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Chiefs rail against proposed pay cap

  • 4 Comments

One in 12 local authority chief executives is considering taking a pay cut as an example of restraint in the face of pressure on public sector finances, an exclusive LGC survey suggests.

But respondents also indicated that imposed salary caps would make chiefs reticent about taking on new challenges and more likely to retire or leave the sector, suggesting ministers should think twice before imposing such measures.

For example, eight per cent of the 49 chief executives who responded to the survey said they had thought about following the example of Devon CC chief executive Phil Norrey, who announced his decision last month to take a 5% cut on his £157,000 salary to “demonstrate restraint”.

Meanwhile, 49% of chief executives said they expected to change jobs within the next two years and many indicated that moves to cap or reduce their pay after the upcoming general election could lead to them leaving local government altogether.

Twenty-seven per cent of chief executives said they would consider retiring early if pay levels were capped or reduced, while 24% said they would be more likely to look for a job outside of local government, with other jobs in the public sector and consultancy work being top choices.

In contrast, 16% said they would be more likely to stay in their job longer than they had planned if new restrictions on senior officer pay were introduced.

Restraint

David Clark, director general of the Society of Local Authority Chief Executives & Senior Managers said there was a recognition in the sector that restraint on pay was in order, but that decisions were a matter for councils.

“There are a large number of people who feel that a freeze may be the right thing to do, but the people best placed to make that decision are in councils,” he said.

He added that national politicians seemed to want councils to take responsibility for difficult decisions about local cost-cutting, but take the credit for restrictions on senior officer pay.

Jobs in the wider public sector (37%) were the top choice for chief executives who thought restriction on their current earnings could prompt a move away from local government and 27% believed some form of consultancy work would be a suitable alternative.

One newly-appointed chief executive warned that constant media-bashing would have a detrimental effect.

Cynicism

“In the longer term the lack of recognition and cynicism about what we actually do as public sector managers may make me think about whether the job is worth the constant criticism - this is not about the money as such but about reputation of the role,” the respondent said.

Another added: “The failure to pay reasonable levels of remuneration to senior managers during times when pressures on them are going to increase will have a negative impact on those aspiring to the top. This in turn will reduce the number of able candidates for senior jobs.”

Of the 112 who responded to the survey, including senior officers, 74% said they believed chiefs’ pay was about right. That figure rose to 76% when answered by chief executives alone.

Eighty-six per cent of chiefs said they felt “fairly remunerated”, contrasting with 74% of the wider set.

  • 4 Comments

Readers' comments (4)

  • These people are overpaid and under worked and have no responsibility whatever and should have massive pay cuts, as for the claims they will leave and get jobs in the private sector, goodbye and good luck. You will not be missed.
    Anyone could do the job, if you make a decision and it is the wrong decision nothing happens to you, if you fail to make a decision and it is the wrong decision nothing happens to you. Its money for nothing, no worries no responsibility.

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  • Thanks for the well-informed, rationally argued comment, Eddie. I take it you are a local authority CX to know so much about it. If you aren't, why not? Looks like a splendid job. I must get on the bandwagon myself, despite my 37 years in local government leading me to believe I simply didn't have the required skills or the ability to live with the stress. How wrong I was!

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  • Stress ? What stress would that be John ? front line delivery day after day ? Dealing with the recipients of our services in the streets ( and not just once a year to show they know where the Library is ) ?
    We need a new approach to the role, based on accountability and professionalism, a willingness to take responsibility for the bad news and not just the spin......

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  • David Merson

    Leaving aside the hyperbole and sarcasm, the reality of the position is that pay restraint and cuts in real terms are going to be the order of the day in the new financial reality. The sooner that those in their ivory towers realise it the better for all in the public sector.

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