POLICY: SALARY INCREASES FOR YORKSHIRE CHARITY CEOS BRING THEM INTO LINE WITH REST OF UK
13 November 2008
Chief Executives of charities in Yorkshire and Humber have seen the second biggest rise in salaries in 2008 compared with any other region in the country, according to ACEVO’s 2008 Pay Survey.
The median wage for a charity chief executive in Yorkshire and Humber is £61, 699, up 16.4% since ACEVO’s 2007 pay survey, catching up with the national median salary of £60, 000 for charity chief executives in the UK.
The rise in Yorkshire and Humber is topped only by charity chief executives in the Greater London area, where a rise of 18.8% has been recorded. The salary increase in Yorkshire and Humber compares well with regional neighbours in the North East and the North West where the rise in median salary was 4.1% and 4.7% respectively.
The greatest rise in salaries was seen among chief executives of the smallest charities (income less than £150k) operating in Yorkshire and the other northern regions, with a rise of 57.8%, taking the median to £54, 250.
In contrast, also in Yorkshire and Humber and the north, charities with a larger income (£5m-25m) saw a drop in salaries of up to 9.4%.
Trends in Yorkshire and Humber were generally reflected across the UK with salaries increasing at a rate of 8%, and the biggest rise in salaries found among chief executives of the smallest charities where the ACEVO 2008 Pay Survey recorded an increase of 23.3%
Jenny Berry, Director of ACEVO in the North commented on the findings,
‘It seems fitting that in the year ACEVO has opened a new office in Leeds, salaries in Yorkshire and Humber have seen their biggest ever rise. ACEVO members in Yorkshire and Humber deliver invaluable services to those most in need in the region. They work so effectively because they are well led and professional organisations. Salaries for charity chief executives are now in line with the median for the UK, this shows fantastic progress for the sector in the region and that we are no longer “the poor relation”. It is important to remember that a salary of a chief executive running a charity still lags far behind leaders of equivalent sized organisations in the public and private sector. It is important that charities invest in their leadership, especially in such difficult financial times when their services are so badly needed.’
Worryingly, the ACEVO 2008 Pay Survey showed a widening gap between the pay of men and women chief executives.
It highlighted that the median salary for female charity chief executives is £11,000 lower than the equivalent for their male counterparts. The gap appears to be widening, with in 2008, male chief executives receiving an overall rise in salary of 8%. Compared with 5% for female chief executives.
ACEVO was also alarmed to find that less than one in three charities have people from an ethnic minority on their trustee board. Jenny Berry, Director of ACEVO in the North commented, ‘The sector clearly has work to do on issues of gender and ethnicity of its leadership. Charities have social justice and equality at their core and things must change if we are to reflect this in our top positions. It is essential that our recruitment process are open and we that we continue to mentor aspiring leaders from all parts of society.'
The Pay Survey 2008 was supported by ACEVO’s strategic partner, Rockpools, a firm committed to driving up the standards of governance and professionalism in the third sector.
David Fielding, Rockpools’ Partner and Head of the firm’s Third Sector practice, said, “Diversity at senior levels within the sector remains appallingly low. While the sector has started to come to grips with a range of issues that had previously let it down, much work still needs to be done and identifying and enabling diversity needs to become a primary concern for organisations across the sector."
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