Hard bargaining will follow this week's publicity about the incomes of RTÉ's big names, writes Colm Keena
There was much "weeping and gnashing of teeth" in Montrose this week, according to one of the presenters whose income from RTÉ is now public knowledge.
"I think a lot of people will just avert their eyes and get on with the job. Others, though, will go looking for more money," says the presenter, who does not wish to be named.
He makes it clear that the annual process of going to management and seeking a pay rise for the coming year is something he loathes.
"You go in and you say 'will you give me more money?' and they say 'no' - and then what? Are you going to leave? No, you're not, and they know that," he says.
The person speaking is obviously not Gerry Ryan, the 2FM presenter who topped the RTÉ list of earners for 2002 with €601,882. That income represented a huge jump from his 2001 haul of €260,925 and is understood to have arisen from a contract review that included some long-term commitments to the station.
Second on the list for 2002 was Pat Kenny, who earned €556,430 and who may feel slightly aggrieved that he is not the highest earner, given his role on his radio show and on The Late Late Show.
According to one person in the know, the incomes of the top presenters at the State broadcaster are negotiated for them by representatives such as the media lawyer, James Hickey, and require approval from the RTÉ board. Tough negotiations in the new era of transparency are expected over the coming months.
An aspect of the list published by RTÉ is the number of presenters whose fees are paid to them by way of a company. Gerry Ryan has Balcom Management Ltd, Pat Kenny has Pat Kenny Services Ltd, and Marian Finucane has Montrose Services Ltd.
Derek Quinlan, the accountant who brought together the Irish investors who recently purchased the Savoy hotel group in London, as well as the partnership that owns the Four Seasons Hotel in Ballsbridge, Dublin, acts for Pat Kenny's company, as he does for Gay Byrne's company, Gabbro Ltd.
The latter's files in the Companies Registration Office show that in the early 1990s mortgages were taken out, the security for which was a life assurance policy of Byrne's for £1 million.
The fact that fees are paid to a company for a presenter's services, as against he or she being paid by RTÉ as an employee, no doubt means that certain work-related expenses can be claimed against taxes.
However, sources say that once the station starts to negotiate what it calls "talent contracts" with presenters, it prefers not to have them on the staff. The reason for this is that RTÉ wants to be able to drop presenters if they don't work out or if a show grows stale.
The top names at the station, such as Ryan, Kenny and Finucane, are in part reimbursed for clauses in their contracts that prohibit them from earning extra money from featuring in commercials.
Obviously, the key element that dictates a presenter's salary at RTÉ is the board's view as to his or her value to the station.
The Gerry Ryan's show on 2FM is a huge earner for the station. If Ryan had moved some years ago to Today FM it would have meant a great shift of advantage in the marketplace towards the new competitor.
There is a small pool of people capable of being top-class broadcasters and a station needs to keep these people in its ranks if it wants to survive. It is a simple commercial assessment made by members of a board who are paid substantially less than the "stars" whose packages they decide on, according to a source.
Inside RTÉ there was more surprise about the money earned by newsroom personnel, such as Charlie Bird (€146,855 in 2000) and David Hanly (€173,919 in 2002), than there was about the presenters' packages.
Another feature of the list noted in Montrose is the discrepancy between the number of male and female news anchors/presenters among the top earners.
Only two women appeared in the top 25: Marian Finucane and Miriam O'Callaghan. There was no sign of Anne Doyle, Eileen Dunne or Áine Lawlor.