DUBLIN, June 19 State-owned Allied Irish Banks'
(AIB) Chief Executive David Duffy, who led the bank's return to
profit in the first quarter of the year, will stay on at the
bank after signing a permanent contract, the bank said on
Duffy, a former senior executive at South Africa's Standard
Bank International and Dutch bank ING, joined
AIB at the end of 2011 on a fixed contract of three years with
an option to renew for up to a further three years.
Duffy has overseen a cost-cutting drive that has reduced its
workforce by almost 20 percent, cut salaries by up to 15 percent
and shut branches in a bid to turn it around much earlier than
analysts had predicted since its bailout.
"I wish to advise that David Duffy has recently agreed to a
permanent contract with the Bank given that his previous 3 year
contract was due to end during December this year," AIB Chairman
David Hodgkinson told the bank's annual shareholder meeting.
Bank executives in Ireland are subject to a
government-imposed salary cap of 500,000 euros ($678,600) and
Duffy took a pay cut as part of the bank-wide wage reductions,
reducing his salary to 425,000 euros last year.
($1 = 0.7368 Euros)
(Reporting by Padraic Halpin; Editing by James Macharia)