RTE Pays €475,000 Severance to Executive Amid Financial Crisis

A severance payment of nearly €475,000 has been made to a former member of the RTE executive board, raising questions about the broadcaster’s financial management. This payment occurred despite the Irish Government’s intervention in June 2024, which included a commitment of ring-fenced funding to support the struggling broadcaster over the next three years.

RTE’s annual report for 2024, which was approved by the Cabinet and published recently, revealed that the severance payment included contributions to legal fees. While the report did not disclose the identity of the recipient, it confirmed the amount agreed upon was €475,000. At a meeting of the Oireachtas Media Committee last June, Terence O’Rourke, chair of the RTE board, indicated that negotiations were underway for an exit payment of up to €400,000 for the same individual.

In August 2024, RTE announced that Jim Jennings, the director of content, would be leaving the organization. Director General Kevin Bakhurst expressed satisfaction regarding the terms of Jennings’ departure, which was reached with assistance from the Workplace Relations Commission. The annual report also noted that, in the previous year, RTE issued two severance payments totaling €768,000.

Minister for Media Patrick O’Donovan commented on the payment during an interview on RTE’s News at One, indicating that it was considerably high. He stated he would discuss the severance issue with O’Rourke in the coming week. O’Donovan highlighted that RTE is aiming for a headcount reduction of up to 400 employees, representing approximately 20% of its workforce. However, the report cautioned that achieving this target may be challenging due to various factors, including a delay in the Voluntary Exit Programme (VEP) approval and low staff turnover.

O’Donovan expressed concern about the broadcaster’s ability to meet its goals, stating, “If they can’t get to 100 this year, how are they going to get to 400 over the next couple of years?” He emphasized that government support was crucial for RTE’s survival, noting past instances where companies failed to receive such assistance due to internal mismanagement. He underscored the necessity for structural reform within RTE, stating that the support provided by the government is not infinite.

The report also highlighted a significant increase in RTE’s expenditure on hospitality, which rose from €1.2 million in 2023 to €2.4 million in 2024. This includes €2.06 million spent on employee vouchers.

In terms of salaries, the report listed RTE’s highest earners, revealing that four of the top ten paid presenters have either left or are set to leave the organization. Joe Duffy, the former presenter of Liveline, retained his position as the highest-paid presenter, earning €351,000. Clare Byrne, who is transitioning to Newstalk, followed with €280,000. Ray D’Arcy, whose contract was not renewed, earned €220,409, a decrease from €250,000.

Other notable salaries included Mary Wilson at €209,545, Patrick Kielty at €257,657, Miriam O’Callaghan at €246,708, and Brendan O’Connor at €244,099. Newcomer Dáithí Ó’Sé entered the top earners list with €196,885. RTE’s environment correspondent George Lee and sports presenter Darragh Maloney also saw increases in their earnings.

RTE Director General Kevin Bakhurst received a basic salary of €250,000, with total remuneration, including pension allocations and allowances, reaching €339,954. As RTE navigates these financial challenges, the emphasis remains on addressing both operational efficiency and staff management.