Ahern surprised at pay of private sector executives

The Taoiseach expressed surprise at the pay of some executives working in the private sector.

The Taoiseach expressed surprise at the pay of some executives working in the private sector.

Mr Ahern said many of the companies whose executives had received large salary increases also had good share options and so on for the staff.

"These arrangements often drive each other. I will not mention any names, but one can see that some of the companies which give large increases to their executives also pay their staff the highest amounts. One can see these figures in the news any week.

"There is always a similarity between salaries of the executives and those of the staff. However, I am surprised at the figures. It is nice work if one gets it," he said.

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Mr Ahern was replying to Mr Caoimhghín Ó Caoláin (Sinn Féin, Cavan-Monaghan) who asked if Mr Ahern had take the opportunity at meetings with IBEC to "raise the quite excessive increases in pay to Irish company executives".

"In its most recent report, the Irish Management Institute states that Irish company executives have secured pay increases of the order of 50 per cent. In contrast, under Sustaining Progress ordinary workers have been restricted over a two-year period to a 7 per cent pay rise. There is a stark contrast between these two realities."

The Taoiseach said that Mr Ó Caoláin was talking about private sector companies and executives.

"Only a small number of people receive the increases he mentioned, most do not. The private sector would argue that this year the public sector has done better than it has.

"It must be admitted there are highly paid people. One is sometimes staggered at the salaries they receive.

"However, this is in the private sector market and if an executive does not get it right, he or she, and possibly the company, is out the door. That has happened many times this year," Mr Ahern said.

Michael O'Regan

Michael O'Regan

Michael O’Regan is a former parliamentary correspondent of The Irish Times