Salary ceilings for semi-state bosses 'unrealistic', says Rabbitte

A Government Minister said today that it would be unwise to impose a single salary ceiling on the directors of semi-state companies.

Salary ceilings for semi-state bosses 'unrealistic', says Rabbitte

A Government Minister said today that it would be unwise to impose a single salary ceiling on the directors of semi-state companies.

Minister for Energy, Communications and Natural Resources Pat Rabbitte has written to a number of semi-State companies, expressing his views on the inappropriateness of taking bonuses in current economic circumstances, however.

It comes after claims last week by the executive chairman of AIB that the €500,000 salary on offer for the role of chief executive was creating a lack of demand, and might need to be reconsidered.

Minister Rabbitte said he has asked the Department of Finance for guidance on salary caps.

However, ahead of the Minister for Public Expenditure's memo to Cabinet on top-level pay in the public sector, Minister Rabbitte says it would be inappropriate to suggest that a one-size-fits all salary is realistic.

“It would be unwise of Government to confirm a single ceiling,” he said.

“Not all of these semi-state corporations are the same.

“I don’t think, realistically, that it would be a good idea for me approve a situation or a good idea for the country where the remuneration package for, say, the chief executive of ESB is identical to the remuneration package for the chief executive of Bord na gCon.”

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