Emmet Stagg (Kildare North, Labour)
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Question 156: To ask the Tánaiste and Minister for Finance the performance indicators used to quantify the bonuses of chief executives in each of the commercial State bodies for which the Cabinet recently approved new executive pay ranges; and if he will make a statement on the matter. [2332/08]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Performance-related pay for the Chief Executive Officers of the commercial State bodies is determined by reference to performance criteria drawn up by the Board of the relevant body in consultation with the parent Department. The Guidelines on contracts, remuneration and other conditions of CEOs of commercial State bodies provide that these performance criteria are required to:

comprise some, if not all, requirements which are of a long term nature;

be reviewed annually and be amended as necessary;

impose challenging and demanding performance standards on the Chief Executive;

give effect to the requirements of the shareholder;

take account of Government strategies including those outlined in the parent Minister's Department Statement of Strategy and

be expressed, as far as possible, in quantitative and measurable form.

In adopting the performance criteria, the Board must:

ensure that the Chief Executive will not be rewarded for results which are attributable primarily to external factors such as changes in the general economic climate;

consider the use of benchmarking criteria by reference to the performance of other commercial State bodies and relevant private sector bodies operating in the same or similar markets;

provide sufficient flexibility to respond to unforeseen major changes, positive or negative, which mean that the criteria are no longer relevant. This could include significant changes in the general economic climate, in the sector or market in which the commercial State body operates or in the regulatory regime for the sector.

Performance criteria are a matter for the Boards of the commercial State bodies themselves. The information sought by the Deputy is not available to my Department.