ESB gives CEO 29% pay rise to bring salary to €410,000

Paddy Hayes, the chief executive of the Electricity Supply Board (ESB), has received a 29% pay raise, bringing his annual salary to €410,000. The increase, which amounts to just under €92,000, was approved by the government after receiving sanction from the Minister for Public Expenditure and Reform, Jack Chambers. The decision followed a recommendation from the Minister for Climate, Energy and the Environment, Darragh O’Brien. The pay increase took effect on 6 July 2026 and marks the first such adjustment for Mr Hayes since 2011. It comes as part of a broader review of executive pay arrangements for CEOs of commercial state bodies, led by an independent Senior Posts Remuneration Committee. According to the ESB, the decision reflects the scale, scope and complexity of the organisation’s operations. In 2025, Mr Hayes oversaw the ESB generate a pre-tax profit of €749.7 million on revenues of €6.73 billion, with employee numbers reaching 9,968. The ESB spokesperson confirmed that Mr Hayes’s new salary of €410,000 is effective from 6 July. For the 2026 financial year, the ESB calculates his salary at €363,000, with an employer’s contribution to his pension amounting to €56,500. This results in a combined salary and pension package of €419,500 for 2026, excluding the benefit in kind from the use of a company car, which is separately accounted for. Mr Hayes’s total pay package for 2025 included a salary of €318,083, pension contributions of €49,197, and a benefit in kind of €5,560 for the use of a company car. His overall compensation for that year amounted to €372,822. The ESB noted that the current salary increase aligns with ongoing efforts to ensure fair and competitive remuneration for executives within the public sector. The approval process for the pay increase involved multiple levels of government oversight. The decision was communicated to the Chairperson of the ESB Board, Terence O’Rourke, on 20 July 2026. A spokeswoman for the Department of Climate, Energy and the Environment explained that the decision covers a three-year period and will be reviewed annually based on key performance indicators. She added that the ministers’ approval reflects a consistent approach to managing executive salaries across state-owned enterprises. Terence O’Rourke expressed appreciation for the ministers’ support, stating that the ESB continues to advance its strategic goals, contributing to Ireland’s social and economic development through infrastructure projects, customer empowerment, and renewable energy initiatives. He highlighted the importance of maintaining a stable and motivated leadership team to drive progress in these areas. The ESB is not alone in approving significant pay increases for its top executives. To date, the government has sanctioned pay raises for 19 CEOs of commercial state bodies, with four additional proposals currently under consideration for the leaders of RTÉ, TG4, Coillte and Drogheda Port. Other recent approvals include increases for CEOs at Bórd na Móna, Uisce Éireann, Iarnród Eireann, Bus Éireann, Bus Átha Cliath, CIÉ, Dublin Port Company, Shannon Airport Group, Gas Networks Ireland (GNI), Irish National Stud, Port of Cork, VHI, the Land Development Agency (LDA), Port of Waterford, An Post, AirNav Ireland, Irish Aviation Authority and daa. These decisions underscore the government’s commitment to ensuring that executive compensation remains aligned with organisational performance and national priorities. As the ESB moves forward with its strategic objectives, the continued support for its leadership will play a crucial role in shaping the future of Ireland’s energy and infrastructure sectors.