Housing chiefs pay soars with 8% increases

10 Feb 05
Appeals for housing associations to restrain top salaries appear to have fallen on deaf ears.

11 February 2005

Appeals for housing associations to restrain top salaries appear to have fallen on deaf ears.

The pay of housing association chief executives rose last year by 7.9% – more than double the inflation rate. Seventy-nine – equivalent to about 4% of chief executives – are now earning more than £100,000 per annum.

In England, the average chief executive's salary rose to £102,114. Lower pay in the rest of the UK meant that the national average was £94,490, according to a survey by Social Housing magazine.

The Housing Corporation warned registered social landlords last June that hefty pay rises risked bringing the sector into disrepute. This followed warnings by ministers against large compensation packages for departing bosses.

But the survey also shows that a record £2.5m was paid to retiring executives in the sector during 2003/04 – nearly 10% by the corporation itself.

Norman Perry, its former chief executive, received almost £143,000 when he left about a year ago, while John George, former director of finance, was paid £95,000.

Bob Dinwiddy, assistant chief executive at the Housing Corporation, said the survey showed the 'working through of contracts' but he stressed that the corporation could not 'micro-manage' the sector.

'There will frequently be good reasons for terminating a contract as part of a wider economy,' he said.

'When boards make initial appointments they should recognise [potential] outcomes and make sure they are appropriate and proportionate.'

According to the survey, the highest-paid RSL chief executive is John Belcher of Anchor Trust, who received £210,000 in 2003/04.

A National Housing Federation spokesman said RSL boards generally ensured that pay represented value for money.

'Housing associations are not working in a vacuum,' he added. 'They operate in a market place where these type of skills are in great demand.'

Last year's average rise of 7.9% for chief executives compares with a 6.5% increase the previous year.

According to the same survey, the average pay of RSL staff rose by 6.4% last year to £19,700.

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