Chief Executive Framework Review Pay Implementation and Governance Team

Risks

65. The policy aim of pay restraint for the higher paid should continue to be upheld, and is still broadly supported by stakeholders, but the methods and extent of the restraint need addressing. The current high volumes of Remuneration Group and Ministerial submissions seeking reviews of CE salaries highlights that there is an active problem with the CE framework, and its interplay with senior staff pay, and comparison with SCS pay.

66. Continuation of the current level of pay restraint risks the ability of public bodies to attract talent into the public sector in Scotland. The current policies, particularly the requirement of a ten percent reduction on recruitment are at risk of deterring both internal and external candidates.

67. The overwhelming majority of both CEs and Chairs expressed their dissatisfaction with the current framework and associated levers of pay restraint. However, a removal of all pay restraint would not be in keeping with Ministers’ progressive approach to pay.