Monday, 2 May 2016

CaRT in 7th Place

How much do the top UK charities by income pay their senior staff and can the higher salaries be justified to an increasingly sceptical public? 

After the collapse of Kids Company sent a shiver through politicians and public to discover the levels of salaries of CEO and directors of charities. The pay of senior charity staff in the third sector has been under increasing scrutiny. In particular the demand for clarity has come from some politicians and is being questioned more and more by sections of the media. 

The Charity Commission, has said that disproportionate salaries could be bringing some charities into disrepute. This comes on the back of a report by the National Council for Voluntary Organisations which has urged charities to be more open about pay levels and how they are set. 

The better the charity is known (household name) then the charities tend to pay their highest-paid executives the least. Because they are instantly recognised as charities, with higher public fundraising profiles. However, for some of the least recognisable charities its the other way round. 

It is pointless just comparing what the individual CEO earns. Without also understanding that there will be other senior managers on significant salaries as well. To make a comparison you need a common denominator to directly compare charities like for like. The best way to do this is on their operating income.

So where does the Canal and River Trust and its CEO/Directors/Senior Managers sit in the Charitable League Tables. The Trust Income is given as £165,000,000

With 1 CEO @ £200,000 with an additional 65 Directors/Senior Managers @ £60,000 or more. The minimum cost is £4.2 million pounds per annum. (Pensions contributions and bonus payments are not included) The Trust Income from boats and moorings is £33,800,000. Now to put that in a boating context. If the average boat licence is around £500 a year. That's a minimum of 8,200 narrowboat licence fees to pay the senior staff.

Are we getting value for money?
 
CaRT is currently in 7th place for high pay in the top 100 charities.

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