Public sector pay: Chief Executive framework review

Pay Progression increases

40. The existing CE Framework caps progression for CEs at a maximum of 1.5% per year. The CE Framework does not dictate any progression limits for staff, including senior staff. As an example, the average progression increase for staff in Scottish Government is around 4%. Under the UK Guidance, SCS members do not have access to progression and are paid the rate for the job from the start.

41. Pay ranges for staff pay, including senior staff, have set journey times and progression steps ensuring they reach the maximum of the pay range within a specified time period. This is not the case with all CEs and some who have been in post for many years are still not at the maximum of their pay range.

42. Stakeholders were concerned that in combination with the 10% reduction, the 1.5% cap on progression meant that a new CEO would likely never reach the same salary level as their predecessor, despite in many cases job complexities and demands increasing rather than reducing.

43. This is an area where pay restraint for CEs could continue, albeit in a more considered way.

Recommendation 4: That the cap on pay progression for CEs is continued but increased from a maximum of 1.5% to at a maximum of 2.5%.