ESB looks for CEO at £100,000-plus

THE incoming chief executive of the ESB can expect to earn a salary well in excess of £100,000 it has emerged. The post, which will be advertised this week, becomes vacant later this year, when current chief executive Mr Joe Moran retires.

It is understood that Mr Moran's salary, which adhered, to the Gleeson guidelines, was just under £80,000. However, under a complex productivity bonus scheme and other mechanisms, his potential earnings were £104,000. The ESB yesterday declined to give exact details of Mr Moran's pay.

Sources indicated yesterday that salary would not be a major problem. If the next chief executive is employed under a contract - an increasingly common occurrence in the semi-state sector - the remuneration package will be more flexible.

It is thought the post will attract keen interest from senior executives within the ESB as well as in other State bodies. A number of senior people in the private sector are also expected to apply and applications will be vetted by a firm of management recruitment consultants.

Mr Moran steps down later this year as he will be 65 years old. He was appointed chief executive in April 1991 and was responsible for introducing major changes in preparing the company for competition.

Last September, he warned that the ESB had to be given a commercial mandate in the new legislation liberalising the energy market if the organisation was to survive and prosper.

He has also said that the ESB must be free to compete in all sectors of the electricity market. "We must also have the freedom to compete on equal terms with the new players who enter the market," he said.

Under an agreement reached last year, competition in the EU electricity market will be introduced from January next year.

The agreement means 22 per cent of the market will be open to competition. Likely entrants include Northern Ireland Electricity, which has been privatised.

Mr Moran was a central figure in the ESB's move to totally reorganise itself and establish a business division system in 1993. Five major divisions were set up covering power generation, the national grid, customer services, business services and, of course, ESB International.

Later that year Mr Moran made moves towards establishing the Cost and Competitiveness Review (CCR). This body involved management, the ESB's group of unions and the Department of Transport, Energy and Communications.

After almost two years of work and negotiation, the review programme was voted on and approved by ESB employees. It will reduce costs by almost £60 million a year and will reduce the workforce by 2,000.

The current workforce is 9,500. Up to the last quarter of last year, 661 people had left the company under a voluntary severance scheme provided for in the review, while another 187 had been approved to leave during 1996. A further 177 have received approval to leave over coming years. Another 975 job cuts will be needed under the review.

In 1995, the ESB returned a record operating profit of £83.6 million. However, a large exceptional charge, related to costs arising under the review meant it reported a bottom-line loss of £284 million.

Mr Moran was born in Castlebar, Co Mayo and joined the ESB in 1950. He has held a number of senior positions in the company.

Meanwhile, the ESB has announced two senior management appointments. Mr Donal Curtin (49) has been appointed director, commercial. He is currently a director of ESB International and is group managing director of its contracting business.

Mr Aidan O'Regan (51) has been appointed head of regulatory affairs. He is currently manager, corporate change, in ESB.