Friday, 06 March 2015

Average chief exec salary tops £150k

The chief executives of England’s largest housing associations are paid £11,000 more than the prime minister on average, according to an Inside Housing survey.

Fifty two bosses of the largest 100 UK housing associations took home more than the £142,500 earned by David Cameron. The average salary of those polled was £153,353.

The results emerged as housing minister Grant Shapps’ rounded on chief executive pay at the National Housing Federation conference, stating that the public ‘want to know how many people [here] think that their job is tougher than being prime minister’.

‘I want to know how it can be justified to pay enormous salaries which are ultimately being paid for either through the hard work and toil of taxpayers or worse, from the rents of tenants who may be the people in society least able to afford your salary,’ he said.

Mr Shapps also called on associations to follow his department’s lead and publish details of all spending of more than £500 in a new ‘spirit of openness’.

Inside Housing’s annual chief executive salary survey reveals that the highest paid housing head in 2009/10 was Jane Ashcroft, chief executive of Anchor Trust. She received a total package of £290,000.

Anchor chair Aman Dalvi said: ‘Remuneration as a proportion of turnover remains significantly less than many housing associations pay to their chief executives.’

Other high earners include David Bennett, chief executive of Sanctuary Group, who took home £285,444, and David Cowans, chief executive of Places for People, who received £279,095.

The highest bonus of £22,000 went to Keith Exford, chief executive of Affinity Sutton.

There are signs housing associations are showing increasing restraint when awarding bonuses. Sixteen per cent of housing association chief executives received discretionary performance related pay in 2009/10 – compared with 71 per cent in 2008/09.

David Orr, chief executive of the NHF defended the high salaries received by housing heads. ‘Running a housing association is a complex task,’ he said.

The full results of Inside Housing’s 2009/10 chief executive salary survey will be published in the magazine and online this Friday.

Readers' comments (12)

  • The NHF are now attempting to defend in indefensible. David Orr needs to be careful he does not end up sounding like Gordon Taylor - head of the professional footballers association. My suggestion to Mr Orr is to remain quiet- its for the CEO's to justify there salaries not the NHF.

    I repeat what I said elsewhere yesterday- there is no justification for any HA CEO earning more than £200k- those that argue in support of high salaries by making comparisons with the private sector, the need to attract the right talent into the sector etc are talking complete boll*cks. I’m fairly confident that Keith Exford, David Cowans, David Montague et al, would still be willing to work in their respective organisations for ½ of their current salaries. If not I sure somebody as equally talented and qualified and perhaps with (dare I say) a little more integrity would be prepared to step in!

    But equally the comparison with the PMs salary is, for reasons already stated elsewhere, boll*cks. Perhaps the benchmark should be the salary of the highest paid Local Authority CEOs with the largest HA’s CEOs paid 2/3 of that salary. Given all the CEOs are in Birmingham this week at the NHF annual bun fight – the salary of the CEO of Birmingham City Council (the largest LA in Europe!) could be the benchmark. I’m sure not even the great David Cowans could argue his job his more high profile, demanding, diverse etc than this!

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  • Only One

    It's the annual 'Kick CEO's salary' season at the CIH. Every year the same issue. Every year the same moans. How much is the sector worth? How many properties to they provide? What about additional services in the supported housing sector? What about the employment in the construction sector (Cap thier CEO salary and they can build cheaper?). The PM salary is a misnomer - Blair has earned more, substantially more, after leaving office than he ever did as PM. Let's see what opportunities open up for David Cowans when he stands down. I can't see any lucrative book deals, after dinner speeches, or tours of USA being offered........

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  • As has been previously posted, ad nauseam but more recently by "Only One", comparing RPs CEO pay to the Prime Minister is a joke.

    When David Montague, David Cowans, Deborah Shackleton, etc leave their jobs, will they be able to command the same consultancy or after-dinner speaker or 'author' fees that the ex-Prime Minister of the UK is always granted? No.

    Being PM is undoubtedly difficult and stressful, but so is being CEO of any organisation, and the remuneration thereof should be decided by the RP's Board and the rest of you should all shut up and get on with life, and try to make the lives of people who have to rely on RPs better in any way we can.

    Our CEO is a 'top bloke', has worked his way up through the ranks and, in my opinion, deserves every penny he gets (and, for the record, it's less than the PM is paid, is the same this year as it was last, doesn't get a bonus, etc).

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  • "Difficult and stressfull" Job = 6 figure salary???? GET REAL PLEASE
    I like to see the average CEO work a weekend shift at a busy A&E-or how about a 48hr stint in Helmand.
    In the private sector 6 figure salaries are usually performance related and if you mess up -your out the door- RSL/LA CEO's are often immune from and also frequently get rewarded for failure and worst case scenario simply move on to another RSL/LA until they retire on a fat pension.

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  • Eva Silver

    Leadership and Governance most wouldn't know if it come bit them on the bum.

    I agree with Anony 9:56 a.m. - I've suggested that staff give us some free time like resident give free time. Expecting us to turn up at meeting and sit on board's and sit on Committee's and pick our brains. When you ask where is the suggestions from staff. None. Never turn up at the meeting giving up free time. Most of the staff do not know what Co-Regulation is.

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  • Eva Silver

    Anony 09:27 a.m. tell who he is we looking for a top bloke. If he is a top bloke tell us whom he is.

    Come on give credit where credit is due. Or is your Housing Association under your Code of Conduct telling you that you cannot go out to the public agenda

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  • McMadman

    The only people "talking complete boll*cks" are Pendleton Red and Grant Shapps.

    The correct comparator is not public/private sector. It is turnover, size and scale of the business. Simple as.

    Surprised not to see Kass's usual rant yet about greed in the sector but no doubt it will appear in this thread shortly. I suspect many of the complainers (Shapps included) simply do not have the necessary skills, competence and experience to do such a job and are simply jealous.

    Shapps should be asked if he will condem CE's in the private sector from earning similar sums for running organisations of comparable size, turnover and complexity. Of course he will say no. Typical tory hypocrite.

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  • Presumably the rationale here is that RSLs receive public money hence the government has some form of right in having a go at CEOs salaries.

    The banks received how many billions of public money!!!!!!!!!!


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  • Chris Webb

    The rail companies receive £5BN in public subsidy each year, yet still charge through the roof - yet not Minister gives a hoot about their salaries and bonus payments! Why don't the millionaire club, otherwise called the Cabinet (how sad Shapps does not have the family funding to be a member of this elitist band), put their money where our mouths are?

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  • I must say as a resident of Guinness Northen Counties our CEO is outstanding ever since she took the role of CEO she has kept her word and works more than 70 hours per week often in her office at 6 in the morning. Always engaging with residents attending resident events at weekends. In my mind is worth every penny. I know that not all CEO are the same but they should take the lead from our CEO. If there was an award for the best RSL CEO she would get it.

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