It is a sad indictment of Irish corporate culture that a CEO who presided over a >90% collapse in his company’s share price and committed such ludicous acts as describing a mortally wounded loan book as “bombproof” not to mention his unbelievable comments regarding raising equity could have lasted so long.
-Eugene Sheehy, the chief executive of Allied Irish Banks, all but ruled out going cap in hand to raise cash from shareholders or asking for State investment — even as the lender’s bad loan losses soar over the coming years.
“We’d rather die than raise equity,” Mr Sheehy said in a presentation to about 450 well-heeled private clients of Goodbody Stockbrokers in Dublin yesterday. – Irish Independent, October 24, 08 http://www.independent.ie/business/irish/wed-rather-be-dead-than-raise-equity-says-sheehy-1508041.html
David Murphy on RTE tonight points correctly to the EGM as the catalyst. The Sunday Tribune had the story first, I think, and the Indo gave more details this morning (so why were we surprised this afternoon?)
I think Gleeson and Sheehy realised they couldn’t get the votes i.e. Lenihan had lost patience and the other major institutions realised change had to happen. The danger is that we will have cosmetic changes but the insiders will keep contol. The appointments of a Chairman from CRH and a new post of Deputy Chairman (from Lloyds Bank), alongside Sheehy’s intention to hang on until his replacement is appointed, points to an effort to prevent outsiders gaining positions of authority.
Of course, retiring means Sheehy gets the best retirement package, influence over his successor and the luxury of pretending that he acted in the best interests of the bank i.e. the normal reward for failed CEOs in Ireland.
[…] contributor on irisheconomy.ie said: “The danger is that we will have cosmetic changes but the insiders will keep contol. […]
@Lefournier: “David Murphy on RTE tonight points correctly to the EGM as the catalyst.”
As you mention him, big it up (I think that’s the phrase the young folk use) for David Murphy who has, it seems to me, presented several well-researched stories and explained complex matters clearly on the wireless.
6 replies on “Personnel Changes at AIB”
It is a sad indictment of Irish corporate culture that a CEO who presided over a >90% collapse in his company’s share price and committed such ludicous acts as describing a mortally wounded loan book as “bombproof” not to mention his unbelievable comments regarding raising equity could have lasted so long.
-Eugene Sheehy, the chief executive of Allied Irish Banks, all but ruled out going cap in hand to raise cash from shareholders or asking for State investment — even as the lender’s bad loan losses soar over the coming years.
“We’d rather die than raise equity,” Mr Sheehy said in a presentation to about 450 well-heeled private clients of Goodbody Stockbrokers in Dublin yesterday. – Irish Independent, October 24, 08
http://www.independent.ie/business/irish/wed-rather-be-dead-than-raise-equity-says-sheehy-1508041.html
While provisions have been forecast to rise in the second half of the year, Eugene Sheehy told analysts yesterday that the bank’s loan book was “bomb-proof”. August 2, 07
http://www.independent.ie/business/aib-raises-forecast-on-buoyant-interims-1049310.html
I do hope that Eugene is alive and well
David Murphy on RTE tonight points correctly to the EGM as the catalyst. The Sunday Tribune had the story first, I think, and the Indo gave more details this morning (so why were we surprised this afternoon?)
I think Gleeson and Sheehy realised they couldn’t get the votes i.e. Lenihan had lost patience and the other major institutions realised change had to happen. The danger is that we will have cosmetic changes but the insiders will keep contol. The appointments of a Chairman from CRH and a new post of Deputy Chairman (from Lloyds Bank), alongside Sheehy’s intention to hang on until his replacement is appointed, points to an effort to prevent outsiders gaining positions of authority.
Of course, retiring means Sheehy gets the best retirement package, influence over his successor and the luxury of pretending that he acted in the best interests of the bank i.e. the normal reward for failed CEOs in Ireland.
http://www.independent.ie/business/irish/aib-set-for-stormy-agm-vote-as-top-brass-face-opposition-to-reelection-1724029.html
http://www.tribune.ie/article/2009/apr/26/sheehy-edges-closer-to-aib-final-departure/
[…] contributor on irisheconomy.ie said: “The danger is that we will have cosmetic changes but the insiders will keep contol. […]
@Lefournier: “David Murphy on RTE tonight points correctly to the EGM as the catalyst.”
As you mention him, big it up (I think that’s the phrase the young folk use) for David Murphy who has, it seems to me, presented several well-researched stories and explained complex matters clearly on the wireless.