Dáil Éireann Debate, Friday - 16 September 2016
902. Deputy Martin Kenny asked the Minister for Public Expenditure and Reform when the guidelines on contracts for CEOs in commercial semi-State bodies were last updated; and the number of times they have been breached since its introduction. [25170/16]
View answer903. Deputy Martin Kenny asked the Minister for Public Expenditure and Reform the maximum length of service for CEOs in commercial semi-State bodies; and if he will make a statement on the matter. [25172/16]
View answer904. Deputy Martin Kenny asked the Minister for Public Expenditure and Reform the maximum salary for a CEO of a commercial semi-State body. [25175/16]
View answerI propose to take Questions Nos. 902 to 904, inclusive, together.
Generally, the Chief Executive Officer of commercial state bodies is appointed by the Board and holds office on terms and conditions determined by the Board with the consent of the relevant Minister and the Minister for Public Expenditure and Reform. The Guidelines on Contracts, Remuneration and Other Conditions of Chief Executives and Senior Management of Commercial State Bodies issued in 2006 provided general guidance at that time on remuneration, contracts, performance related pay and related matters for newly appointed Chief Executives of commercial state bodies. However, terms and conditions of appointment remain a matter in each case for consent by the line Minister and the Minister for Public Expenditure and Reform in the context of policy developments on the remuneration and conditions applicable to CEO appointees which have changed significantly from the 2006 guidelines.
In particular, the Government approved a proposal in June 2011, to impose a general pay ceiling of €250,000 for future appointments to CEO posts within Commercial State Companies and the position remains unchanged. In imposing the pay ceilings for new appointees, the Government recognised that in a small number of cases exceptions may be necessary. Such exceptions will be limited to instances where the exception is for a role of substantial importance in a Commercial State Company and the person whose appointment is sought brings exceptional or scarce expertise and/or qualifications to the proposed role. Any such exceptions are subject to the prior approval of the Minister for Public Expenditure and Reform. In line with the decision in 2011, the Government also reconsidered the issue of Performance Related Awards in 2012 and 2013 and confirmed the decision to omit provisions regarding Performance Related Awards from contracts of renewal or appointment in respect of the Chief Executive Officer of commercial state bodies. The recently published (effective 1 September 2016) updated Code of Practice for the Governance of State Bodies includes current guidelines on the contractual terms and conditions of appointment for CEOs in commercial state bodies. The Code provides that the term of a contract of a CEO is normally limited to a single contract period of between five and seven years but there is no maximum length of service for CEO's.
