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Latest NewsBonusesPay & benefits

CIPD defends chief executive Jackie Orme’s pay

by John Eccleston 22 Nov 2010
by John Eccleston 22 Nov 2010

The CIPD has defended the remuneration package awarded to its chief executive Jackie Orme for 2009/10, following criticism of her increased bonus and overall size of the package.

Orme was the recipient of a significant increase in performance-related bonus in the year 2009/10, leading to questions as to what aspects of the institute’s performance triggered the increase.

The bonus increase, from £57,000 to £85,000, was published in the CIPD’s annual report and financial statements for the year ending 30 June 2010 and was greeted with criticism on the Donald Clark Plan B blog, with commenters questioning the justification for Orme’s remuneration package. The report also showed that Orme’s basic salary rose by 2.2%, from £270,000 to £276,000.

The total value of Orme’s package is detailed by the CIPD report as £399,000. This is more than three times the average total of chief executives in comparable positions at other charities with a £25 million-plus turnover. XpertHR’s voluntary sector salary survey for 2010/11 found an average package of slightly more than £121,000.

The increase in Orme’s bonus also comes despite criticism last year that she received a bonus at all, given the uncertain state of the economy, and pay and bonus freezes elsewhere.

The figures also revealed that Orme had received reduced pension contributions – down to £25,000 from £64,000 the previous year.

Responding to the criticism, a CIPD spokesman said: “There is an element of Jackie’s package which is performance-related, and which is linked to a scorecard of clear objectives. The main point is that against that scorecard, the institute has had a successful year.”

When asked about the specifics of the scorecard of objectives against which Orme had been measured in order to justify the performance-related bonus, the spokesman replied: “That level of detail is between the remuneration committee and Jackie Orme. You can see from the annual report that we have had a successful year.”

The spokesman also explained the reason behind Orme’s reduced pension contribution, saying: “It is simply an issue of pension accounting and the timings of payments into the defined-benefit scheme.”

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John Eccleston

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