RTE Director General Kevin Bakhurst has warned the station’s big earners that the cash-strapped broadcaster may not be paying the top salaries across the Irish market any more.
The DG told the Irish Mirror that while the national broadcaster must be competitive to secure top talent, “times have changed” and it “must respond to the times we’re in”.
RTÉ unveiled its new strategic vision plan called “A New Direction” on Tuesday.
READ MORE: RTÉ DG Kevin Bakhurst gives his opinion on Ryan Tubridy's new job announcement
It contained Mr Bakhurst’s plans to make the broadcaster a more “streamlined” organisation. This will see RTÉ employ 400 fewer people by 2028, as well as outsourcing the production of content to independent producers, cuts to content and reducing the number of people earning over €100,000.
It comes as part of the broadcaster’s bid to cut costs by €10m next year.
Mr Bakhurst also announced that no one working in the organisation will earn more money than the Director General. His salary is €250,000 a year.
It means that Claire Byrne (€280,000), Joe Duffy (€350,000) and Miriam O’Callaghan (€263,500) are all facing pay cuts.
Speaking exclusively to the Irish Mirror in his office in Donnybrook, Mr Bakhurst said that top earners’ salaries had been a “corrosive” issue for many years.
Asked if the cap could come down further to below €200,000, Mr Bakhurst said he did not know but did not rule it out. “We need to benchmark constantly against the market,” he said.
“I think at the level we've discussed, we won't necessarily be paying at all the highest salaries for some presenters in Ireland now.
“We need to be competitive enough to attract really good talent, but also show we're spending money responsibly.”
It has been previously argued that presenters in RTÉ were paid high salaries because there was a fear of them being poached.
Asked by the Mirror why someone like Joe Duffy who brings in high levels of advertising to the station should not be paid more than the DG, Mr Bakhurst said that the station must be seen to be spending money wisely.
He explained: “[Joe] does bring a lot to the station. So do Miriam and Claire, [who] are the ones who've been called out because they are earning above what the DG earns.
“I was very aware that the question of higher presenter salaries has been corrosive for RTE for a number of years.
“Yes, RTÉ has been bringing the levels down but from a very high level. I just think to demonstrate to audiences we’re spending money wisely and in the market we are operating in, that's the right level.”
He continued: “I think people expect us to have top-quality presenters. “Those aren't cheap to get. I don't want to get into individual presenters, but the presenters you name, they are top quality. Audiences love them.
“Joe has already said publicly he's extended for his final two years now. But I have a huge amount of admiration for Miriam and Claire.
“Do I want to keep them here? Of course.” Mr Bakhurst said that during the “boom period in Ireland”, RTÉ’s commercial income was “extremely high”.
In 2008, for example, then-Late Late Show host Pat Kenny was paid €950,976, while Gerry Ryan earned €676,354. Ryan Tubridy earned €366,867 that year. Mr Bakhurst said that “times have changed”
“Organisations need to respond to the times they're in, where their money's coming from and what audiences expect,” he said. “RTÉ needs to respond like everyone else.”
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