Friday, April 22, 2011

Gravy train for top echelons in Irish State companies

UCD economist Colm McCarthy published a review of the Irish commercial State companies this week as a prelude to the Government considering their possible sale.  The media have been commenting on the high level level of pay at the top of these organisations.  The average employee remuneration in all of them is €54,600 but I thought it would be interesting to set out the the average pay in each of them and the multiple of that average which the chief executive receives.  The data relates to 2009.

Entity CEO Remuneration in 2009
Average Employee Remuneration in 2009
Multiple of employee average received by CEO
CIE 251,160 49,100 5.1
ESB 752,568 75,500 9.9
Bord Gais 394,000 67,300 5.8
EirGrid 407,000 83,400 4.8
Bord na Móna 392,000 44,800 8.7
Coilte 417,000 54,267 7.6
Dublin Airport Authority 568,100 49,300 11.5
Irish Aviation Authority 324,000 95,600 3.3
Dublin Port 317,000 67,900 4.6
RTÉ 326,000 59,700 5.4
An Post 500,000 43,300 11.5

The Minister for Finance, Brian Lenihan,  announced in his Budget speech last December that ‘there should be a maximum salary rate of €250,000 in the public sector and that the position of the Minister for Finance as a shareholder or the statutory shareholder can be used to enforce the objective of the maximum salary within a reasonable timeframe’.

Lenihan’s ‘capacity to enforce’ was not apparent when the former managing director when he demanded the resignation of the former managing director of AIB just weeks earlier and he departed having pocketed benefits worth €3 million after one year in that role

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