Cash-strapped RTÉ paid €475k in severance to former board member despite State bailout

Last June at a meeting of the Oireachtas Media Committee, Terence O’Rourke (right), chair of the RTÉ board, confirmed that the national broadcaster was negotiating an exit payment of up to €400,000 for one individual. RTÉ director general Kevin Bakhurst (left) earned a basic salary of €250,000 last year, with pension allocations and allowances brining his total remuneration to €339,954. File photo: SAM BOAL/Collins Photos

A severance payment worth almost half a million euro was paid to one former member of the RTÉ executive board last year, despite the Government having to intervene in June 2024 to promise ring-fenced funding to the cash-strapped broadcaster over three years.

The broadcaster has also warned that it might not be able to meet its target of 400 voluntary redundancies over the next four years.

The details are contained in RTÉ’s annual report for 2024, which was approved by Cabinet on Wednesday and published by the national broadcaster.

The report notes there was one severance payment “agreed with a former member of the executive board” costing €475,000. This, it said, included a contribution to legal fees.

Last June at a meeting of the Oireachtas Media Committee, Terence O’Rourke, chair of the RTÉ board, confirmed that the national broadcaster was negotiating an exit payment of up to €400,000 for one individual. The report does not name the person who received the exit payment.

RTÉ confirmed last August that director of content, Jim Jennings, was leaving the organisation, with director general Kevin Bakhurst saying at the time he was “pleased we have been able to reach agreement around the terms of his departure with the support of the Workplace Relations Commission”.

The report also stated that in the “comparative period” of 2023, there were two severance payments worth €768,000.

During an interview on RTÉ’s News at One, media minister Patrick O’Donovan agreed that the severance payment was very high and that he will be discussing the payment with Mr O’Rourke next week.

RTÉ has stated that it is targeting a headcount reduction of up to 400 people, or 20% of its headcount. However, the annual report noted that there is a “risk” that this target may not be reached under the Voluntary Exit Programme (VEP).

Risks, it noted, include the delay in sign-off in the VEP, low staff turnover and the ability to attract, retain and develop staff, “especially for specialist roles”. Mr O’Donovan said he expects RTÉ to reduce its headcount by 100 this year.

The minister said:

If they can’t get to 100 this year, how are they going to get to 400 over the next couple of years?

“The reality is that the government came good with regard to the amount of money that we had to pony up to keep RTÉ afloat.

“If we didn't, we would be in a very different situation. There's an awful lot of companies historically that didn't get that level of support because of an internal mismanagement of the company that allowed the licence fee to go into freefall.

“The Government had no choice but to step in. But that support is not endless. We did require structural reform. We did require change. We were told we were going to get it.

“For that change, we've put forward the monies on behalf of the people. But that's not bottomless, and it's not endless, and so I would hope, and I would expect, that RTÉ would live up to their side of the bargain.”

Elsewhere, the report noted that RTÉ’s spend on hospitality increased from €1.2m in 2023 to €2.4m in 2024, including €2.06m spent on vouchers for staff.

The report also contained a list of RTÉ’s highest earners. Of the top 10 paid presenters, four are leaving or have left RTÉ.

Joe Duffy, the former Liveline presenter, retained his place as the highest-paid presenter in 2024 with earnings of €351,000. Clare Byrne, who will leave RTÉ for Newstalk, was second on the list with earnings of €280,000.

Joe Duffy retained his place as the highest-paid presenter in 2024 with earnings of €351,000. Photo: RTÉ

Ray D’Arcy, whose contract was not renewed this month, was number six on the list with earnings of €220,409, down from €250,000. Mary Wilson, meanwhile, was number seven on the list, earning €209,545, up from €199,194. She retired from Morning Ireland in September.

Other top paid stars included Patrick Kielty (€257,657), Miriam O’Callaghan (€246,708 down from €263,500) and Brendan O’Connor (€244,099). Dáithí Ó’Sé was a new entrant to the top earners list, coming in at number eight with earnings of €196,885.

RTÉ environment correspondent George Lee and sports presenter Darragh Maloney's earnings increased by €10,265 and €8,252 to €195,939 and €194,902, respectively.

RTÉ director general Kevin Bakhurst, meanwhile, earned a basic salary of €250,000, with pension allocations and allowances brining his total remuneration to €339,954.