The NCVO and Charity Commission are to work together to develop guidance for charities on how they should set executive pay following last week’s media scandal over pay at top charities.

NCVO chief executive Sir Stuart Etherington (pictured) has today written to his counterpart at the Commission, Sam Younger, to suggest the organisations co-develop an advisory code for trustees on how to go about setting remuneration packages for top executives at charities. The Commission has welcomed the proposal.

The move comes less than a week after a scandal erupted following a Daily Telegraph exposé on the number of executives at aid – and then other - charities, who are paid salaries in excess of £100,000.

It prompted both public disquiet and claims by some Conservative politicians that such charities should be reprimanded or prevented from paying such high packages.

In his letter to Younger, Sir Stuart did not pass comment on the debate but offered for NCVO to identify charity chairs which might work with Commission nominees to develop the guidance.

In a separate statement the NCVO chief said that the public have a right to question how charities spend their money.

“Setting senior staff salaries is a complex task for trustees, who have to balance many factors to determine the right pay level in their organisation,” he said.

“I believe definitive guidance would be a useful resource for trustees and would help give the public confidence that salaries have been properly considered. I’m pleased the Commission are responding positively to our proposal to work together on this.”

In response to the proposal a Charity Commission spokeswoman said: “We welcome this initiative from NCVO… and we would be happy to be involved in a process that supports trustees to fulfil their duties when making decisions.”