Why is Kevin Bakhurst set to receive a 20k pay rise at RTE?

Director General of RTÉ, Kevin Bakhurst, is set to receive a €20,000 pay increase for his role at the state broadcaster, which in his short tenure has largely been focused on cutting staff numbers and costs.

Mr Bakhurst was appointed Director General in 2023 after the RTÉ payments scandal, with a mandate to improve operations and restore trust at Montrose.

In 2023, RTE recorded a deficit of €9.1 million. Bakhurst has brought in half way through the year and quickly set a target of reducing the RTE workforce by 400.

To combat lucrative salaries at the state broadcaster, Mr Bakhurst implemented a policy that he should be the highest-paid employee at RTÉ, which is now the case following the departure of several high-profile presenters.

To incentivise RTÉ staffers to make way, particularly those on higher salaries, a voluntary exit scheme was approved by Government last year. 

To qualify, employees were required to have at least two years of continuous service at the time of departure, with exit packages capped at €300,000.

Although 325 RTÉ employees applied, only 67 ultimately left the broadcaster under the scheme, falling short of the target of 100. A further 30 departed outside the scheme.

DG Bakhurst blamed the scope of the scheme for the lack of departures from the scheme, saying RTÉ had to show a 100% saving from each departure.

He is now seeking Government approval for a second redundancy scheme with greater flexibility.

So at a time of Paschal level prudency, why is the Director General set for a pay rise?

Mr Bakhurst’s base salary currently stands at €250,000, but rises to closer to €340,000 when pension and other benefits are included.

Over the past 12 months, several chief executives of commercial semi-state bodies have received substantial pay increases. Earlier this year, Mr Bakhurst told The Sunday Times he himself would judge if he was worth a pay rise - it appears he thinks he is.

Media Minister Patrick O’Donovan has approved Mr Bakhurst’s proposed pay rise, with final sign-off now required from Public Expenditure Minister Jack Chambers.

A salary increase, combined with Bakhurst’s policy of remaining the highest-paid employee, could prompt other top earners at the broadcaster to seek pay rises of their own.

In effect, a pay rise for Bakhurst may raise the de facto salary ceiling at RTÉ - at a time when the organisation’s stated priority is cost reduction.

Late Late Show presenter Patrick Kielty has finished his third season at the helm of RTÉ's flagship show and and reports suggest Bakhurst’s pay discussions may be delaying progress on his contract renewal.

Kielty sits at the top of the pay scale also earning €250,000 per year and a Bakhurst pay raise could result in a pay bump of his own.