Bank of Ireland (B of I) could have been held liable under data protection rules for the media leak that led to Michael Soden's resignation as chief executive, it emerged at yesterday's annual general meeting (agm).
The bank recently announced that it made a €2.7 million settlement with Mr Soden, who resigned last year following revelations that he had accessed an adult website on his office computer.
The former chief executive subsequently sued Bof I.
A representative of a group of retired porters, who protested at the meeting because they are receiving low pensions, asked chief executive Brian Goggin to justify the payment in light of the fact that one of their number, Tommy Allen, was getting just €115 per week from the financial institution.
Outgoing B of I chairman Laurence Crowley told the meeting that the institution had been facing a claim for compensation from Mr Soden.
"It was not a question of compensation, it was a question of settling a lawsuit," he said. "We believed it was in the best interests of the bank to do so."
Mr Crowley said the terms of the settlement were confidential.
However, responding to further questions, he indicated that the bank potentially faced liability for the leak to the press that prompted Mr Soden's exit.
The former chief executive made serious claims against the bank under data protection, for breach of security of data, and damage to his name and reputation.
When the scandal broke in May 2004, it emerged that an internal audit had found details of the site that Mr Soden had accessed.
The discovery then leaked to the press.
Under a code approved by Mr Soden, the bank had banned accessing websites with adult content, and he resigned following the news.
He told The Irish Times afterwards that he was the victim of an unbelievable breakdown of trust, and compared the leak of the data to a priest breaking the vow of the confessional.
During yesterday's meeting, Mr Crowley pledged that the board would look into the issue of the porters' pensions.
Mr Crowley's deputy, Richard Burrows, succeeded him as chairman yesterday.
In a statement, B of I said it was trading in a positive environment and expected a satisfactory outcome for the year.
