The Irish government has launched an investigation into how Michael Fingleton, veteran chief executive of the Irish Nationwide building society, was paid a €1m (£938,550) performance bonus. This was paid just weeks after Dublin guaranteed the society’s liabilities and those of all Irish financial institutions, amid fears of a run on deposits.

Brian Lenihan, finance minister, told parliament on Tuesday that he had asked the two directors appointed by the government under the terms of the guarantee, to investigate Mr Fingleton’s remuneration.