Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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128. To ask the Minister for Public Expenditure and Reform the evidence there is to support the claim that very high rates of remuneration for some senior posts in the public sector represent value for money, given that many of the individuals in question were recruited from elsewhere in the public sector; for details of any research or analysis undertaken to reach the conclusion that they do represent value for money; and if he will make a statement on the matter. [22581/25]

Jack Chambers (Dublin West, Fianna Fail)
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The Independent Review Panel (IRP) on Senior Public Service Recruitment and Pay Determination Processes was established in March 2022. The report was published in June 2023.

The IRP found that pay determination of senior posts should consider best practice in terms of openness, transparency, accountability and the need for an objective evidence-based methodology. The review recommended that an independent Body be established to give independent advice to the Minister for Public Expenditure on total remuneration arrangements for senior posts in the Public Service and for Chief Executive Officers (CEOs) of Commercial State Bodies (CSBs). The IRP recommended that the remuneration of CEOs in Commercial State bodies (CSBs) be reviewed as a matter of priority.

On foot of this Report, the Senior Posts Remuneration Committee (SPRC) was established in March 2024 to provide independent and objective advice, supporting consistency and transparency in the pay arrangements attaching to senior roles across the Public Service. The SPRC was requested to perform a review of the remuneration arrangements for the Chief Executive Officers of CSBs. The request set out that the review be based on a number of principles, including the need to act in the public interest and provide value for money. Their Report was published on 29 April 2025. As noted in the Report, this is the first systematic review of CEO remuneration since 2011.

The SPRC made a number of findings and 17 recommendations. Amongst the key findings of this market analysis, the Report found that CEO remuneration packages have fallen out of alignment with the market, that there is insufficient headroom between CEOs and their direct reports, and an absence of performance-related pay at CEO level whilst their direct reports have access to these schemes. The SPRC found that there is a requirement for a transparent and robust framework for the regular review of CEO remuneration. The SPRC also found that there is a need for CSB Boards to have appropriate flexibility to manage CEO remuneration in line with the organisation’s business needs, performance and capacity to pay, with an enhanced system of governance in place.

Having considered the SPRC report, the Government has agreed to implement a more structured and consistent process to the remuneration of CEOs in CSBs. A banded salary structure will be implemented for CEOs ranging from their current salary to the market median of the relevant band. In line with the SPRC findings in relation to increased flexibility for Boards, it will be a matter for the relevant Board to propose a point on the banded salary structure ranging from the current fixed point salary to the relevant market median. Any salary proposals or changes will be subject to governance and scrutiny with approval required by the relevant Minister, and with my consent. Contrary to the SPRC recommendations, there will be no backdating of any changes to pay.