Friday, December 15, 2006

Public Sector Rich List - pay and good governance

This makes interesting reading. The Taxpayers' Alliance have published their Public Sector Rich List. (The list does not of course include the social housing sector where there have been controversies.)

There are three people in the public sector who earn more than £1 million a year. The Prime Minister is only the 86th highest paid person in the public sector.

I don't have a problem with high salaries in the public sector - as long as they are rewards for success rather than failure.

I do worry that some organisations in the public and not-for-profit sectors have weak arrangements for the scrutiny of executive remuneration and appraisal. Unless robust arrangements are in place, it can all end in tears and another huge pay-out when senior managers aren't up to their roles.

When did your organisation last review the adequacy of it remuneration committee and arrangements for the remuneration and performance of top staff?

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