Sir, - It is appropriate that the chairman of any public company be it a PLC or state company, negotiate on behalf of the board the remuneration package of a chief executive. In the case of a state company, there is a requirement that there be compliance with the legislation, be it realistic or not.
It is, however, incomprehensible and an abdication of board responsibility to agree to an arrangement confidential to the chairman and the chief executive. There is an obligation on the board to be informed, if it is to perform its fiduciary responsibility on behalf of the shareholders - in this case, the taxpayer.
If the chairman agreed terms of employment of the chief executive which offended against the established guidelines, the proper course of action is to surcharge the chairman and the board for breach of the regulations. Insofar as the chief executive appears to have satisfactorily performed his executive responsibility, he should be retained as a remuneration which complies with the guidelines. - Yours, etc.,
Orwell Park,
Rathgar,
Dublin 6.