Typically CEO's of academy chain companies are paid £240,000 +. More than CEO of local authorities and certainly more than the prime minister. Directors of these academy chain companies are also able to be directors of other 'for profit' companies that supply their academies.
The money comes from the tax payer. Most academy chain companies charge management fees of 4-5% of total school budget. In a typical secondary school with a budget of 6million that is a considerable amount. These chain academy groups do not cover all the services that the LA or LEA covered so new academies have to purchase these services separately. Also chain academy groups expect their academies to purchase centralised services separately (admin including computer systems, software, online services for finance, IT, HR, performance management, behaviour management etc), these are all additional costs. Many of these services are private companies setup by the chain group.
Often as a result of these extra costs academies have to shed staff, usually experienced staff - to be replaced eventually by newly qualified. Many new academies have to shed staff on a yearly basis as the chain group company expands its empire.
I would suggest than parents should carefully check the facts before voting to accept an academy chain company to run their school. These companies often come with an arsenal of hot tips to achieve short term gains. Policy documentation to impress ofsted, advice on 'equivalent' GCSE's which give 2, 3 or 4 GCSE's to boost results in league tables, until parents realise that post 16+ institution won't accept them for decent courses.
Once absorbed by a chain group, there is no escape unless the chain academy group agrees - which is unlikely. Governance is totally controlled by the group, local governors are quickly shed and replaced by chain academy group appointees. Staff and governors are controlled by loyalty and confidentiality polices and agreements. Parents are not supported by governors, their job is to impart the corporate line and rubber stamp academy group policies and budgets.
Parents should check the facts themselves; ofsted reports, performance reports on member academies (www.education.gov.uk). Academy chain groups employ PR and press staff to spin information released to the press. They are corporate companies which are now getting larger than the local education authorities they replaced. The CEO's of the six largest groups appear to dictate policy to Michael Gove, The DFE appears to have lost control.
These chain groups now appear to have a general aim of 'all through education', which appears to mean that they hope to take over both the feeder primary schools and the post 16+ colleges. Presumably to get around the problem of their courses not being acceptable to current post 16 colleges. In some areas this will mean that children's education (4-18) will be totally in the hands of a private company.
These chain groups are businesses, they pay their staff well but so far they haven't delivered the performance they promised. For to long they have relied on tricks to boost league table results, unfortunately as can be seen with many of the first generation academies these results are faltering as academies are forced to provide higher standard courses. Remove the bling and the spin and they are found wanting. Most of the latest generation of 'converter' academies haven't fallen for the bling and spin of the chain group companies and are working as small groups, supporting each other without the costs of belonging to a chain company, with local governing boards they exist in the local community and appear more accountable.
Unfortunately these goliath groups appear to be more self serving than community serving, a good idea hijacked it seems.