ESB secures 29% rise in pay to €410,000 for chief executive Paddy Hayes

The Electricity Supply Board (ESB) has secured government approval to raise the annual salary of its chief executive, Paddy Hayes, by nearly 29%, bringing his pay to €410,000. This marks the first such increase for Hayes since 2011 and comes after a comprehensive review of executive compensation for leaders of commercial state entities. The new salary took effect on July 6, following endorsement by the Minister for Public Expenditure and Reform, Jack Chambers, who acted on a recommendation from ESB's line minister, Darragh O'Brien. The increase brings Hayes' base salary up from €318,083 in 2025 to €410,000. According to the ESB, the decision reflects the growing complexity and scale of the organization's operations. Last year, ESB reported a pretax profit of €749.7 million on revenue of €6.73 billion, with employee numbers rising to 9,968. A spokesperson for the ESB stated that the new salary aligns with the company's strategic goals and ongoing efforts to support Ireland's energy infrastructure and renewable power initiatives. The approval process followed a three-year plan that includes annual reviews based on key performance indicators. A representative from the Department of Climate, Energy and the Environment noted that the decision adhered to established guidelines for executive compensation. ESB chairman Terence O'Rourke expressed satisfaction with the ministers' approval, emphasizing the board's continued commitment to national development through reliable energy services and sustainable growth. Hayes's total compensation package for 2025 included a salary of €318,083, along with pension contributions totaling €49,197 and a benefit-in-kind allowance of €5,560 for a company car. With the new salary effective from July, Hayes's earnings for 2026 are projected to reach €363,000, excluding the benefit-in-kind component. Additionally, the ESB will contribute an extra €56,500 to his pension this year, resulting in a combined salary and pension package of €419,500 for 2026. The move to increase Hayes's pay follows a broader initiative by the government to reassess executive compensation across commercial state bodies. To date, 19 chief executives have had their salaries approved, with four more proposals currently being evaluated for the heads of RTÉ, TG4, Coillte, and Drogheda Port. These assessments aim to ensure alignment between executive pay and organizational performance while maintaining public accountability. The ESB's decision to raise Hayes's salary underscores the evolving nature of leadership roles within state-owned enterprises, particularly in sectors critical to national infrastructure and energy security. As Ireland continues to invest in renewable energy and modernize its electrical grid, the responsibilities of top executives like Hayes have grown increasingly complex, necessitating adjustments in compensation structures to attract and retain qualified leadership. The new salary arrangement for Hayes will be reviewed annually against specific performance metrics, ensuring that future compensation decisions remain tied to measurable outcomes. This approach aims to balance the need for competitive executive pay with fiscal responsibility and transparency in public sector governance. The ESB's spokesperson emphasized that the increase was part of a structured framework designed to reward performance and sustain long-term strategic objectives. The approval of Hayes's pay hike highlights the broader trend of recalibrating executive compensation across state-owned entities. As these organizations play a pivotal role in shaping Ireland's economic landscape, the alignment of leadership pay with operational success becomes a focal point for both corporate management and government oversight. The ESB's actions reflect a commitment to maintaining high standards of service delivery while adapting to the demands of a rapidly changing energy market.