Pay-off renews fears of 'gravy train' image
The Housing Corporation has had concerns over the pay-off of another departing chief executive, it emerged this week.
The agency is said to be unhappy about a payment for departing Touchstone Housing Association chief executive Bill Martin, in a move which will fuel criticism of the sector's ‘gravy train' image.
The revelation came as Liver Housing Association was given the green light to merge with Grosvenor Housing Association, paving the way for the exit of chief executive Elaine Price-Taylor, company secretary Michael Woodward and development director Robin Macdonald – with a golden handshake worth much less than the £1.75million originally proposed for the three.
‘The terms and conditions that apply
to Mr Martin are no different to any member of staff at Touchstone'
A corporation source revealed there was ‘some unhappiness' over the undisclosed arrangements involving Mr Martin, who has been with the organisation for 25 years. But unlike Liver, Mr Martin's package is contractual, meaning the corporation is powerless to act.
His departure follows Touchstone, founder member of the Keynote Group, joining with Midland Area Housing Association to create one of the largest RSLs in the Midlands. Tom Murtha, Midland Area chief executive, has been appointed chief executive designate of the Keynote Group.
A spokesperson for Touchstone said: ‘The terms and conditions that apply to Mr Martin are no different to any member of staff at Touchstone.'
The corporation confirmed this week that the new payments at Liver will follow the formula set out in its inquiry, which revealed Ms Price-Taylor had been lined up for a £873,000 golden handshake in the event of a merger. The report said even a total package worth £661,796, with Ms Price-Taylor receiving £257,476, would be ‘at the limit.'
John Smith, of solicitors Thos R Jones and Son, who represented the Liver board, confirmed the new board would include some members found to have mismanaged the proposed payments. That is despite the corporation's claim that it was originally minded to dismiss five of the six criticised.
Grosvenor chief executive Graham Eades will become chief executive of the merged association, which is to be called Arena.
The new board will be chaired by Malcolm Haigh, the present chair of Grosvenor. Deputy chair will be Mike Hill, current chair of Liver.
The merger will lead to ‘a small number' of redundancies but a spokesperson for the new association said it was likely new jobs would be created in the future.
See also
Liver's merger plans get green light
Riverside sinks Liver's transfer hopes
Tenants' fury over chopped Liver
Liver inquiry finds mismanagement
>Troubled Liver misses out on £300m transfer
LINK
Click here to see the Housing Corporation's documents library, containing the findings of the Liver enquiry
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