The CIPD has come under heavy fire from the HR community – and its own employees – after its decision to award chief executive Jackie Orme a bonus.
Personnel Today exclusively revealed that Orme received a bonus despite other staff at the Chartered Institute of Personnel and Development suffering a pay freeze, discretionary bonuses and cuts to benefits. The move was branded “outrageous” by one CIPD insider
It is believed Orme received a bonus equating to about 20% of her annual salary – which is thought to be about £300,000. The CIPD could not confirm the figure. A spokesman said details of Orme’s remuneration would be published in the CIPD’s annual report, due out in November.
But angry HR professionals contacted Personnel Today to vent their fury. One disgruntled CIPD employee said: “I think this is outrageous and I am waiting eagerly to see how she justifies this. With that kind of bonus we could have all had our normal yearly bonus and she would still have about £30,000 left.”
It has also since emerged that benefits were stopped as part of a cost-cutting exercise. Another source said: “I don’t mind her getting this [bonus], but not while everyone else has to cut back on benefits such as the childcare vouchers.”
The CIPD declined to comment on that specific allegation.
HR reaction to Orme bonus
“For a professional body which states its mission is “to lead in the development and promotion of good practice in the field of the management and development of people” which, ironically, now encompasses advice on setting fair and transparent executive remuneration structures, how can the CIPD have got it so wrong?”
“What a superb display of how not to motivate your team through difficult times. This just sounds like another example of the committee-driven, theory-obsessed, ivory tower thinking that the CIPD is still known for in the business world.”
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