Acevo is to publish its own Good Pay Guide that will consider executive salaries in the context of a charity's effectiveness, its chief executive Sir Stephen Bubb announced today.

Giving evidence to the Public Administration Select Committee hearing on the issue of charity salaries, Sir Stephen said Acevo's new guide would emphasise that the overall objective of a charity is to deliver public benefit and that executive salaries should be viewed in relation to that objective.

Supporters and members of the public ought to judge charities on their performance and the impact they have on their beneficiary group, and executive pay is only one aspect within this, he said.

"One of the key points to consider is around value for money, around the impact you make as an organisation, and good leadership can make the difference between a good organisation and a bad organisation," Sir Stephen said.

"You could argue that if you pay a chief executive £50,000 and they are not delivering on the charity's objectives, then that is not money well spent. But is you pay £150,000 and they are absolutely delivering on their objectives, then that is a good investment."

Acevo's guide will be separate from the report that will be produced by the NCVO pay inquiry, which will contain various principles to guide trustees when they are setting executive salaries.

Bubb conceded that it was time the sector was more transparent about pay and said that Acevo's next annual report would publish his actual salary - currently £104,000 - rather than just his salary band.

At first, he said, he was "horrified" when he saw the Telegraph articles on charity pay, describing them as "unbalanced".  But under questioning by Committee member Priti Patel MP as to whether he did not think the reports "served a degree of public interest", Bubb admitted that because of the recent interest in remuneration in the public and private sectors, charities could not continue to escape the public glare.

"You are right, we have to be more transparent about pay, and about our investments as well," he said. He singled out Christian Aid as an exemplar of transparency after the Telegraph stories hit the public consciousness, as it responded very quickly and effectively.