The average annual remuneration of the chief executives of the 40 Irish publicly listed companies (PLCs) over 2020 and 2021 was €1,296,830, according to a new report.
The study also found that 29.3% of executive directors of the Irish PLCs are now female, an increase of 13% on 2017.
However, 10% of the businesses had no female directors at all and 22.5% had only one woman on their board.
The 2022 Ireland Board Index, produced by consultancy Korn Ferry, discovered that 30% of companies now have a dedicated Environmental Social and Governance (ESG) committee as the issue becomes one for the full board and not a department.
The report also established that the pay levels of executive directors in the firms over the period were lower than during 2019/2020 because of reduced incentive-based payments, salaries and fees as a result of the impact of the Covid-19 pandemic.
However, bonuses for the current period are higher because targets were reduced because of the pandemic's effects and performance then bounced back.
The findings are based on empirical data gathered on Irish plc boards as well as through the insights of 15 directors, CEOs and chairs.
40 companies were looked at which collectively had 345 directors.
Chief financial officers were on average paid €923,030 per annum during the period and executive directors received €980,730.
Chairperson’s remuneration averaged out at €237,710 across the period while non-executive directors took home €107,390.
9% of directors now have strong experience of the tech sector, with the skill now being seen as vital for boards.
"The challenges facing Irish directors are increasing and intensifying," said Managing Director of Korn Ferry Ireland, Bob Casey.
"Boards are being presented with more complex and vigorously enforced regulation and the demand for accountability is resulting in greater financial and reputational risks," he said.
"These challenges can be pinned down to three key themes: the evolution of ESG from niche to norm, the increased focus on DE&I across all levels and parts of the organisation, and the accelerating pace of digital transformation," he added.
The study also found that the average age of non-executive directors has risen to over 61, despite the interviewees indicating that boards need to reflect employees and the customer base.
The results indicate that nearly half of all non-executive directors come from either the financial or professional services sectors.
The average board size was 8.6, up from 7.5 in 2018, with the average number of committees coming in at 3.65.
While 95% of boards have at least one non-Irish member, 42.5% have only Irish and British members.
Diageo had the highest proportion of women on its board, with 60% female, followed by Dalata at 50%.
