Payslip

In these delicate economic times with charities experiencing shortfalls in funding, there is considerable public interest in the current discussion about remuneration for Chief Executives and other Senior Managers of Charities.

There should be.

The Charitable Sector depends upon public confidence for its existence. If it loses public confidence then ultimately it will lose its funding and the Sector will cease to exist.

That's not to say of course that the issue of how much any particular Chief Executive earns should be a topic of conversation around the dinner tables of Chelsea or Morningside. The issue ought however to be discussed at Board level in each Charity. In addition to having regards to any guidelines which the Charity Commission or OSCR may give, Charities should ensure that they have in place, and actively review, a proper remuneration policy. They should ensure that their remuneration policy includes provision for bench marking and otherwise justifying the level of remuneration which is set.

If a Charity sticks to these brief guidelines then there can be little justification for adverse public comment. If, however, the Charity sets remuneration levels without regard to value and a properly considered remuneration policy then it probably does deserve all the negative comment which it gets.

To find out more about the employment law for charities service provided by Turcan Connell, click here.