Mary Lou McDonald (Dublin Central, Sinn Fein)
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Question 88: To ask the Minister for Finance the maximum basic salaries of new appointees to each of the commercial semi States following the Minister for Public Expenditure and Reform's salary cap announcement on 22 June 2011, noting that the Minister's announcement only included the general starting salary for new appointees [17764/11]

Mary Lou McDonald (Dublin Central, Sinn Fein)
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Question 89: To ask the Minister for Finance in view of the fact that the Minister for Public Expenditure and Reform has publically announced the Government's intention to cap Commercial semi State pay at €250,000 with the exception of the ESB which will be capped at €318,083, the measures he will put in place to ensure that additional elements of chief executives' remuneration packages are not bolstered to make up the fall in expected salary for new entrants once the caps are in place; and if he will detail each additional element of each entrants remuneration package. [17765/11]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 88 and 89 together.

It is intended that new chief executive appointments will be made at the new appointments rate as outlined in the table that follows this reply. For incumbent CEOs the relevant "Hay" range, does not represent a pay scale - rather a single salary point within the range is sanctioned by the relevant Minister with the consent of the Minister of Public Expenditure and Reform. A board of a commercial State company may not increase the sanctioned salary point without the further sanction of the relevant Minister and the consent of the Minister of Public Expenditure and Reform. In imposing the pay ceilings for new appointees, the Government recognises that in a small number of cases exceptions may be necessary and appointments may need to be made above the minimum of the relevant range. Such exceptions will be limited to instances where the exception is for a role of substantial importance in the commercial State company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role. Any such exception will be subject to my prior approval.

The remuneration arrangements for chief executives includes salary, pension, performance-related pay and other conditions (e.g. the provision of a car) and are specified in each employment contract which is subject, under statute, to the agreement of the relevant Minister and the Minister for Public Expenditure and Reform. In this context, boards may not introduce new or enhance existing elements of the CEOs' remuneration without obtaining prior Ministerial sanction. The annual remuneration of CEOs is published in the annual reports of commercial State companies. The performance-related pay arrangements for this sector are, as agreed by the Government some years back, for up to 35% of salary with 10% relating to multi-annual objectives and medium to long-term targets. The Government has decided I should review the current performance schemes for chief executive of commercial State companies in conjunction with Departments with such companies under their aegis. In the meantime, bonus payments to CEOs should not be paid.