An Post board in row with Patrick O’Donovan over pay for David McRedmond’s successor Fergal Leamy

A significant disagreement has emerged between the board of An Post, Ireland's postal service, and Minister for Communications Patrick O’Donovan regarding the remuneration for the company's incoming chief executive and key development strategies.

The An Post board held a special meeting last Friday and has formally communicated its concerns to Minister O’Donovan. These concerns extend beyond the CEO's salary to include delays in obtaining government authorization to raise the company's borrowing limit, which has been capped at €75 million since 1984, and approval for a centralized sorting office facility deemed crucial for future development.

Sources indicate the board proposed an annual salary of around €360,000 for the next CEO, Fergal Leamy, who is set to succeed David McRedmond. However, Minister O’Donovan, with the endorsement of Minister for Public Expenditure Jack Chambers, approved a lower figure of approximately €270,000. This decision has reportedly angered the An Post board, whose members believe the proposed salary aligns with a new pay determination system for commercial state companies.

The board's letter to the Minister reportedly states that the ongoing delays are undermining its fiduciary duties and financial responsibilities, particularly as An Post faces increasing business pressures. O’Donovan acknowledged the pay issue, stating it is being considered within the context of anticipated "testing times ahead" for public sector pay demands.