BRIAN GOGGIN, the chief executive of Bank of Ireland, opposed the appointment of Denis O’Brien as deputy governor of the bank, it is understood.

The opposition of the chief executive highlights how O’Brien’s elevation to the position created divisions at board level.

Last month, O’Brien unexpectedly resigned from the position of deputy governor of the bank’s “court”, effectively deputy chairman of the board, citing work commitments.

The bank said that the affairs of the court were confidential and would not comment on the background to O’Brien’s election. However, it is believed that Goggin was one of a number of directors who were unhappy with the selection of O’Brien.

O’Brien’s candidacy is believed to have been strongly supported by the incoming governor, Richard Burrows, then joint managing director of the drinks giant Pernod Ricard, and a number of other non- executives. Non-executives strongly outnumber executive directors on the bank’s board.

O’Brien’s appointment to the second highest position on the bank’s board in September 2005 gave rise to considerable comment, but it was assumed his election was unanimous.

Burrows was effusive in his praise of O’Brien when he responded to a letter from a left-wing lobby group about the decision. “Denis O’Brien was appointed as deputy governor because we believe he is the right man for the job. In his five-year membership of the court, he has made a useful and active contribution to our affairs and to the bank.”

Burrows added that O’Brien had been re-elected twice by stockholders at annual court, or annual meeting, and said he “was enthusiastic about his appointment and his increased involvement in bank affairs”.

O’Brien stood down from the position after just 12 months, with reports linking the decision to an imminent flotation of his hugely successful Caribbean mobile operation, Digicel.

His appointment came when the Moriarty tribunal was investigating alleged business links with a former minister for communications, Michael Lowry. O’Brien has denied the links.

The bank has yet to name O’Brien’s successor. George Magan, the Bank's senior independent director, is thought to be a likely candidate.