RTÉ welcomes publication of reports

RTÉ has today welcomed the publication of three reports by the Minister for Tourism, Culture, Arts, Gaeltacht, Sports and the Media, Catherine Martin TD: The Report by the Expert Advisory Committee on Contractor Fees, HR and Other Matters and the Report by the Expert Advisory Committee on Governance and Culture, as well as the Mazars Report into RTÉ’s use of its barter account.

RTÉ accepts in principle the recommendations made in the two Expert Advisory Committee Reports. To ensure we can formally respond in full within the timeframe suggested, the Board of RTÉ and RTÉ’s Interim Leadership Team will now take time to fully review all three reports, including the recommendations. RTÉ has begun a programme of works to deliver on the recommendations, as outlined in Note 2 below.

On behalf of the RTÉ Board, Chair Terence O’Rourke, said: “RTÉ has supported both Expert Advisory Committees and Mazars in their work and we welcome the publication of their reports by Government today. Their analyses and their recommendations, all of which we accept in principle, will make a significant contribution to the task of rebuilding trust in RTÉ. RTÉ is tasked with providing a vital public service. The organisation’s corporate governance, transparency and operations must be of a standard commensurate with that mandate.   The Board is focused on returning RTÉ to levels of corporate governance and transparency that should define it.  We look forward to working with Government, staff in RTÉ and all our stakeholders, in delivering the process of transformation that commenced last year.”

RTÉ Director-General, Kevin Bakhurst said: “We welcome the publication of the three reports by the Minister and accept in principle the recommendations included in both Expert Advisory Committees. We have worked closely with both Committees and with Mazars since last year to provide all information available and enable the completion of the reports.

We understand the need to restore trust in RTÉ following a succession of revelations last year and I hope it is clear that we take the issues which have emerged very seriously. It is in this context that we are publishing today, in Note 1 below and line with our previous commitment, details of the total amount of compensation paid to key management personnel in 2023, usually reported in RTÉ’s annual reports. The termination benefit amount includes legal fees. The events of last year are a source of deep frustration and disappointment to all of us in RTÉ and those connected to this organisation. We have already undertaken major reform of RTÉ and addressed many of the recommendations included in the reports and we are committed to continuing on this process of reform, now with the benefit of recommendations set out in the reports today. We will respond formally and in full when we have taken time to give the reports full consideration.

I would like to thank everyone who has continued to support RTÉ by paying their TV Licence and I would also like to acknowledge our employees and partners in the independent sector for their ongoing dedication and commitment to delivering important and engaging public service programming and content to audiences, every single day, across RTÉ’s television, radio and online services during a very challenging period.”

Details of the total amount of compensation paid by RTÉ to key management personnel in 2023, including legal fees, are included in Note 1 below, following RTÉ’s previous commitment to publish these details in advance of publication of RTÉ’s Annual Report 2023. None of the former members of the RTÉ Executive, written to by RTÉ, has consented to waiving their right to confidentiality regarding exit payments. A list of the changes introduced since July 2023 as part of RTÉ’s agenda of reform and transformation is included in Note 2 below.

Notes:

Note 1: Transactions with key management personnel

For the purposes of the disclosure requirements of IAS 24 Related Party Disclosures, the term “key management personnel” (i.e. those persons having authority and responsibility for planning, directing and controlling the activities of the company) comprises the RTÉ Board, the Director General, the RTÉ Executive/Interim Leadership Team and the corporate functions reporting directly to the Director-General. The total amount of compensation paid to key management personnel in 2023 was €4.0 million (2022: €3.3 million), comprising salaries and other short-term employee benefits of €2.9 million (2022: €2.6 million), post-employment pension benefits of €0.4 million (2022: €0.4 million) and termination benefits €0.7 million (2022: €0.3 million).

Note 2: RTÉ Reforms since July 2023

Communications at board level:

– The Board Handbook is being updated to collate in one place all the legislative, regulatory and codes of practice obligations of RTÉ.
– The Board is undertaking a review of its skillset.
– The Terms of Reference for the Remuneration and Development Committee have been updated to include such matters as (but not
limited to):

> Approval of the remuneration of executive management and any amendments, including exit packages;
> Approval of the remuneration of RTÉ’s top 15 highest earners;
> Consideration of the remuneration of any non-Government appointed members of Boards of RTÉ subsidiary companies;
> Setting and periodically reviewing the objectives, role and reporting line of the Group Secretariat;
> Overseeing any major changes in employee benefit structures throughout the RTÉ group.

– The Remuneration Committee met 7 times in 2023, compared to 5 times in total in the period 2017-2022.
– The Terms of Reference for the Audit and Risk Committee, Remunerations Committee and Programme Committee have all been
reviewed and updated.
– All committee and sub-committee meetings are minuted and the chairs of each committee prepare a written report on their activities which is
presented at scheduled Board meetings.
– The Audit and Risk Committee has committed to review the Internal Audit Charter and RTÉ’s approach to compliance with the Code of Practice for the Governance of State Bodies.

Communication between RTÉ Board and management

– The Director General now provides a full written monthly report to the Board.
– All Minutes from the meetings of the Interim Leadership Team are now submitted to the Board.
– Increased and regular communication between the Board and Executive on all corporate activity.
– Integrated planning and engagement sessions regarding next Statement of Strategy between Board Sub Committee and members of the ILT.

Leadership Change

– In July 2023, the Director General stood down the former Executive Board and appointed a new Interim Leadership Team, comprising a combination of existing and new Senior Executives, to lead the organisation, pending the expected appointment in 2024 of a permanent leadership.
– Following an external competition the appointment of a new Director of Commercial and a new Chief Financial Officer.
– Appointment of a new Company Secretary as a new and distinct role in January 2024
– Finalisation of all other roles for the Permanent Leadership Team anticipated to be completed later in 2024.
– The full Interim Leadership Team now formally considers all significant matters and decisions from across the organisation (including top presenter salaries).
– A new terms of reference has been developed for the Interim Leadership Team and has been ratified by all serving members.
– During his term of engagement, the governance expert appointed by the Director General has attended meetings of the Interim Leadership Team and advised them on best practice.
– The full Interim Leadership Team now approves the salaries and contracts of new presenters, before approval by the Board’s Remuneration Committee

Staff Engagement

– A new senior management group comprising over 65 employees has been established.
– A new staff consultative forum has been established to meet periodically with the DG and members of the Interim Leadership Team.
– RTÉ initiated three surveys seeking staff feedback on health and wellness; governance concerns, perceptions and suggestions; and feedback on the New Direction document.
– Since July, the Director General and representatives from the Interim Leadership Team have maintained an ongoing dialogue with representatives from the Trade Union Group and with RTÉ’s Managers’ Association.
– Director General has made a commitment to monthly ‘Town Hall’ briefings across 2024 on a range of key organisation issues and staff suggestions.

Risk management

– A new enterprise risk management programme will be introduced in 2024 to better integrate risk management into decision-making and ensure risks are managed appropriately.
– RTÉ is reviewing risk management resourcing
– The Interim Leadership Team now reviews the organisation’s Risk Reports on a monthly basis
– A new Risk Management Policy is in development.
– Ongoing reporting to the Audit and Risk committee.

Improved Financial Controls

– A new formal approval process has been established for significant expenditure projects, which goes through both the Interim Leadership Team and the Board.
– All submissions to the Board relating to expenditure approvals must now include a risk assessment and a business case.
– The level above which Board authorisation is required has also been lowered to €1 million. This applies to sports rights, programme acquisitions, programme commissions and operating expenditure.
– Operation of RTÉ’s barter account is now subject to signed Agency Deal Memoranda and restricted to airtime trading; the proceeds are transferred quarterly to an RTÉ bank account.
– Any expenses are now budgeted for and recorded under the overall RTÉ general expenses procedure, overseen by Finance.
– RTÉ is currently developing and will implement a new policy around the Contra account to formalise the process and framework around any contra deals (such as ticket purchase and sales; buying learning packages etc.).

Development of a new Strategy and Vision for RTÉ

– In November 2023, RTÉ published A New Direction – a Strategic Vision document that provides the framework for the development of the Statement of Strategy 2024 – 2028, and which it opened to public & stakeholder consultation.
– A New Direction sets out a 10-point plan for RTÉ over the coming years, including a new approach to financial management and a commitment to develop a new framework for better governance.
– The Vision document also sets out that RTÉ will develop and implement a new Commercial Strategy from 2024, with a new Commercial Director appointed.

Transparency Measures

– A Register of Interests, A Register of Gifts, and Register of External Activities has been developed and formally communicated to staff.

Review of governance and development of a new governance framework

– In July 2023, RTÉ engaged a governance expert to support the organisation in reforming its governance framework.
– It is expected that the new governance framework will be finalised in June 2024