Chief Executive salary clarification

Following recent media reports on the salaries earned by senior officers at Birmingham City Council, it is important to note that the Chief Executive’s salary is in the £180,00 to £184,999 band.

The widely reported figure of £233,000 is only when the performance-related element of his package and his pension contributions are added to the base salary.

Despite this, he, nor any other officer of the city council earns more than the Prime Minister (Source: ALACE report), when his total remuneration package is considered in comparision.

Stephen Hughes, Chief Executive of Birmingham City Council, said: “My role is the most senior for an officer within the local authority, which has an annual turnover of £3.5billion, employing more than 50,000 people.

“This makes the council comparable with many FTSE100 companies, most of which employ CEOs on a much higher salary, which often come with generous pension payments, share options and other benefits.

“When compared to other prominent figures within Government, my annual package is worth considerably less than that of the oft-quoted benchmark of the Prime Minister, worth more than £580,000 when you take into consideration other elements such as use of official residences, car and driver and Parliamentary allowances.

“I’m currently leading the effort to meet the spending challenge that sees the city needing to save £212million in the 2011/12 financial year. This means my salary amounts to approximately 0.1 per cent of next year’s savings figure and that I cost each citizen just 20p per year.

“To ensure this spending challenge is met, the organisation needs to employ people that have the ability to steer the authority through these tough times – and the people with these skills in senior roles deserve to be paid accordingly.”

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