Limpopobongo it is a contentious issue but in my experience the pay of all execs is very closely correlated to the size/income of an organisation and is a fair market rate. I know people get frustrated at the thought of a charity chief exec earning maybe £120,000 when that’s so far above the average pay, but when you’re managing an organisation of £20m a year, thousands of staff and a high level of risk (as is the case in many charities working with children/vulnerable people) what do you think would be fair pay?
Take for example the biggest children’s charities, they’re running statutory services for local authorities, they’re running fostering services, sexual exploitation services... This highly complex and needs very careful management and a high level of skill and experience. If you’re the chief executive of an organisation like that employing thousands of people, you will have needed to built up a lot of experience to get to that point to get it right and best serve the charity’s service users.
We live in a society where the more rarified the skill set, the higher the pay, and the skill set required to run a major charity is certainly rare. We need the very best people for these jobs, and the pay should reflect the level of risk and responsibility. This is why when something goes reallt wrong at the bottom level (like Oxfam), it’s the charity bosses that lose their job, because the buck ends with them. If it goes wrong it can go really wrong, the best management will mean the best management of your money. This goes beyond the top bods, proper management and structures and HR processes are important the whole way through. Personally I want organisations I give my money to be really well run, this includes having the best people on the exec and non-exec teams.
But as I started with, the pay almost always tallies to the income of the charity. A charity bringing in £4m doesn’t pay the same as one bringing in £200m.