Semi-state firms to offer 'attractive' salaries to CEOs, to 'attract the best candidates'

The committee was established in March 2024 to provide independent and objective advice to the minister and in April 2024 the was requested to perform a review of the pay arrangements for the chief executive officers of CSBs.

The report found that CEO remuneration packages have "fallen out of alignment with the market", and that there is "a requirement for a transparent and robust framework for the regular review of CEO remuneration to ensure that CEO remuneration levels are set and remain at a level that is appropriate and equitable, recognises and rewards performance, and attracts the best prospective candidates into the future".

The report says that "a significant number of vacancies for CEO posts in CSBs will require to be filled over the next 12 to 18 months" and that new arrangements would be needed to ensure that candidates are not lost to the private sector. 

Under the proposals, there would be eight levels of pay set at a salary range of 80% to 120% of the market median for each respective band. These would be set based on the company's finances, staffing levels, and overall performance.

Mr Chambers denied that the report was paving the way for pay increases for CEOs of semi-state companies, but said that it was “clear that the State may not always be able to attract the best candidates for these critical positions under the current process”.

However, the Government has rejected the proposal that CEOs be given performance-based pay. The report had said that there was "insufficient headroom between CEOs and their direct reports, exacerbated by the absence of performance-related pay at CEO level" and that bonuses can "be a significant factor, with proper oversight, in driving organisational performance and recognising achievement".

At Cabinet on Tuesday, Mr Chambers told ministers that along with office of public works (OPW) minister Kevin 'Boxer' Moran, the Government will be proceeding with a plan to house hundreds of workers at a flagship office building in Limerick. The 14-storey office building will form part of the Opera Centre, a project designed to transform Limerick City centre.

Once complete, the building will accommodate approximately 900 workspaces and up to 1,500 public servants in a hybrid working environment.