Written answers

Wednesday, 13 June 2012

Department of Public Expenditure and Reform

Public Service Remuneration

9:00 pm

Photo of Pádraig Mac LochlainnPádraig Mac Lochlainn (Donegal North East, Sinn Fein)
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Question 22: To ask the Minister for Public Expenditure and Reform his plans to review the pay and allowances of non-commercial State agency chief executive officers; and if he intends to collate current salary and allowance data year-on-year paid out to such CEO's. [28253/12]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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In June 2011, the Government introduced a general pay ceiling of €200,000 for future appointments to higher positions across the public service (including CEOs of Non-Commercial State Agencies). This pay ceiling has applied since June 2011 and continues to apply to newly appointed CEOs in the Non-Commercial State Agencies.

While the policy applies to all new appointments to the position of CEO in Non-Commercial State Agencies, it could not , for contractual reasons, be applied to the current incumbents of these posts. However, the very small number of incumbents of senior posts in the Non-Commercial State Agencies with a salary in excess of €200,000 per annum were requested to make a voluntary waiver of salary of 15%, or to waive a lesser amount if the application of the full 15% reduction would bring their salary below the €200,000 salary ceiling.

As the Deputy may also be aware, the reductions outlined in the Financial Emergency Measures in the Public Interest Act (No. 2) 2009 applied to the remuneration of public servants generally including CEOs in the Non Commercial State sector, as did the Pension Related Deduction or "Pension levy".

Access to a Performance Related Award Scheme is no longer approved for inclusion in the employment contracts of CEOs of Non Commercial State Agencies. In terms of incumbent CEOs there are only a couple of bodies which continue, as they are legally entitled to do, to operate a Performance Related Award Scheme for an existing CEO for the remainder of their fixed term tenure.

In a very limited number of cases a car allowance may be payable to a CEO. The issue of whether an allowance of this nature is appropriate is considered on a case by case basis as CEO vacancies fall to be filled, having regard to whether the provision of such represents value for money for the body and is more efficient than otherwise recouping travel expenses incurred by the CEO in the performance of their duties.

The collation of remuneration data in respect of the CEOs of Non Commercial State Agencies is a matter that falls, in the first instance, to the relevant parent Department in the context of the particular organisation's annual report.

Conclusion

These matters are kept under review when approving the terms and conditions for each CEO appointment. However, the reductions which have already been achieved, whether under legislation, voluntary waiver or by the application of reduced salaries for new appointees, are significant. Any future policy developments on the determination of remuneration at the level of CEO will have to be considered in the context of the changes that have already been introduced.

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