Written answer
State Bodies
The Government said CEO pay reviews followed an independent, evidence-based assessment, considering recruitment needs, comparable roles, public value and the scale of State companies’ responsibilities. It implemented a banded salary framework, with board proposals requiring approval by the responsible Minister and the Minister for Public Expenditure.
80. Deputy Cathy Bennett asked the Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation the basis on which it was decided to award excessive salary increases to the CEOs of many State bodies. [74938/26]
Comment on this
On 27 June 2023, the Minister for Public Expenditure National Development Plan Delivery and Reform published the final review of the Report of the Independent Review Panel on Senior Public Service Recruitment and Pay Processes. The Panel made a range of findings and 38 recommendations. Among these recommendations was the establishment of a Review Body on Higher Remuneration to advise the Minister on total remuneration arrangements for senior posts in the Public Service and for Chief Executive Officers (CEOs) of CSBs. It further recommended that the CEOs of CSBs be prioritised for review by the recommended Body arising from the lack of an agreed mechanism to review rates and their exclusion from national pay agreements.
The Government subsequently established the Senior Post Remuneration Committee (SPRC) in March 2024 on an administrative footing and, as per the recommendations of the Report of the Independent Review Panel, the first task of the Committee was to perform a review of the remuneration arrangements for the CEOs of CSBs. In doing so Government was conscious of the scale, complexity and commercial responsibilities associated with leading major State companies, and their role in the management of critical national infrastructure and the delivery of significant investment programmes.
The SPRC’s review was independent, evidence-based and extensive. It represented the first systematic examination of Commercial State Body CEO remuneration since 2011 and involved broad consultation with Ministers, Board Chairs, national and international experts, and other stakeholders. The review was also informed by research, international benchmarking, detailed data collection and technical analysis supported by NewERA.
In formulating its recommendations, the Committee had regard to the need to recruit and retain high-calibre leaders, while ensuring remuneration arrangements remain consistent with the public interest and represent value for money. Consideration was also given to remuneration in comparable roles, economic conditions, internal organisational pay structures and the implications of collective pay agreements.
The report of the SPRC outlines the importance of fair and appropriate remuneration as a key element in the recruitment and retention of CEOs of CSBs who are critical to the State's future development and economic performance. Overall, the SPRC found that there is a requirement for a transparent framework for the regular review of CEO remuneration.
The SPRC report was published on 29 April 2025. Having considered the SPRC report, the Government agreed to implement a more structured approach to the remuneration across CEOs in CSBs. A banded salary structure was agreed by Government and has been implemented for CEOs, which ranges from their current salary to the market median of the relevant band. A salary is proposed by the relevant Board within the relevant band and then subject to approval by the responsible Minister, with my subsequent consent.