News

Charity chief executive pay level drops 1

Finance | Vibeka Mair | 27 Nov 2012

The median annual salary of a charity chief executive has decreased by 3.1 per cent, from £60,000 to £58,139, according to data from the Acevo Pay Survey 2012.

Acevo and Attenti quizzed 576 chief executives on their pay and bonuses and found 51 per cent of all charities chief executives saw their pay freeze or fall in 2012. Of those who did have pay rises, 65 per cent saw their pay rise in line with inflation only (a 0 per cent rise in real terms).

Collectively the gender gap in chief executive pay has reduced - the median salary of a male chief executive is £62,000, compared to £54,500 for female chief executives – a £7,500 difference or 12.1 per cent. In 2011, this difference was £10,100 (or 15.9 per cent).

However, when charities were divided by size, the survey found the median pay of male chief executives at charities with incomes over £5m is £90,000, whereas for female chief executives it is £80,000 – a £10,000 difference.

By contrast, at small charities the median salary is £42,050 for men and £42,558 for women; at medium-sized charities the median pay is £63,000 for men and £61,247 for
women.

While CEOs of organisations of annual incomes under £5m are equally divided between men and women, those with incomes of £5m and above are twice as likely to be men.

Commenting on the results, Sir Stephen Bubb, chief executive of Acevo, said: “This year’s Pay Survey results show that voluntary sector leaders are reacting responsibly to the financial problems of the sector by exercising pay restraint.

"A majority of CEOs have taken a real-terms pay cut which demonstrates their commitment to adapting to changing circumstances. However, there is still work to do on improving diversity. We must make sure we maintain the diversity of our sector as it adapts to new challenges.”

Directory: Association of Chief Executives of Voluntary Organisations (ACEVO)
Who's Who: Sir Stephen Bubb