BONUS payments made to the chief executives of government-owned entities have gone beyond a fair and appropriate level in some cases, the Chief Minister has said.
Deputy Lyndon Farnham told the States Assembly yesterday that while he was in favour of the payment of bonuses when they were justified, he did not believe this was always the case.
The Chief Minister was asked by Deputy Steve Ahier if he felt bonuses for top execs was justified. Deputy Ahier said that a report published last week showed annual reports of seven States-owned entities detailing bonuses earned by chief executives.
This include Matt Thomas of Ports of Jersey and Mark Siviter of Jersey Post, each of whom was paid a 2024 bonus of £120,000, while Chris Ambler of Jersey Electricity collected a £115,400 bonus and a deferred bonus of £44,200. Darragh McDermott of JT Group was awarded a bonus of £106,000 and a long term incentive plan of £74,000.
“The majority of Islanders would not believe this was appropriate given the very average performance of some of those States-owned enterprises,” Deputy Ahier said.
Deputy Farnham responded: “I need to look at the individual cases but I do share the concern about the level of bonuses, they should be set at a fair and appropriate level and I think in some circumstances that has been exceeded.”
The other chief executives referenced in the report published last Friday were Ian Gallichan of Andium Homes, whose 2024 bonus was £27,300, Helier Smith of Jersey Water (£43,000) and Jersey Development Company’s Lee Henry (£65,000).
Earlier in the sitting, Deputy Jonathan Renouf asked Assistant Treasury Minister Ian Gorst whether he thought it was “appropriate” that Mr Thomas received a £120,000 bonus in 2024, given that the year ended with what Deputy Renouf described as “a botched management reorganisation, which led directly to the Airport to be put into special attention on 10 December”.
Jersey Airport was placed under “special attention” for six months following a restructuring of senior positions which resulted in several staff leaving the organisation.
Mr Thomas’ total remuneration in 2024 was £456,000, including a base salary of £290,000, bonus and pension contributions.
Deputy Gorst – who was speaking on behalf of Treasury Minister Elaine Millar – said it was “difficult” for him to answer for Deputy Millar but he added that he was “perturbed” by the structuring, and size, of bonuses at arms’-length organisations when he held the position of Treasury Minister.
“I know that the minister herself is exercised by those bonuses and their structuring,” Deputy Gorst said.
