Embattled World Bank President Paul Wolfowitz agreed to resign Thursday after weeks of controversy over his handling of a pay package for his girlfriend, a bank employee, the institution's board of directors announced Thursday.

In a statement announcing the decision, the bank said "a number of mistakes were made by a number of individuals" in the matter. (World Bank's statement)

Wolfowitz said the bank board accepted his contention that he acted "ethically and in good faith."

In a statement from Wolfowitz, he said it is "necessary to find a way to move forward. To do that, I have concluded that it is in the best interests of those whom this institution serves for that mission to be carried forward under new leadership." (Wolfowitz's resignation statement)

"Change should not be feared, it is something to welcome. It is the key to keeping this important institution relevant and effective in the future and meeting the needs of the world's poor, and of humanity as a whole," the statement said.

Wolfowitz was appointed to the World Bank post in 2005 after serving as deputy U.S. defense secretary, where he was one of the leading architects of the 2003 invasion of Iraq. His resignation will take effect June 30. Read More

Story Tags:

Related Stories