EirGrid plc Annual Report 2011

EirGrid plc Annual Report & Accounts 2011
The Group has put in place a framework for
monitoring and reviewing the effectiveness of
internal controls, including its risk management
process. The Directors confirm that they have
reviewed the effectiveness of the system of internal
control operated during the period covered by
these Financial Statements. During the course
of this review, the Board has not identified, nor
been advised of, any failings or weaknesses which
it has determined to be significant. Therefore a
confirmation in respect of necessary actions has
not been considered appropriate.
The Group has had an Internal Audit and Compliance
function since January 2003. It is also the Group’s
aim, at all times, to comply with agreed reporting
requirements of Government departments as
required on a timely and accurate basis.
The Board is satisfied that the direction and control
of the Group is firmly in its hands.
Directors’ Remuneration
The Financial Statements include €127,000 (2010:
€135,000) for Chairperson’s and Directors’ fees,
in accordance with the Department of Finance
approved levels of remuneration for the Chairperson
and Board Members of State Bodies. On 14 May
2009 the Department of Communications, Energy
and Natural Resources issued an instruction that
Chairperson and Directors’ fees be reduced, effective
1 May 2009. Prior to this instruction being issued the
Chairperson and Directors had already decided to
take a voluntary 10% reduction in their fees. Under
the approved remuneration levels, the Chairperson’s
fees were equivalent to €21,600 per annum during
the year (2010: €21,600 per annum). Directors’ fees
were equivalent to €12,600 each per annum during
the year (2010: €12,600 each per annum).
The only executive Board Member is the Chief
Executive, Dermot Byrne. The Chief Executive’s
remuneration is set within a range determined by
the Department of Public Expenditure and Reform
and the Department of Communications, Energy and
Natural Resources. It is determined annually, within
this range, by the Remuneration Committee, which
comprises non-executive Board Members, and is
approved by the Board.
The remuneration of the Chief Executive consists
of basic salary, performance related pay, taxable
benefits and certain retirement benefits.
The performance related pay provides for a bonus
payment of up to 35% of basic salary, of which up
to 15% is related to multi-annual objectives.
The level of performance related pay is determined
by the Remuneration Committee, based on an
evaluation of performance against an agreed set
of objectives. In his role as a Board Member the
Chief Executive receives a fee, as determined by
the Minister for Communications, Energy and
National Resources with the consent of the
Minister for Public Expenditure and Reform.
The retirement benefits of the Chief Executive are
calculated on basic pay only and aim to provide in
retirement a pension of one-eightieth and a gratuity
of three-eightieths of salary for each year of service
as Chief Executive. The increases in accrued pension
and accrued gratuity excluding inflation during
the year to 30 September 2011 were €2,845 (2010:
€2,845) and €8,535 (2010: €8,535) respectively.
The total accrued pension at the end of the year
was €17,770 (2010: €14,925) and the total accrued
gratuity was €53,310 (2010: €44,775). The transfer
value of the relevant increase, net of the Chief
Executive’s own personal pension contributions
was €47,087 (2010: €43,893).
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