London, 7 October 2021 – The Chartered Governance Institute UK & Ireland has today published new guidance for the remuneration committees of charities registered in England and Wales. The guidance will be useful to any charities seeking to strengthen their governance arrangements in line with key aspects of the Charities Statement of Recommended Practice and the Charity Governance Code.
Louise Thomson, Head of Policy (Not for Profit) at the Institute says:
“The issue of executive pay in the charity sector and other parts of the economy is a perennial issue and one that attracts the attention of the media and sector commentators alike. This is particularly true now given the detrimental financial impact of the COVID-19 pandemic on society. While there has always been the expectation that charities should be transparent about how they spend their resources, the requirement for decisions about levels of executive pay to follow a robust evidence-based process and be reasonable and defensible has never been higher.
“It is worrying, therefore, that a recent survey by ACEVO found that 49% of charity leaders reported having no formal salary review on a regular basis. Remuneration committees have a critical role to play in balancing the interests of donors and other stakeholders with the need to attract senior leaders who will be effective in using a charity’s resources to deliver the charity’s stated purposes to those communities it is set up to serve. These model terms of reference will allow remuneration committees to provide the evidence necessary to allow trustees to make informed decisions about the pay and benefits for senior staff, thereby helping them to attract and retain appropriately-qualified staff.”
The model terms of reference offer guidance about the following:
- Membership
- Secretary
- Quorum
- Frequency of meetings
- Notice of meetings
- Minutes of meetings
- Engagement with members and other stakeholders
- Duties of the committees
- Reporting responsibilities
- Other matters
- Authority
- Review.
The guidance can be downloaded for free at www.cgi.org.uk/charityremcom
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For further information, please contact Maria Brookes, Media Relations Manager:
mbrookes@cgi.org.uk
+44 (0)20 7612 7072
+44 (0)7890 649 143
Notes to Editors:
- The Chartered Governance Institute UK & Ireland is the professional body for governance and the qualifying and membership body for governance professionals across all sectors. Its purpose under Royal Charter is to lead ‘effective governance and efficient administration of commerce, industry and public affairs’ working with regulators and policy makers to champion high standards of governance and providing qualifications, training and guidance. As a lifelong learning partner, the Institute helps governance professionals to achieve their professional goals, providing recognition, community and the voice of its membership.
One of nine divisions of the global Chartered Governance Institute, which was established 130 years ago, The Chartered Governance Institute UK & Ireland represents members working and studying in the UK and Ireland and in many other countries and regions including the Caribbean, parts of Africa and the Middle East.
Website: www.cgi.org.uk
