A lot is riding on the Telecom Eireann flotation. It has obvious implications for the company itself and the many thousands who will invest.

But its success - or otherwise - will also be crucial in determining whether the Government is able to press ahead with other planned privatisations. Aer Rianta, Aer Lingus and Coillte are all possible candidates.

Naturally if the float goes well and investors make money then the public appetite will be whetted for more.

But the public perception will also be influenced by other factors. And something which must be guarded against is allowing the group's top executives to cream off exceptionally large profits.

Malcom Farrell, the new chief financial officer, is believed to be on a salary package worth some £250,000 per annum, meaning that chief executive Alfie Kane will - if he is not already - be paid somewhat more. These are generous packages on any criteria and no doubt both are incentivised with the possibility of further bonuses.

It is appropriate that senior executives in big companies are paid well. But it is not appropriate that they earn unreasonably large amounts of money from flotation share options.

Put simply, senior management at Telecom should not be given options to buy vast amounts of shares at a flotation price which will be pitched at a level which guarantees an initial rise. Instead their options should be strictly tied to delivering on company performance after the flotation.