ALMO pays chief exec £260k per year
Hammersmith & Fulham Homes is paying its chief executive more than twice the average salary of the heads of England’s largest arm’s-length management organisations.
The 18,000-home ALMO has been employing Nick Johnson on a £260,000 consultant’s salary for the past two years.
He has been employed on an interim basis by Hammersmith & Fulham Council since he started in 2008. The average salary for the chief executives of the sector’s five largest ALMOs is £123,286.
The council has not renegotiated the terms of Mr Johnson’s contract since he started at the ALMO.
Hammersmith & Fulham Council said that it had always intended for Mr Johnson’s appointment to be a temporary one prior to bringing management of its stock back in-house. It advertised for a new housing director in September.
Mr Johnson joined H&F Homes after leaving his former post as chief executive of Bexley Council on health grounds. He continues to receive money from his £50,000 final salary pension scheme at Bexley.
Mr Johnson was employed as a consultant to turn the ALMO around when it failed to get the two stars needed to release decent homes funding in its Audit Commission inspection. His initial contract has continued to the present day.
Hammersmith & Fulham Council insisted that Mr Johnson had provided value for money and that he had the council’s full support.
A spokesperson said: ‘He is actually doing three jobs at the moment: as well as doing the chief executive job, he’s covering two executive director roles.
‘He was appointed as a temporary measure, and brought the ALMO from a one-star organisation to a two star in just six months. He has saved us £500,000 by cutting the management team.’
The council plans to close H&F Homes from March 2011, which it hopes will save more than £400 million now that its £230 million decent homes programme is complete.