Remuneration

Public interest in remuneration in the sector tends to focus on two main topics – the salaries paid to chief executives and senior staff, and whether or not a charity pays its trustees.

Senior staff salaries are generally lower than equivalent salaries in the private and public sectors, and some commentators argue that charities should be able to pay much more in order to attract the best talent.  But public opinion still tends to err on the side of caution and there is outcry if a charity is deemed to be spending too much on its chief executive’s salary.

The issue of trustee remuneration is just as emotive – there are strong lobbies within the sector both for keeping trusteeship voluntary and for paying trustees for their efforts.  Those who support the latter say payment would help to increase diversity among trustees; those who support the former say it would contravene the very concept of charity.  Charities are allowed to pay their board members in certain circumstances but must obtain permission from the Charity Commission.