Enterprise Ireland sought approval for €300,000 pay package for new chief executive

Irish Times

2 days ago

State agency
Enterprise Ireland
wanted to raise the salary for their chief executive position by over €70,000 but were warned there was little chance of it being approved.
The agency told the Department of Enterprise late last year it was looking to recruit a new boss with a pay package worth €300,000 per year.
In a sanction request last December, it said it was looking to 'attract the highest possible calibre of candidates' including CEOs from the private sector.
It said the €300,000 package was not at private sector standards but 'would send a strong signal to the candidate market for this role'.
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The Department of Enterprise responded to say that a robust business case would be needed for raising the salary up from the agreed level of around €230,000 per year.
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Two weeks later, Enterprise Ireland submitted a revised document, this time saying they were looking for a salary of €270,000. The sanction request said: 'The CEO role is critical to the growth of the Irish economy while ensuring the effective leadership, direction, governance, client service delivery and internal transformation of the agency.'
The Department of Enterprise cautioned, however, there was almost no chance of getting an enhanced pay package approved by the Department of Public Expenditure.
A senior official said it was a 'substantial increase in pay' that would mean the CEO was paid more than a department secretary general or the boss of the IDA.
An email in January said: 'We envision [the Department of Public Expenditure] will have significant concerns with the proposed salary, particularly, as it could have wider public sector pay implications whereby other non-commercial semi state agencies could cite Enterprise Ireland when making future business cases.
'While the rationale outlined in the business case is well founded and has merit, [we think the department] will be reluctant to sanction the post given the high base salary requested.'
Officials also said Enterprise Ireland plans for filling the post quickly seemed 'incredibly ambitious' given how long the Department of Public Expenditure would need to assess the business case.
They also asked for a copy of any analysis the enterprise agency had conducted, which underpinned the case for a higher salary.
Later that month, Enterprise Ireland dropped the enhanced request entirely and asked to proceed with the appointment at the original rate of €229,949-per year.
A copy of the conditions of service said: 'Candidates should note that entry will be at the minimum of the scale and will not be subject to negotiation.'
In early February, the Department of Public Expenditure gave the go-ahead for the job to be advertised at the old salary level. It was subsequently filled with the appointment in May of Jenny Melia, a long-serving senior executive at Enterprise Ireland.
By the time the announcement was made, the pay level for the post had risen to around €235,000 as part of pay restoration for the public sector. Asked about the discussions, a Department of Enterprise spokesperson said the salary for the Enterprise Ireland CEO was on a single point pay scale.
'At the time of the first draft business case this was set at €229,949. However, due to a pay adjustment in March 2025 the set remuneration was increased to €234,548,' the department said, adding that it was government policy that all appointments from open competitions were at the minimum point of the relevant scale.
The spokesperson said any derogations would only be considered in 'exceptional circumstances' and would require approval of the Department of Public Expenditure.