A recent Chartered Institute of Personnel Development survey found that median pay for bosses of the UK’s biggest companies hit almost £4m last year – up from about £3.5m in 2016. https://www.bbc.co.uk/news/business-45183881
That set me thinking about the work the DfE undertook earlier this year in relation to the pay of CEOs of Multi Academy Trusts and whether or not the findings had been published anywhere?
Readers will recall that Eileen Milner, the chief executive of the Education and Skills Funding Agency, wrote in February to the chairs of 87 MATs employing individuals earning more than £150,000, asking them to explain their rationale for doing so by early March and to justify paying these salaries.
The intervention comes two days after the Department for Education minister, Lord Agnew, said that no MAT boss should receive a larger pay increase than their teaching staff and that CEOs should have their pay cut if there is a downturn in the performance of their schools. It follows a similar letter sent in December 2016 to single-academy trusts paying leaders more than £150,000. Lord Agnew’s February letter can be accessed at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/683075/Lord_Theodore_Agnew_letter_to_chairs_of_academy_trusts.pdf
Further letters appear to have been written to some MATs in April and July seeking more information. These can be found at https://www.gov.uk/government/publications/letters-to-academy-trusts-about-levels-of-executive-pay 28 letters were sent in December 2017; 88 in February 2018 and a further 96 letters in either April or July 2018. With a final return date of 20th July, the EFSC should now have sufficient information to publish a report on the state of the most highly paid staff in the public education service.
There may be an issue relating to pensions should those not undertaking any teaching or direct site leadership of a school remain in the Teachers’ Pension Scheme. In the past, when becoming local authority staff most would have moved out of the TPS into the relevant LGPS for their authority. I don’t’ know how LGPS scheme managers and trustees, of which I am one for Oxfordshire’s scheme, would approach the arrival of such highly paid staff so near pensionable age, but the DfE does need to make clear the boundary for who can belong to the Teachers’ Pension Scheme even if they aren’t actually in a school?
The level of salaries paid to senior staff in the school system is clearly a matter that won’t go away. After all, perhaps 100 MATs paying more than most local authorities pay their Director of Children’s Services must be of concern in term of expenditure, especially once pension and other on-costs are added to the basic salary.
The problem really dates back to the Labour government and the development of Executive Headteacher roles without the government making it clear how such professionals should be paid. However, the seeds of that confusion date even further back into the early 1990s and the refusal to police the upper end of the Leadership Pay Scale for large schools facing recruitment difficulties. Failure to deal with a problem doesn’t always make it go away; sometimes it allows it to grow into a serious issue that is much harder to tackle as is now the case with the pay of CEOs of MATs.