The Electricity Supply Board (ESB) has confirmed that Chief Executive Paddy Hayes will receive a 29 per cent salary increase to €410,000, following ministerial approval from Minister for Public Expenditure and Reform Jack Chambers, according to official ESB and departmental statements released in July.
Executive Compensation and Ministerial Approval Details
Minister Jack Chambers sanctioned the pay increase for Hayes on July 6th, following a recommendation from the ESB’s line minister, Darragh O’Brien. According to a spokeswoman for the Department of Climate, Energy and the Environment, the decision implements a three-year framework subject to annual performance reviews against specific key performance indicators.
The approved salary represents a €91,917 jump from Hayes’s 2025 salary of €318,083. An ESB spokesman stated that the adjustment reflects the scale, scope, and complexity of the organization’s operations. This marks the first pay increase for the chief executive since 2011, proceeding from a review of executive pay arrangements for commercial state body CEOs conducted by an independent senior posts remuneration committee.
Did you know?
The Government has sanctioned pay increases for 19 commercial state body chief executives to date, with four additional proposals currently under consideration for the CEOs of RTÉ, TG4, Coillte, and Drogheda Port.
Total Compensation Package and Financial Performance
While the base salary shifts to €410,000 as of July 6th, the chief executive’s total compensation fluctuates when factoring in pensions and benefits. For the 2025 financial year, Hayes’s overall package totaled €372,822, which included a salary of €318,083, pension contributions of €49,197, and a €5,560 benefit in kind for a company car, according to corporate disclosures.
For the 2026 calendar year, the ESB projects Hayes’s total salary will register at €363,000 due to the mid-year implementation date, alongside an additional €56,500 in pension contributions paid by the board. This yields a combined salary and pension figure of €419,500 for 2026, excluding the taxable benefit in kind for his company vehicle.
ESB Chairman Terence O’Rourke defended the executive structure while welcoming the ministerial sign-off. According to O’Rourke, the organization continues to deliver on an ambitious strategy supporting Ireland’s economic and social development, building infrastructure, empowering customers, and connecting renewable generation sources.
Pro tip:
When analyzing state-backed executive compensation in Ireland, review both the base salary figures and separate pension contributions to evaluate the true annual cost of commercial semi-state leadership.
Operational Scale of the ESB
The leadership pay review coincides with robust financial results for the state-owned utility. Last year, the ESB generated a pretax profit of €749.7 million on revenues totaling €6.73 billion, while total employee numbers expanded to 9,968 workers, as noted in company reports.
As Ireland accelerates its transition toward renewable energy infrastructure, executive oversight involves managing multi-billion-euro capital expenditure programs. The independent remuneration committee utilized these operational metrics when evaluating the appropriate benchmark for the chief executive’s responsibilities.
Frequently Asked Questions
Why did the ESB chief executive receive a pay increase?
According to the ESB, the salary increase to €410,000 reflects the scale, scope, and complexity of the organization’s operations. The adjustment follows an independent review of executive pay for commercial state bodies.
Who approved the salary increase for Paddy Hayes?
Minister for Public Expenditure and Reform Jack Chambers sanctioned the pay increase on July 6th, acting on a recommendation from line minister Darragh O’Brien.
When was the last time the ESB CEO received a raise?
An ESB spokesman confirmed that this adjustment is the first pay increase for the chief executive since 2011.
What are the total financial results backing the ESB’s operations?
The organization generated a pretax profit of €749.7 million on revenues of €6.73 billion while employing 9,968 staff members.
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