Allied Irish Banks Says David Duffy to Become CEO Next Month

Allied Irish Banks Plc (ALBK) said David Duffy, a former executive at South Africa’s Standard Bank Group Ltd., will next month become the government-owned lender’s chief executive officer.

Duffy, 50, left Standard Bank in June to set up Celtic Advisory International to advise companies on capital raising and corporate development, Allied Irish said in a statement today. He joined Standard Bank in 2006, initially as CEO of the lender’s Standard Bank Plc in London, having previously worked at ING Groep NV and Goldman Sachs Group Inc.

Ireland’s central bank approved the appointment of Duffy, following his nomination by the bank’s board last month, two people familiar with the matter said on Nov. 15. He will be Allied Irish’s fourth leader in two years, after Eugene Sheehy stepped down in 2009. The nation’s second-largest bank by assets is 99.8 percent state owned, following a 21 billion euro ($28.4 billion) bailout amid the collapse of the country’s real-estate market.

The Finance Ministry said in an e-mailed statement that a state-imposed 500,000 euro-a-year salary cap “has been applied to this appointment,” with no benefit-in-kind payments, and employer pension contributions set at 15 percent of salary into a defined-benefit plan. Duffy will receive “vouched reasonable expenses for relocation costs to Ireland and accommodation for a period of three months, subject to board review,” it said.

A ministry spokesman, Eoin Dorgan, said no performance incentives have been built into his contract, which is fixed initially for three years, with an option to renew for a further three.

Interim Executive Chairman David Hodgkinson, who took over when Colm Doherty departed as group managing director 12 months ago, will remain on the lender’s board as non-executive chairman, Allied Irish said.

To contact the reporter on this story: Joe Brennan in Dublin at jbrennan29@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

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