherty joins board of Siteserv

Nick Webb

Nick Webb

FORMER AIB chief executive Colm Doherty has joined the board of utilities services Siteserv, which was bought by Denis O'Brien last year.

While Doherty is believed to have been working as a capital markets consultant for a number of firms, the Siteserv appointment marks his first new board seat since leaving AIB two-and-a-half years ago.

Company filings detailing the post first emerged last week. But a Siteserv spokesman said the appointment had been effective from June last year.

Doherty headed up AIB's Capital Markets division before being appointed as AIB chief executive in 2009, replacing Eugene Sheehy as the State rescued the bank. Doherty was a board member of AIB from 2003 onward.

His period at the helm of AIB saw a series of firesales as the bank desperately tried to raise cash to cover lending losses. AIB sold off its Polish arm, Bank Zachodni WBK, to Banco Santander for €3.1bn in 2010. However, less than a year after taking the top job, Doherty stepped down as the State was forced to inject more money into the troubled bank.

It later emerged that he'd earned €3m during his brief time at the helm. This included a salary of €432,000 for the 11 months from January to November 2010.

The banker also received €707,000 in lieu of notice, plus he picked up €2m in cash instead of a contribution towards his pension scheme.

Last year the Sunday Independent revealed that billionaire Denis O'Brien was to buy Siteserv in a €45.5m deal. Siteserv includes companies such as Sierra, which provides services to Sky, UPC, ESB and Bord Gais, Deborah Services and Roankabin.

The company expanded fast in the boom but clocked up close to €150m in debt, largely due to Anglo Irish Bank. As part of the takeover deal, Anglo took a massive haircut on its loans to the firm. The bank, which went into liquidation last month, received just €40m for its loans.

Irish Independent

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