Chief Executive salary clarification

By on 25/02/2011 in News, Rebuttals

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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There Are 4 Brilliant Comments

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  1. Public Worker says:

    About time this ridiculous ‘earns more than the PM and so ought to be hanged’ is challenged. The PM has a country home, gets driven everywhere, travels first class and gets five star hotels, book deals, and luxury wherever he goes…. all paid for by the tax payer. He is currently making chief execs’ jobs impossible by cutting the money needed to deliver public services to the tax payers.

    If you want to feel annoyed watch the news for Lloyds TSB chief execs bonus today. Council chief execs suddenly look a bargain now don’t they?

  2. D Hardman says:

    The city council should be ashamed of itself, cutting the pay of its low paid workers whilst paying out such high salaries to these senior managers. The chief executive and the others should be setting an example to the workforce as a whole and taking a pay cut. The chief executive is not worth the absurdly high salary and bonuses he receives, and he is deluding himself if he believes this. He certainly wont convince the taxpayers of the city with such an irrational justification, and to compare his situation with the private sector is patently absurd- he will receive a very generous pension and there is no information on his bonuses which he will receive.

  3. Kim Grogan says:

    Mr Hughes, no-one in any local authority is worth £180,000+, especially an authority that is so badly managed by its executive team. Comparing yourself with the CEO of a FTSE100 company just holds no water. If you were running such a company, you would be bankrupt and fired for incompetence.