The former ESB head received remuneration worth €363,851 last year yet RTÉ's director general received €151,000 and declined an increase due to the firm's funding situation, writes Arthur Beesley
Former ESB head Mr Ken O'Hara was the highest-paid chief executive in the semi-State sector last year, according to a review of annual reports.
The review reveals a wide disparity in pay earned by leaders of State-owned commercial companies. While many recorded a deteriorating financial performance in 2001, the chief executives in certain cases received pay increases. However, RTÉ director general Mr Bob Collins declined an increase due to the company's funding situation.
Most chief executives are paid on the scale agreed in structures set out by Hay Management Consultants in 1998. This provides for annual reviews by company boards in which basic salary is derived from a comparison of the chief executive post with comparable private-sector jobs.
It is thought, however, that some remain on the lower scale agreed after the Buckley review of higher remuneration in the public sector in 1997.
The semi-State chief executives are believed to have received a general pay increase last December in the Programme for Prosperity and Fairness. The companies rank among the best known in the State with thousands of workers, among them Aer Lingus, Bord Gáis and the ESB.
The emergence this week of the ESB annual report enabled comparison of the chief executive packages at all the major semi-States. Other annual reports were published during the summer.
Mr Pádraig McManus succeeded Mr O'Hara when he retired in July. Mr O'Hara received a remuneration package worth €363,851 in 2001, up from €317,138 in 2000. Mr O'Hara's basic pay rose to €267,691 from €239,350 with bonus and pension contributions also rising.
In addition to pension entitlements, Mr O'Hara was also entitled to receive a lump-sum gratuity of €436,573 accrued during his service. This sum increased by €52,128 last year.
Operating profits at the ESB fell by €103 million to €199 million last year due to higher fuel and wage costs.
Mr O'Hara's annual package was worth marginally more than that of Aer Lingus chief executive Mr Willie Walsh, which was valued in a full year at €358,000.
Mr Walsh was appointed last autumn. His basic salary in a full year is €254,000, with pension benefits of €63,000 and other benefits worth €41,000.
Aer Lingus reported a €139.9 million deficit in 2001 in the severe downturn that followed the attacks on the US one year ago. Losses continue this year ahead of a projected return to profits in 2003.
Mr Walsh's predecessor, Mr Michael Foley, was dismissed after a board subcommittee upheld two complaints made against him of sexual harassment. He denied the allegations and has issued a statement of claim in the High Court against the company and its former director of human resources, Mr John Behan.
Prior to his dismissal, Mr Foley was the highest-paid semi-State chief executive with a package worth €567,000 in a full year. This reflected his transfer from the private sector, where he led the US operation of the brewer Heineken. The latest Aer Lingus annual report shows he received a termination payment of €656,000.
An Post chief executive Mr John Hynes received a package worth €319,000 in 2001, up from €290,000 the previous year. His basic salary was €239,000, up from €213,000.
The company reported a €6.7 million pre-tax loss for 2001 with projected deficits of €37 million this year and €27 million in 2003 linked to once-off restructuring costs. The loss in 2001 was its first in 10 years.
Aer Rianta chief executive Mr John Burke earned a package worth €286,000 last year, up from €263,000 in 2000 and €227,000 in 1999. Operating profits at the airport company fell 18.7 per cent to €67.5 million last year, when it encountered difficult trading conditions, and significant restructuring and capital expenditure costs.
Bord na Móna chief executive Mr John Hourican earned €262,000 in the 12 months to the end of March, his first full year in office. The full-year remuneration paid in the previous period to Mr Hourican and his retired predecessor Mr Paddy Hughes was €244,000.
The company recorded profits after tax of €16.3 million, 93.5 per cent ahead of the previous year. It is developing a privatisation strategy, although it has not yet been formally asked by the Government to make a proposal to change its ownership.
Coillte chief executive Mr Martin Lowery was paid a package worth €241,000 last year, up from €208,000 in 2000. His basic salary rose to €178,000 from €152,000 in the period. Pre-tax profits at the timber company fell to €19.37 million last year from €26.65 million in 2000. The company attributed the decline to difficult trading conditions.
Bord Gáis chief executive Mr Gerry Walsh earned a package worth €235,000, marginally greater than the €234,000 he received in 2000. His basic salary rose to €173,000 from €164,000 in the period. Operating profits at the gas company rose to €107.42 million last year from €88.4 million in 2000.
RTÉ director general Mr Bob Collins earned a package worth €151,000 last year, down from €165,000 in 2000. Mr Collins declined a €62,000 salary increase due to the funding crisis at the State broadcaster, which recorded a €70.9 million deficit in 2001. If accepted, the increase would have brought his package to €213,000.
The CIÉ part-time executive chairman, Dr John Lynch, earned a package worth €150,627 last year. Dr Lynch is the only executive chairman in the semi-State sector.
The CIÉ group recorded a deficit of €7.8 million in 2001 after a "surplus" of €21.9 million in 2000. The State subvention rose 20 per cent to €245.1 million in the period. The group wants to increase its rail and bus fares by up to 20 per cent, although the Government wants any increase linked to reform of the organisation.
The pay earned by the leaders of the three CIÉ operating companies - Dr Alan Westwell at Dublin Bus, Mr Bill Lilly at Bus Éireann and Mr Joe Meagher at Iarnród Éireann - are not disclosed in its annual report.
