The Voluntary Health Insurance Board (VHI) last night unanimously approved the appointment of the National Lottery director, Mr Ray Bates, as its new chief executive. It is understood that the remuneration deal involves a salary of £135,000 plus bonuses.
The board is now seeking the approval of the Minister for Health for the appointment, but in turn it will have to be approved by the Government. The deal could run into serious problems as it breaches the Gleeson guidelines on semi-state pay.
Although the VHI will argue it is a special consultancy deal, final approval may not be forthcoming. The Government is against such packages as it feels this could open the floodgates to several other claims.
Although there was initially surprise at the suggestion that Mr Bates should be the next chief executive, sources said last night that the subcommittee which was charged with finding a new chief executive, made a very strong case to the board.
The current temporary chief executive, Mr Aidan Walsh, is due to leave within the next month to return to his job as a partner in accountancy firm Craig Gardner Price Waterhouse.
