Charities lead the way in Cameron’s fair pay policy

Charities lead the way in Cameron’s fair pay policy

Charity Finance


Dear Colleague


A survey published today by Charity Finance shows that, on average, charities pay their top earners only four times more than their lowest-paid employees. For charities with annual income above £5m the ratio rises to 6:1, and for large charities over £50m the ratio is 10:1. Compare that with FTSE-100 companies, where the pay ratio is 232:1. At local councils, where the salaries of many chief executives outstrip that of the PM, the ratio is 15:1; for NHS trusts it’s 14:1 and 19:1 for leading universities.


The ratio between the top and lowest paid employee in an organisation can be a marker for where on the "moral compass" they sit and so how "fit" they might be to deliver the moral Big Society.


Andrew Hind, former chief executive of the Charity Commission, and editor of Charity Finance magazine, said:


"The Prime Minister’s Big Society cannot grow in an environment of unfairness and a widening rich/poor divide.


The results of the first ever Charity Pay Ratio Survey demonstrate just how capably most charities are dealing with the difficult challenge of paying salaries which are high enough to attract talented leaders at the top, while still maintaining a sense of equity and fairness amongst the workforce as a whole."