The salaries of high-ranking officials in public commercial organisations like RTÉ are set to possibly increase due to a recent governmental decision to reassess their remuneration. A new committee named the Senior Posts Remuneration Committee will be inaugurated by the government to examine the salaries of said officials. A law to form the committee will also enable the Minister for Public Expenditure to ask the committee to consider the remuneration of other top-tier roles within the public sector. However, the pay of Ministers and other political office holders will be exempted from the committee’s review.
It was suggested last year by an independent panel that a new pay authority should analyse the remuneration of senior bureaucrats, judges, senior police and military staff, and hospital consultants.
In the wake of the announcement, there has been public uproar about inflated executive and presenter pay at RTÉ. Government insiders revealed that the upcoming review will scrutinise the salary of Kevin Bakhurst, RTÉ’s director general. He currently earns a basic wage of €250,000, along with a pension contribution equalling 25% of his pay and a car allowance. However, other leading personnel at RTÉ will be excluded from the investigation.
In addition, the government also condoned new regulations concerning the tenure of secretaries general – the highest ranks in the Civil Service. These officials will be allowed to remain in post for no more than nine years, pending a two-year extension after the initial seven-year term. The proposed legislation maintains that after their term, these high-ranking bureaucrats could downgrade to the position of assistant secretary (receiving corresponding pay) or receive a single, end-of-term payment equalling one year’s salary.
According to the Department of Public Expenditure, this follows a policy that has been in effect for over ten years and complies with the limitations placed on such personnel to take up other jobs after departing from the public sector, as prescribed by the Standards in Public Office Commission.
The upcoming legislation also allows the government to appoint a secretary general to an equivalent role outside their respective Civil Service department for five years after ending their term.
Paschal Donohoe, the Minister for Public Expenditure and Reform, has announced plans to instruct the newly-formed Senior Posts Remuneration Committee to commence an evaluation of the salaries of CEO’s across state-operated commercial entities. It is anticipated that this review will encompass organisations such as ESB, VHI healthcare, and the government-owned transport firms.
An independent group previously advocated a swift review of the top executives’ compensation in these companies. Observations raised by the group pointed to a number of issues with current salary arrangements, largely due to an absence of a standard process to assess pay scales and the fact that these executives are not part of national wage agreements.
The newly-established Senior Posts Remuneration Committee, led by chartered accountant and governor of The Irish Times Trust, Maeve Carton, has been tasked with overseeing this change. According to Mr Donohoe, the government aims to not only address these salary concerns but also improve clarity, consistency, and transparency for all concerned parties, while ensuring that experience is preserved within the system.