A report into the pay of chief executives at commercial state bodies has recommended overhauling the existing system of remuneration for company bosses.
The study examined CEOs’ salaries and benefits at organisations including An Post, Eirgrid, ESB, Uisce Eireann, RTÉ and the DAA.
Minister for Public Expenditure and Reform Jack Chambers said the Government had agreed to address a number of issues raised in the report by the Senior Posts Remuneration Committee.
He added a new measures were “designed to bring a more structured and consistent process to the remuneration of CEOs.”
The report has recommended setting pay proportionate to the size of the company with eight salary bands with a range in each band of between 80% to 120% related to pay in the private sector.
The study said there had been “significant slippage” of CEO remuneration in comparison to the private market as there were “no adjustments for cost of living or for any significant changes to the role, size and nature of the business in certain commercial state bodies.”
It said the CEOs were not subject to wage adjustments as cuts implemented following the financial crisis were unwound for staff in many organisations.
The report also recommended a consistent approach to benefits.
It found some commercial state bodies offered life assurance, health insurance and use of a company car, however, the scale of benefits varied.
It said pay should take account of the “superior value of pensions” in state companies and longer holidays.
It said pension contributions were 25% of basic salary which was greater than the median in the market which was 8% to 10%.
It also said there was a median of 30 days annual leave for the CEOs in commercial state bodies compared to 25 in the private market.
