The ESB should scrap the controversial position of deputy chairman of its board, according a report prepared for the Government.
The report by Tom Healy of the Irish Stock Exchange says the position, held until recently by Joe LaCumbre, "does not appear to be necessary to the ESB board structure".
The report says if the position is scrapped then one of the company's non-executive directors should deputise for the chairman when he is not available. The current chairman is Tadhg O'Donoghue.
The report says if the position of deputy chairman is retained the company's board regulations should be amended "to specify the role and responsibilities of the deputy chairman", which are not clearly laid out at present.
Several board members do not favour the position of deputy chairman.
Mr LaCumbre, a worker director, claimed last year that he was effectively dismissed from the position after he raised the issue of the company's pension deficit.
He claimed he was dismissed after he was not permitted to chair meetings in Mr O'Donoghue's absence. Following intervention by the Minister for Communications, Noel Dempsey, a major board rift was avoided.
In February 2005 Mr Dempsey asked Tom Healy to write a report on the role and responsibilities of the deputy chairman of the ESB.
Mr Healy points out that the position of deputy chairman was established in February 1991 and Mr LaCumbre was appointed to the position in September 2000 by the then Minister for Public Enterprise, Mary O'Rourke. He was subsequently re-appointed by Minister Dermot Ahern.
Mr Healy says neither letter of appointment made any reference to what should happen when the chairman was absent. Mr Healy says while a deputy chairman can provide a certain level of "continuity of leadership", there are also disadvantages.
For example it may not be appropriate for the deputy chairman to chair board meetings where he or she may be perceived to have a conflict of interest. For example, he says, if a worker director might have to deal with staff pay and conditions.
"The existence of the position of deputy chairman restricts the board's ability to appoint an independent person to act in the absence of the chairman when it is considered that the deputy chairman may have a conflict of interest," says Mr Healy's report.
On the first page of the report Mr Healy says: "The views expressed in this document are those of Tom Healy and not necessarily those of the Irish Stock Exchange."
Mr LaCumbre recently informed the board he would be retiring, but so far the company have not indicated whether they will destroy the post of deputy chairman or not. Unions and management in other State-owned companies will be interested in the final decision by the ESB.
