The ESB board meets today to try to resolve the impasse over the pay of the incoming chief executive, Mr Ken O'Hara. It is thought likely that Mr O'Hara may opt to take the post at considerably less than originally agreed, for the short term at least.

The board had agreed a deal that he would be paid in excess of £200,000 per annum. It had used the Buckley report, which recommends certain pay guidelines with a strong emphasis on performance related pay, as the basis for his remuneration package.

However, the Government deferred implementing the guidelines. Instead, Mr O'Hara may have to settle for a remuneration package of £105,000 a year. It has been rumoured that the Government may introduce the Buckley pay scales, which suggests increases for a range of top civil service jobs as part of an overall Budget package.

It is thought that the board is likely to press Mr O'Hara to take the job in the interests of the company.

It is understood that a number of meetings between Department officials and the ESB chairman, Mr Billy McCann, took place last week. It is also understood that the ESB board suggested giving Mr O'Hara a personal contract, similar to those enjoyed by Mr Alfie Kane, chief executive, Telecom Eireann and Mr Gary McGann, chief executive, Aer Lingus, in an effort to overcome the problem. However, Mr McCreevy is said to be very much against this as a resolution.

Ten days ago, the board held an emergency meeting to discuss the issue, but today's meeting is a regular monthly board meeting. It is understood that the board had agreed terms with Mr O'Hara, subject to Government approval, before the announcement that Buckley was being deferred.