Nicky Jermyn has stepped down as CEO of St Vincent's Public Hospital.

However, he is remaining as CEO of the St Vincent's Healthcare Group, which encompasses the private and public hospitals on site and St Michael's Hospital in Dun Laoghaire.

Mr Jermyn has been at the centre of some controversy in recent months over the level of his earnings, which came under scrutiny by the Fail Public Accounts Committee (PAC). He was earning close to €300,000 per annum including top-ups.

He was receiving just under €293,000 per annum, including €136,591 in a salary top-ups. His remuneration was higher than that of the Taoiseach or the Director General of the HSE.

It had been indicated by the hospital group that in the wake of this controversy Mr Jermyn's role would change.

St Vincent's came under considerable public criticism in recent months as a result of its initial reluctance to cooperate with the PAC on its compliance with public pay policy.

"My decision was taken in the context of the developments in recent months, and to ensure that all the staff in the hospital can continue to focus on providing our patients with the care and attention they deserve," Mr Jermyn said today.

"I am in discussions with the Board about my future role. Although I am no longer responsible for the University Hospital, I remain as Group CEO of the St Vincent's Healthcare Group."

It is expected that Mr Jermyn will now take a drop in salary as a result of relinquishing his St Vincent's public hospital role.

Current Chief Operating Office Killian McGrane is to take over Mr Jermyn's role at the public hospital pending the appointment of a permanent CEO.

A St Vincent's Healthcare Group spokesperson said in relation to the hospital's compliance with public pay policy, it is not aware of any outstanding pay compliance issues.

Many voluntary hospitals which have not been in compliance with public health policy are currently making business cases to the HSE for retention of some top-up payments.