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.

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Rowena Lewis, Clore Social Fellow
News

Women CEOs earn 16 per cent less than men 2

Finance | Tania Mason | 17 Nov 2011

Women chief executives in the voluntary sector are paid on average 16 per cent less than their male counterparts, according to Acevo’s latest pay survey.

Martyn Lewis, chair, NCVO
News

NCVO chair states his opposition to paying trustees 6

Governance | Vibeka Mair | 31 Oct 2011

Martyn Lewis, chair of NCVO, has said that both he and NCVO believe paying trustees is the wrong direction to take, and that people should celebrate the voluntary nature of trusteeship.

Sam Younger
News

Charity Commission must resist political correctness in analysing charities' spending, says charity chief 1

Finance | Tania Mason | 31 May 2011

The Charity Commission must not be put off from trying to create a standard format by which charities can report their spending by the complexity of the task, a charity chief executive told the Commission’s chair and CEO last week.

Sally Burton, chief executive
News

Shaw Trust paid nearly £1m in severance packages last financial year 1

Finance | Tania Mason | 19 Apr 2011

The Shaw Trust paid out £915,000 in severance payments during 2009/10 to 15 employees who earned salaries of £60,000 or more, its latest annual report reveals.

Irene Khan
News

Irene Khan hires lawyers to clarify payment details 5

Governance | Tania Mason | 21 Mar 2011

Irene Khan, the former Amnesty International Ltd secretary-general, has instructed lawyers to clarify details about the salary and severance package paid to her when she left the organisation.

Irene Khan
News

Charity Commission has 'no jurisdiction' over board member's payment from Amnesty 12

Finance | Tania Mason | 21 Feb 2011

The Charity Commission has said it has no jurisdiction over Amnesty International making a valedictory payment of £530,000 to its former secretary general – now a Charity Commission board member - because the part of Amnesty that made the payment is not a charity.

Fire Fighters
News

Website attacks directors' salaries at Fire Fighters Charity 2

Finance | Tania Mason | 1 Dec 2010

A website has been created, purportedly by serving and retired firefighters, to highlight the "excessive" salaries paid to directors at the Fire Fighters Charity.

How to mount a defence against a tabloid press obsessed with high pay
Blogs

How to mount a defence against a tabloid press obsessed with high pay 2

Governance | Tania Mason | 16 Jul 2010

Pay is the new expenses. Tania Mason offers three key messages charities could use when the media puts the sector in the spotlight in its campaign against high pay.

Hind offers encouragement for large charities wishing to pay trustees
News

Hind offers encouragement for large charities wishing to pay trustees 3

Governance | Gareth Jones | 7 Jul 2010

Andrew Hind has said there needs to be a better understanding of the Charity Commission’s willingness to allow payment of trustees, arguing that among larger charities “there is increasingly a case for many of those boards to have paid trustees”.

Charity Commission spends £1m on temporary workers
News

Charity Commission spends £1m on temporary workers

Governance | Vibeka Mair | 22 Jun 2010

The Charity Commission spent £1m on temporary staff this year, according to new figures released by the Cabinet Office.

Interim charity managers' pay up 4 per cent
News

Interim charity managers' pay up 4 per cent

Governance | Stefan Marseglia | 29 Jan 2010

Interims working in civil society organisations have seen a pay rise of 4 per cent during the last six months, new research by Russam GMS has revealed.

Dalton comes out against paid trustees and unitary boards
News

Dalton comes out against paid trustees and unitary boards 4

Governance | Tania Mason | 12 Jan 2010

Governance expert Dorothy Dalton has stormed into the debate over whether trustees should sit on unitary boards alongside the executive and be paid for their work.

Paid trustees and unitary boards are wholly inappropriate
Opinion

Paid trustees and unitary boards are wholly inappropriate 3

Governance | Dorothy Dalton | 11 Jan 2010

Is the time right for paid trustees and unitary boards? Dorothy Dalton reports.

Existing governance model is 'bust', says RNIB chair
News

Existing governance model is 'bust', says RNIB chair 1

Governance | Tania Mason | 11 Nov 2009

The existing model of charity governance that gives non-executive trustee boards authority over executive staff is bust and cannot be sustained, the chair of RNIB told an audience of charity chief executives last week.

Improving governance and board performance
Opinion

Improving governance and board performance 4

Governance | Kevin Carey | 11 Nov 2009

This is the full text of RNIB chair Kevin Carey's speech to the Acevo annual conference on Thursday 5 November 2009.

Trade union blasts charity chief executives' salary "greed"
News

Trade union blasts charity chief executives' salary "greed" 1

Governance | Gareth Jones | 10 Nov 2009

Stephen Bubb has hit out at claims by the trade union Unite that an “excessive City pay culture” exists in the charity sector. The union had said it was concerned that some charity chief executives are earning more than the Prime Minister’s annual salary of £197,000, citing John Belcher, who stepped down from his £391,000 a year role at the Anchor Trust last week.

Trustee remuneration: what are the rules?
Regulation

Trustee remuneration: what are the rules?

Governance | 1 Nov 2009

This article by Penny Chapman considers the impact of the Charities Act 2006 (the Act) and recently updated Charity Commission guidance on various aspects of trustee remuneration.

Affinity Trust appoints independent pay committee
News

Affinity Trust appoints independent pay committee

Governance | Tania Mason | 27 Oct 2009

The Affinity Trust, formerly TACT UK, is appointing an independent pay committee to determine how much its board members should be paid, while at the same time applying for charitable status.

NCVO chief to recommend publishing expenses
News

NCVO chief to recommend publishing expenses

Finance | Tania Mason | 24 Jun 2009

National Council of Voluntary Organisations chief executive Stuart Etherington is planning to recommend to his organisation's audit committee that the expenses of all senior management and trustees be published online.

Clarifying trustee payments and expenses
News

Clarifying trustee payments and expenses

Governance | Dorothy Dalton | 1 Aug 2008

The Charities Act 2006 brought in changes which allow charity trustees to be paid for providing their charities with goods and services, and guidance published in June 2008 by the Charity Commission clarifies how boards should handle both these types of payments and general trustee expenses.

The power to pay trustees for non-trustee services
Regulation

The power to pay trustees for non-trustee services

Governance | 1 May 2008

The new Charities Act's provision for a board to pay one or more of their trustees for providing goods and services is now in force. But it's not about payment for being a trustee or for any type of contractual employment in the charity, as Sush Amar explains.

Trustee payment survey - the findings
Surveys

Trustee payment survey - the findings

Governance | 1 May 2008

The Charity Commission recently published the results of a survey of trustee remuneration. The following summarises the findings of this research.

Paying trustees will destroy charities, says Directory of Social Change
News

Paying trustees will destroy charities, says Directory of Social Change

Governance | 7 Feb 2008

With the Charity Commission currently reviewing its guidance on the payment of trustees, Directory of Social Change has taken the opportunity to reiterate its longstanding position that the role of charity trustees should remain voluntary and that they should not be paid. In November DSC surveyed the readers of its monthly e-news to find out if they agreed.

Employing best practice
Legal

Employing best practice

Governance | 1 Jun 2007

A summary of recent changes in employment-related legislation.

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