John Lyons (Dublin North West, Labour)
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358. To ask the Minister for Public Expenditure and Reform the CEOs of semi-State companies that are on Hay contracts and those who are not on Hay contracts; if it remains his policy that the CEOs of semi-State companies are employed under such contracts; and if it is within the remit of the boards of semi-State companies to offer contracts to CEOs that differ from Hay contract terms. [9599/14]

Brendan Howlin (Wexford, Labour)
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Following recommendations by the Review Body on Higher Remuneration in the Public Sector in 1996, the then Government adopted new arrangements for the system of setting the remuneration of CEOs of Commercial State Bodies.  Hay Management Consultants were commissioned to review the pay of these posts based on comparison with posts of similar weight in the private sector.  In July 1999 the Government approved the new approach to the determination of the remuneration of the CEOs of Commercial State Bodies. A further review, again carried out by Hay Consultants, was undertaken and implemented in 2007.

In June, 2011 this Government as part of the implementation of pay ceilings for Senior Public Sector posts made significant changes to the payment arrangements for Chief Executive Officers in Commercial State Bodies.  The salary ranges that apply to newly appointed CEO s in Commercial State Companies were reduced subject to a general pay ceiling of €250,000 per annum (subject to limited exceptions)  which has the effect of both reducing the salary for all CEOs in a proportionate manner while maintaining the weightings which reflect the different scale and responsibilities associated with the individual posts. 

While the chief executive is employed by the relevant organisation, it is a standard statutory requirement that contract terms for CEO s of Commercial State Bodies are subject to the approval of the relevant line Minister given with my consent as Minister for Public Expenditure and Reform.

There are no Commercial State Bodies under the aegis of my Department and I understand the question has been copied to other Departments for direct reply.