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TOPIC: Charities to be told to publish full details of top executives' pay

Charities to be told to publish full details of top executives' pay 26 Apr 2014 06:44 #1

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Charities to be told to publish full details of top executives' pay

Charities are to be told to publish details of their senior executives’ pay packets prominently on their websites, under new guidance next week.
A review of charity executive pay by the National Council for Voluntary Organisations will unveil its new “two clicks to clarity” guidance for charity trustees on Tuesday.
The guidance was drawn up by an 18-strong panel of experts after The Telegraph disclosed in a series of reports last year how executive pay had risen sharply at some charities in recent years.
The Telegraph disclosed how some charities who worked in the disaster areas were running bonus schemes for staff, while others paid their executives far more than David Cameron.
The NCVO guidance is expected to tell larger charities to make extra efforts to ensure donors understand their decisions on pay.

Part of this will be a recommendation that full remuneration details of senior staff over a certain salary level are published on charities' websites, with clear signposts of how to get to the right web page.
The charities are also expected to be asked to explain their decisions in setting the pay of senior staff so that donors can understand how the sums are arrived at.
The guidance is understood to have the backing of the Charity Commission, which regulates charities.
Last year's investigation by The Telegraph prompted William Shawcross, the chairman of the commission, to accuse the charities of bringing “the wider charitable world into disrepute” by accepting large pay rises.
Martyn Lewis, the former BBC News presenter and chairman of the NCVO who also chaired the inquiry, said: “I think we need to put power into donors’ hands by getting charities to be up-front about their decisions on pay.
“I don’t doubt that some high salaries are justifiable given the nature of the roles, often leading major, multi-million pound organisations, but charities ought to be willing to justify them directly to their donors and let them decide.
“I hope our report will help charities explain their thinking and address the concerns some donors have raised.”
A senior source close to the NCVO said the review – which attracted 200 submissions from other groups and members of the public - was intended to create “much more transparency than has hitherto been common in any sector”.
The source said: “The idea is to help donors – the idea is to make it really easy so that donors can decide, the power is in the hands of donors.
“The whole point about it is that people can make up their own minds, by charities giving them quick and easy access to the information they need.
“Some people will say ‘I don’t think anyone who works for a charity should ever be paid’. There are others – particularly bigger donors – who actually want guarantees that the charity is going to be well-run and they don’t mind [larger] salaries.”
The Telegraph’s research which found that executives receiving six-figure salaries at Britain’s 14 leading foreign aid charities, and the organisations which support them, had soared during the recession, while donations down in many cases.
Justine Greening, the International Development Secretary, said last year that the disclosures were “a clarion call for charities to be more open about value for money”.
www.telegraph.co.uk/news/politics/107878...-executives-pay.html
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