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Not All Charity Bosses Are Fat Cats

Croner Survey highlights massive pay difference between private and charity sector CEO's

​Despite recent news reports, typical pay for chief executives in the charity sector is actually as much as 18% below other sectors nationally, and up to 22% below in London, reports Croner, the UK HR experts ( www.cronersolutions.co.uk), part of global information service company, Wolters Kluwer.

According to its Croner Reward 2012-13 Charity Rewards report1, the largest pay and benefits survey of charity organizations in the UK, the average pay for chief executives in charities is currently £75,617. Only a small minority are earning over the PM's £142,500, as reported yesterday.

Viv Copeland, Head of Reward at Croner, says: "I can understand why chief executive pay is perceived to be a problem for the donating public. However in reality most charity chiefs are earning much less than their private sector counterparts.

"A key issue for the charity sector has always been the culture of transparency and justification of pay levels because of the nature of their income and resources.

"But charities are complex organizations these days and they have to pay a fair salary if they are going to attract the right talent to do a professional job for the charity.

"However, with the economic climate as it is, a charity has to make sure its remuneration package is competitive yet at the same time not excessive."

Comparison of pay in charities and the commercial sector

Notes

  National Greater London
Rank and Responsibility Level Charity Pay All Sector Pay Comparison % Charity Pay All Sector Pay

Comparison
%

Chief Executive

75617

92700

-18.4

86114

103824

-17.1

0 Other Directors

65459

77932

-16.0

68186

87284

-21.9

1 Head of Function

50282

58604

-14.2

52000

62426

-16.7

2 Senior Manager

41300

46361

-10.9

42748

48470

-11.7

3 Middle Manager

35171

37538

-6.3

36756

38676

-5.0

4 Junior Manager

29070

30695

-5.3

30846

31303

-1.5

5 Trainee Manager / Supervisor

25029

25500

-1.8

26295

25750

-2.1

 

Extract from Croner Reward 2012-13

Charity Rewards showing comparisons of pay in Charities vs Commercial Sector.

Median chief executive pay by size of organization (income/turnover)

Size Charity Commercial Sector
Up to £1m 52859 76875*
£1m to £2m 60701 62250
£2m to £5m 70341 72757
£5m to £10m 73491 78863
£10m to £20m 92504 99025
£20m to £40m 100881 121756
£40m to £75m 111671 128633
Over £75m 133287 145912

 

Median chief executive pay by size of organization (number of employees)

Size Charity (£pa) Commercial Sector (£pa)
Up to 19 63919 75237*
20 to 49 66470 65372
50 to 99 73584 91095
100 to 199 76142 103584
200 to 499 92138 130077
500 to 999 100893 170000
1000 and over 121208 128000

* there can be an anomaly here due to influence of small, high-paying hi-tech companies in this space.

Croner, a Wolters Kluwer business, is the UK’s largest provider of employment, HR and health and safety information and services. It has served HR, health & safety and business professionals since 1948 with market-leading products and services.

Follow Croner and Wolters Kluwer UK on Twitter: @CronerVoice @WoltersKluwerUK