ESB board still deadlocked over executive pay package

The ESB board is to meet yet again in an effort to resolve the dispute over the proposed pay package of its incoming chief executive…

The ESB board is to meet yet again in an effort to resolve the dispute over the proposed pay package of its incoming chief executive. It follows a four-hour board meeting yesterday which failed to break the deadlock. The ESB, which is now heading towards the end of its second week without a chief executive, issued a very short statement after yesterday's scheduled board meeting. It said the board had considered the matter at the meeting and "will be considering it again at a meeting in the near future".

A spokesman for the ESB refused to elaborate or to say when the board would meet again.

The board has already held one emergency meeting, and its chairman, Mr Billy McCann, informally met Department of Public Enterprise officials several times over the matter.

The board appointed Mr Ken O'Hara, an ESB employee, as its incoming chief executive in June. It agreed a deal with him along the lines recommended in the Buckley report, a report which recommended significant salary increases for top civil servants.

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However, the new Government announced on July 28th that it had deferred implementing the recommendations for the present. Instead, Mr O'Hara's remuneration package must follow the Gleeson report guidelines on pay. Under these terms he would be paid around £105,000 a year, compared to around £200,000 a year under Buckley.

It is understood that Mr O'Hara is not keen to take the post at the lower rate.

Whatever deal is agreed must be signed off by the Minister for Public Enterprise, Ms O'Rourke, and the Minister for Finance, Mr McCreevy.

As of now, the ESB chief executive's duties are the responsibility of the ESB board.

A spokesman for the Department of Public Enterprise said last night that the appointment of a chief executive was a matter for the board.