Public sector pay: Chief Executive framework review
A review of the public sector pay policy Chief Executive framework, covering Chief Executive remuneration.
Chief Executive Framework Bands
44. The CE framework has four bands, which have minimum, maximum, and ceiling amounts, which are annually uplifted in line with the CE pay policy for that year. The job evaluation score of the CE determines which pay band applies to their pay range. Pay ranges are expected to be within the minimum and maximum of the pay band. In exceptional circumstances, and only where supported by a robust business case, a pay range may exceed the maximum and be no more than the ceiling.
| Pay Band | Minimum | Maximum | Ceiling |
|---|---|---|---|
| 3 | £113,621 | £153,684 | £224,550 |
| 2 | £94,266 | £132,872 | £177,098 |
| 1A | £78,137 | £112,152 | £142,134 |
| 1 | £67,550 | £101,654 | £130,531 |
45. The SCS framework also has four[1] pay bands of broadly similar values to the CE framework, though it only has a minimum and a maximum. Over recent years the UK Government have only uplifted the minimum values, causing a narrowing of the bands.
| Pay Band | Minimum | Maximum |
|---|---|---|
| 3 | £127,000 | £208,100 |
| 2 | £97,000 | £162,500 |
| 1A | £75,000 | £128,9001 |
| 1 | £75,000 | £117,800 |
46. There are a number of CEs whose salary or pay ranges are above the maximum of their pay band, and in some cases above the ceiling. Additionally, the senior staff salaries have greatly increased in the last two years in particular, and the maximum of these pay ranges is leapfrogging the lowest CE ranges. The table details the pay scales for C band staff within Scottish Government.
| Pay step | Max-3 | Max-2 | Max-1 | Max |
|---|---|---|---|---|
| C1 | £56,020 | £58,708 | £62,969 | £69,846 |
| C2 | £72,310 | £74,824 | £78,073 | £83,460 |
| C3 | £83,725 | £84,670 | £84,858 |
47. The top of C1 range is now above the minimum of CE Band 1, suggesting that the pay bands are starting to get stretched, the boundaries may no longer be fit for purpose, and harmonisation with the current CE landscape is needed.
48. Below is a proposal for new CE Framework pay bands which would continue to be uplifted in line with annual uplift amounts (2024-25 annual uplift is not included). This revised framework would bring the following changes;
- Reassign any CEs in pay band 1A to either pay band 1 or 2 in line with their job evaluation scores and current salaries, and remove pay band 1A.
- Sets the minimum of Band 1 at or around the maximum of the C2 senior staff pay range.
- Brings most CEs back under the maximum of their respective Bands.
- Continues to be broadly in line with the SCS framework.
| Pay Band | Minimum | Maximum | Ceiling |
|---|---|---|---|
| 3 | £130,000 | £180,000 | £240,000 |
| 2 | £100,000 | £140,000 | £170,000 |
| 1 | £85,000 | £115,000 | £140,000 |
49. The policy position on expectations around CE pay ranges being set below the maximum of the relevant Band would continue. These changes would not impact any current CE salary ranges. If changes to salary ranges were sought, they would progress through the defined approvals processes.
50. Stakeholders were concerned that the framework is in need of a reset, as its application over time, particularly in sectors with higher CE turnover has led to roles getting significantly out of kilter.
Recommendation 5: That the CE framework pay bands be refreshed as proposed to better reflect the current CE landscape, whilst still maintaining broad comparison with the SCS framework.
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