By Helen Mooney
10 May 2011
NHS top executive salaries rose by 4.5% last year despite government calls for senior public sector pay restraint.
Figures published today by Incomes Data Services show the basic salary for NHS non-medical chief executives rose by an average of 4.5% between 2009 and 2010, compared with the Department of Health’s management ‘pay guidance’ increase of 1.5%.
Average earnings of NHS trust chief executives in England reached £158,800 last year, with 12% of NHS non-medical chiefs earning more than £150,000 and 69% of NHS medical directors earning the same amount or more.
The annual NHS Boardroom Pay report also shows that the gap between the salaries of NHS chief executives in foundation and non-foundation trusts is continuing to widen. Median total earnings of chief executives in foundation trusts were £164,500 compared with £152,500 for those in non-foundation trust.
Steve Tatton, editor of the IDS Executive Compensation Review, said: ‘For those wanting to see NHS directors’ pay curbed, our latest pay findings may come as a disappointment.
‘The government has stressed the importance of senior staff in the public sector showing leadership in the exercise of pay restraint in the current economic climate.
‘With salary rises running at these levels, such restraint so far does not seem to have been a feature of boardroom pay deliberations, especially in foundation trusts.’
However, David Stout, NHS Confederation deputy chief executive, said that NHS organisations were ‘large and complex in nature’ and required the right managerial skills to be led effectively.
‘A large city hospital could have a budget of between £500m and £1bn and employ as many as 10,000 staff – comparable to many FTSE 250 companies.
‘Because of the challenging nature of a chief executive's role, NHS boards must consider a range of factors, including pay, to encourage the best candidates in to these positions.’
