AIB's new chief executive David Duffy (right) has been awarded a salary of €500,000 -- which is the Government's maximum pay cap for bankers.
Mr Duffy, a native of Dublin who has spent his career working overseas in banking, will take over as chief executive next month.
The top role at AIB has been vacant since Colm Doherty stood down as managing director in November 2010 after the second State bailout of the bank.
Executive chairman David Hodgkinson will revert to the role of non-executive chairman.
Mr Hodgkinson said he was "ideally suited" to the task of leading AIB's extensive restructuring.
"He brings with him a wealth of experience and a sound knowledge of the local market," he said.