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Jamie Lawrence


Insights Director

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New crackdown on spiralling charity executive pay


Hundreds of thousands of Britain’s charities will soon be issued with a new code of conduct about setting appropriate levels of remuneration for senior executives.

The new code of conduct follows revelations by The Daily Telegraph that pay for charity executives had risen sharply, despite the economic downturn.

The National Council for Voluntary Organisations – which has 10,000 members and represents charities in England – will draw up the new code of conduct. The Charity Commission, the charity regulator, is working with the Council to publish the guidance.

According to the Telepgraph, the new guidance is likely to recommend that independent trustees chair remuneration committees and that they be given independent advice on the most appropriate compensation for senior figures.

Chief executive of the National Council for Voluntary Organisations, Sir Stuart Etherington, said: “The public are right to ask that their donations are spent effectively and efficiently. 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.

“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.”

Interesting that this is going ahead – is it only a matter of time before for-profits receive the same treatment?

Author Profile Picture
Jamie Lawrence

Insights Director

Read more from Jamie Lawrence

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