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Loretta Minghella’s salary 2012/13

A national newspaper has drawn attention to the salaries of the CEOs of a number of major British charities. Christian Aid was one of those named.

We issued the following statement to the newspaper in question on 5 August, updating the text today to add further information and to correct a minor error in the salary amount (shown incorrectly as £126,072) and past job titles. A separate note for Christian Aid supporters is available.

In 2012-13, the salary of Christian Aid Chief Executive Loretta Minghella OBE was £126,206. This will also be her salary in 2013-14.

People are employed at Christian Aid on the basis of the specific skills that they bring to their particular role. For an organisation like ours to run successfully, staff must reflect a large variety of abilities and disciplines.

The demands are myriad. They include:

• Managing our overseas programmes and ensuring funds are applied and monitored in ways that maximise their benefit to poor communities
• Campaigning and advocating for government and other decision makers to change the systems that keep people poor
• Promoting the issues of poverty and development in the media
• Raising funds that support our work
• And, of course, overseeing the entire operation.

All of this work requires specific areas of expertise which are difficult to attract in a highly competitive market.

Nonetheless, Christian Aid is mindful of not paying higher salaries than are necessary and/or reasonable.

The board of trustees has a strict policy that requires us to set salaries at or below the median of other church based and/or international development agencies.

Our director, who was previously employed as Chief Executive of the Financial Services Compensation Scheme, brings substantial experience and skills in managing a large and complex operation to Christian Aid, strengths which are reflected in her salary that is on a level comparable with that of others of like position in the sector.

In a recent survey of the UK’s top charities by income (in which Christian Aid was the 59th largest), mean average pay across the top 100 for heads of those organisations was £208,000 to £216,000.

During 2012/13, Christian Aid also paid salaries of between £80,000 - £89,999 to four of its senior staff, salaries between £70,000 - £79,999 to one of its senior staff and salaries of between £60,000 - £69,999 to seven other staff members.

The salaries of Christian Aid staff are periodically benchmarked against comparable organisations including other charities and church organisations, with the support of an external consultant. Christian Aid aims to set salaries equivalent to the median for such organisations.

During 2012/13 the Board approved a revised set of pay principles including adoption of the Hutton Fair Pay Review (March 2011) recommendation on executive pay; the salary of the highest paid employee is no more than four times the median salary of the organisation. The change was introduced to allow Christian Aid to offer, at the lower end of the pay scale, an increased number of traineeships. This has brought greater diversification of the workforce. The new calculation did not result in changes to remuneration for senior staff or the CEO. 
 
On an annual basis staff salary scales are increased in line with average weekly earnings and the consumer price index, subject to affordability. Furthermore, all posts in the organisation are evaluated based on agreed, organisation-wide criteria that determine the grade and salary for the post.

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