Brendan Howlin (Wexford, Labour) | Oireachtas source

I thank the Deputy for the question. In 2012 the Government reviewed the position on the payment of performance-related awards or bonuses for chief executive officers in commercial semi-State companies and agreed, on my recommendation, to continue with the policy we had introduced in 2011 of requesting the State companies concerned not to award such bonus payments in the light of the serious state of the public finances.

Furthermore, the Government agreed to continue the practice of excluding the payment of bonus provisions in the employment contracts of any newly-appointed chief executives to such state companies as well as in respect of contract renewals for incumbent chief executives. The requirement to cease such forms of bonus payment, together with other basic salary reductions introduced by the Government in respect of the chief executives of state companies, was necessitated by the difficult financial and economic circumstances we have faced. Accordingly, the Government will continue to consider future policy developments on performance-related pay to chief executives in the light of prevailing circumstances.

I have no role in the performance-related award schemes for staff below chief executive level in commercial state companies. It is expected that the boards of these organisations act responsibly in designing and implementing a pay structure that drives performance while ensuring they are fully compliant with Government pay policy. It is a matter of Government policy that performance-related award schemes continue to be suspended on an indefinite basis for the non-commercial state companies. Access to such schemes is no longer included in the employment contracts for newly-appointed chief executives or in contract renewals for incumbent chief executives of non-commercial semi-states. It is a matter for parent Departments in the first instance to ensure that all bodies under their aegis are compliant with the set-out Government policy.

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