Rehab executive pay rates based on ‘industry’ levels, letter reveals

The PAC yesterday received a detailed Rehab response to 12 ongoing issues about the charity. It will discuss the letter — sections of which are outlined below — today.

Rehab executive pay rates based on ‘industry’ levels, letter reveals

Angela Kerins’s salary and bonuses: Rehab’s CEO has again refused to provide key details on her salary and bonus history as she has, in her view, already made “significant disclosures”.

After gaining attention in January when she called for “transparency” in charities but would not reveal her own pay, Ms Kerins said she earns €240,000 a year — rising to €272,000 with car and pension add-ons, and including a bonus of up to 35% of her salary.

However, despite asking for pay and bonus records for before 2010 — since Ms Kerins waived her right to the extra pay — it is not included in the letter.

“Ms Kerins made it clear she already made significant disclosures, and that she [does] not intend to provide any further information,” the letter — by Ms Kerins — read.

Frank Flannery’s consultancy and pension: Rehab has again said it cannot reveal Mr Flannery’s pension due to data protection laws. It also declined to detail a full list of his consultancy work, which “is not related to his membership of the board”.

It said the help is “varied” and includes “contributions” to international bodies; “preparation of policy documents”; and “workings of the charitable lotteries scheme”. It did not say if he is still available to consult.

Are the executive pay rates based on company or charity levels?: The charity’s senior officials’ pay structure is based on “industry” levels.

An eight-page summary of the 2014 independent report by consultancy firm Towers Watson — which recommends the pay rates — said they are based on 58 Irish firms’ average levels. The names of these companies are outlined in a 2013 Towers Watson survey, which is not available.

The group said “for over 20 years” Rehab has “provided pay and benefits competitive with the market”, showing the issue is older than previously known. While the PAC asked for the full Towers Watson report and older files, they were not sent.

What do previously unpublished annual accounts of Rehab firms show?: The PAC was sent accounts for Rehab Lotteries and The Care Trust — a subsidiary of Rehab and a group linked to Rehab and the Central Remedial Clinic respectively. Page 14 of the Care Trust file shows 31 staff received a combined €1.294m salary pot, €139,569 in social welfare costs, and €63,022 in pension payments in 2012.

The group — seven managers and 24 “field staff” — received a 2% pay rise in 2012. Its six directors and one secretary include Rehab and CRC officials.

Rehab Lotteries’ 13 staff members received €415,862 in wages, €37,379 in social welfare costs, and €30,227 in pension payments in 2012. It was previously unclear how much of each groups’ funds went on staff salaries.

Rehab and Complete Eco Solutions: The PAC has concerns over Rehab’s link to a coffin importation firm set up by Frank Flannery, Ms Kerins’s husband Seán, and her brother Joseph McCarthy.

Rehab’s statement said there is nothing untoward and that the deal was part of market trials to “grow employment for people with disabilities”.

It said Ms Kerins was “asked by an [unnamed] executive if she would have any objection to Rehab Enterprises asking her brother, who had significant business in China, to source materials”. She said the board was told of the family connection.

Ms Kerins said there was no attempt to “mislead” the PAC last month on her husband’s share holdings with the firm, as she did not know this was still the case.

Was Mr Flannery told to attend last month’s PAC meeting?: At this stage the answer is yes, no, and maybe. Rehab’s letter to the PAC said: “Ms Kerins discussed with Mr Flannery and with the remuneration committee their possible attendance.”

Until now, Ms Kerins has refused to clarify the issue.

In a letter of his own yesterday, Mr Flannery said the PAC has not asked him “directly”. PAC said Mr Flannery was asked via Rehab, like all witnesses.

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