The Government has got itself into a mess over what the tabloids like to call "top peoples pay". The VHI board will meet shortly to discuss what to do about the Government's rejection of a proposed pay package for a new chief executive.
This package exceeded the existing Gleeson guidelines and as the Government has yet to implement the new guidelines - drawn up by a committee chaired by AIB executive Michael Buckley - it felt it had no choice but to block the VHI package.
Pressure in the New Year to approve the Buckley recommendations will grow. As well as the VHI, Aer Rianta is also looking for a chief executive, the judiciary is lobbying for pay rises and TDs and Ministers themselves fell they could do with an extra few bob.
However, the most pressing issue relates to the chief executives of the commercial semistate companies. Many of these companies face upheaval and competition. The VHI is facing competition from BUPA, while Aer Rianta is expanding internationally and must plan for the loss of duty-free income.
If the chief executive jobs in these companies do not carry appropriate salaries - related to the private sector - then top-level candidates will not be attracted.
:quality(70)/cloudfront-eu-central-1.images.arcpublishing.com/irishtimes/VR3765MFOBH2NMV2QNICYDF67M.png)