Energy Minister Darragh O'Brien defended a €480,000 salary increase for ESB chief executive Paddy Hayes, arguing that Hayes is an "exceptional person" managing a critical state agency. Despite over 320,000 households being in arrears on electricity bills, O'Brien maintained that the pay hike reflects Hayes's expertise and performance targets tied to significant investment in Ireland’s energy system. The minister also stated plans for budget measures to help businesses with energy efficiencies.
Written by the local model on 2026-09-17,
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same event (that is the story summary below).
Story summary
Darragh O'Brien, Ireland's Energy Minister, defended a recent pay deal that increases Paddy Hayes' salary as CEO of ESB (Electricity Supply Board) to €480,000 by June 2028 if performance targets are met. This represents an increase of nearly €162,000 from earlier this year. O'Brien justified the raise by stating that Hayes is "an exceptional person" who manages a top-tier organization and that his salary reflects his expertise through a clear process agreed upon with Minister Jack Chambers.
Despite defending the deal, O'Brien acknowledged growing concerns about household electricity bill arrears affecting over 320,000 homes. When questioned about public opinion on the pay hike during times of financial strain for many households, he responded that the government is acutely aware of these pressures and will introduce budget measures to help businesses become more energy efficient.
Written for “Irish Energy Boss Pay Controversy” on 2026-09-17,
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Leaning score +0.35 for article 15092 (high confidence, 2 verified quotes) · logged 2026-09-17
Published: | Updated:
ENERGY MINISTER Darragh O’Brien has defended signing off on a €480,000 salary for ESB boss Paddy Hayes, describing him as an ‘exceptional person’.
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O’Brien → publish → person
The Irish Daily Mail revealed yesterday that the pay deal for Mr Hayes will see his salary jump to €480,000 by June 2028 if performance targets are met – almost €162,000 higher than it was earlier this year.
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it → reveal → June
Mr O’Brien defended the pay deal when questioned by the Mail yesterday, insisting: ‘The chief executive of ESB is an exceptional person, manages a really exceptional organisation, and the pay scales set are through a very clear process that we have, and myself, in conjunction with Minister Jack Chambers, approved that increase because it takes into account the expertise that the chief executive himself has.’
ESB boss Paddy Hayes
It comes as more than 320,000 households are in arrears on electricity bills.
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households → defend → bills
Asked what those people would think about the pay hike, Mr O’Brien said he is ‘acutely aware of pressures households and businesses are under’ and measures will be brought forward in the budget to help businesses make energy efficiencies’.
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businesses → ask → efficiencies
He said the Government will do ‘what we can to help’ with energy costs ‘in what is a global issue and a global price issue as well’.
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what → say → costs
Documents obtained by the Mail show that Mr Hayes is on track to be on the highest point of the pay scale for semi-State CEOs.
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Hayes → obtain → CEOs
Despite information being blocked from being released by the Department of Public Expenditure and Reform and not being in the public domain prior to the Mail revealing it, Mr O’Brien insisted it wasn’t ‘secret’.
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it → block → it
Performance targets are not outlined in the memo but will be defined by the ESB board and assessed in a performance review before Mr O’Brien sanctions them.
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O’Brien → outline → them
Asked what milestones Mr Hayes would need to hit before his salary hikes kick in, Mr O’Brien pointed to Price Review 6, which will see €18.9billion invested into the country’s energy system.
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18.9billion → ask → system
‘That needs to start, and we need to get on with it,’ he said.
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he → need → it
‘The importance of his role in managing a very critical State agency that’s going to be part of an investment of nearly €19billion in our grid to ensure we can continue to accelerate delivery of renewables, which we’re doing, so we can continue to electrify and decarbonise as well.’
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we → manage → which
Energy Minister Darragh O'Brien at Leinster House on Wednesday
Mr O’Brien said the CEO has a ‘very important job to do’ and ‘I believe the pay is commensurate with the responsibility and the expertise the chief executive has’.
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executive → say → responsibility
The Government signed off on a €91,917 pay increase for Mr Hayes in July, which saw his pay rise from €318,083 to €410,000, after recession-era constraints on top-level pay at semi-State bodies were eased last year.
But documents containing the confidential information obtained by the Mail show his remuneration will be significantly higher than what was announced by the ESB last month – at a time when the cost of Irish electricity is the highest in the EU.
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cost → sign → EU
Mr Hayes’s pay will reach €445,000 next year and €480,000 in 2028 if performance targets are hit.
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targets → reach → 2028
If the final increase is approved, his basic salary will be €161,917 higher than it was before July 2026 – almost 51%.
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it → approve → July
His package also includes the use of a company car, including maintenance and running expenses, pension entitlements and 25 days annual leave.
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package → include → expenses
The pay increase was branded ‘outrageous’ and ‘sickening’ by Aontú leader Peadar Tóibín, who said it should not proceed while more than 320,000 households are in arrears on their electricity bills.
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households → brand → bills
On Tuesday, the ESB reported profits of €377million for the first six months of 2026, up 20% on last year.
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ESB → report → year
Mr Hayes’s pay rise is among more than 20 bumper deals given to CEOs at semi-States since the rules eased.
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rules → give → States
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we → accept → article
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