ESB Chief Executive Secures 29% Pay Rise to €410,000 as Government Approves State Body Salary Overhaul
ESB chief executive Paddy Hayes has secured a 29% salary increase to €410,000 following government approval, the first pay rise for the role since 2011 and part of a wider overhaul of executive remuneration across commercial state bodies that has seen 19 chief executives receive increases — with proposals for the heads of RTÉ, TG4, Coillte, and the Drogheda Port still under consideration.
Background
The question of executive pay in Ireland's commercial state sector has been a recurring source of political controversy for more than a decade. Following the financial crisis of 2008 and the subsequent austerity programme, the government imposed pay caps on senior executives in state-owned companies, limiting salaries to levels that were increasingly out of step with market rates as the economy recovered. The caps, which were never formally abolished but were applied with varying degrees of rigour, created a situation in which some of Ireland's most complex and consequential organisations were led by executives paid significantly less than their counterparts in comparable private sector roles.
The ESB is a case in point. The company reported a pre-tax profit of €749.7 million on revenues of €6.73 billion in 2025, employing nearly 10,000 people and playing a central role in Ireland's energy transition. Managing an organisation of that scale and complexity — particularly during a period of rapid change in the energy sector, with the shift to renewables, the expansion of offshore wind, and the management of Ireland's electricity grid — is a task that commands significant remuneration in the private sector.
The government commissioned an independent Senior Posts Remuneration Committee to review executive pay across commercial state bodies, with the aim of establishing a more rational and defensible framework for setting salaries. The committee's recommendations, which have been implemented in tranches over the past year, have resulted in pay increases for 19 chief executives to date.
Key Developments
The pay increase for Paddy Hayes was sanctioned by Minister for Public Expenditure Jack Chambers on July 6, 2026, following a recommendation from Minister for Climate, Energy and the Environment Darragh O'Brien. Hayes's salary rises from €318,083 to €410,000 — an increase of approximately €92,000, or 29%. His total remuneration package for 2026, including pension contributions of €56,500, is expected to reach approximately €419,500, excluding the value of his company car.
The ESB has stated that the new salary reflects the "scale, scope and complexity" of the organisation's operations and is part of a three-year approach subject to annual performance reviews against key performance indicators. The increase is the first adjustment to the ESB chief executive's salary since 2011, a period of 15 years during which the role's responsibilities have expanded significantly.
The government has indicated that proposals for the chief executives of RTÉ, TG4, Coillte, and the Drogheda Port remain under consideration, with decisions expected before the end of the year.
Why It Matters
The ESB pay rise is significant not only for what it says about the government's approach to state sector remuneration but for the broader debate it has reignited about the relationship between public service and private sector pay. Critics of the increase argue that a 29% rise for an executive already earning over €300,000 is difficult to justify at a time when many public sector workers are still seeking pay restoration following years of austerity. Supporters counter that the alternative — losing experienced executives to the private sector or failing to attract talent of sufficient calibre — would ultimately cost the State far more. The ESB's performance under Hayes's leadership, with profits approaching €750 million, provides some empirical basis for the latter argument. But the political optics of large pay rises for state body executives remain challenging, particularly in an environment where housing costs, childcare, and the cost of living are dominant public concerns.
Local Impact
The ESB employs approximately 10,000 people across Ireland, with significant operations in Dublin, Cork, Limerick, and across the regions. The company's investment programme — which includes major offshore wind projects, grid upgrades, and the expansion of EV charging infrastructure — has direct economic consequences for communities across the country. The pay rise for the chief executive is unlikely to have any direct impact on those operations, but it will be scrutinised by ESB workers and their trade unions, who will be watching to ensure that the principle of fair pay applies at all levels of the organisation, not just at the top.
What's Next
The Senior Posts Remuneration Committee is expected to complete its review of the remaining commercial state body chief executive salaries — including RTÉ, TG4, Coillte, and the Drogheda Port — before the end of 2026. The government has indicated that it will publish a comprehensive report on the outcomes of the review, including the rationale for each decision, to ensure transparency and public accountability. The Oireachtas Committee on Finance, Public Expenditure and Reform is expected to hold hearings on the issue in September, with the Minister for Public Expenditure expected to appear before the committee to explain the government's approach.
