Academic journal article Manager

Performance Related Pay for Senior Management Made Public

Academic journal article Manager

Performance Related Pay for Senior Management Made Public

Article excerpt

Public sector managers, including council executives, NHS chiefs and senior civil servants, will face a new pay regime that will relate pay with performance, as the Government accepts recommendations made by Lord Hutton in his independent review into fair pay in the public sector.

In his review, Hutton proposes a new settlement for public sector leadership. Under this deal, senior public servants' pay will be directly linked to their performance, details of which can be made available to the public. Hutton asserts that, in return, public sector senior managers should expect improved public appreciation of their responsibilities.

The report, aiming to promote pay fairness in the public sector by tackling disparities between the lowest and the highest paid in public sector organisations, also tells ministers to force private companies to disclose more information about their chief executives' wages. Brendan Barber, General Secretary of the TUC, said:

"This review makes a range of challenging proposals for change in the public sector, including greater pay transparency at the top. But crucially it is also a welcome starting point to tackle the greatest unfairness - boardroom excess in the private sector. …

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