The Government has almost doubled the fees paid to people chairing the boards of major State bodies and has sanctioned significant increases in payments to chairmen and directors of such boards.
Yesterday's Cabinet meeting approved a proposal from Minister for Finance Brian Cowen to increase from €19,046 to €35,000 per annum the fees to the chairs of Category 1 boards. These include Aer Lingus, the Dublin Airport Authority, Bord Gáis Éireann, the ESB and RTÉ. Ordinary directors of these Category 1 boards will see their fees rise from €12,697 to €17,500 per annum. These are the first increases paid to chairmen and directors of State boards since 2001. In the case of ordinary directors, the increases are roughly equivalent to the increases of senior public servants since 2001.
Chairmen and women, however, are being given a more substantial increase, according to the department because "it has become apparent in recent years that an increased commitment is required of the chairpersons of the most important bodies and that this is not adequately reflected in the existing differentials" between the pay of those chairing boards and that of ordinary directors.
At present, the fees of chairpersons are roughly 50 per cent higher than those of other board members. Mr Cowen's proposal increases the fees for Category 1 chairs to the extent that it will be double the fee for a director.
The differential for chairs of Category 2 bodies is being increased, but by a lesser amount. These fees are set on the assumption they are non-executive chairs. In the case of Category 2 boards such as the Cork and Shannon Airport Authorities, Bórd na Móna and the Dublin, Dun Laoghaire and Cork port companies, chairs will now be paid €24, 000 compared to €15,236 up to now. Directors will get €14,000 up from €10, 157.90.
Category 3 board chairs, including those of Bórd Iascaigh Mhara, Bórd na gCon and the Equality Authority, will get €14,000, up from €10,157 and ordinary board members will get €9,000, up from €6,348.69.
Finally Category 4 chairs, who include those of the Arts Council, the National Gallery and the Broadcasting Commission of Ireland, will get €10,500, up from €7,618 and ordinary directors will get €7,000, up from €5,078.