A INTRODUCTION
What is the Scottish Government Public Sector Pay Policy for Senior Appointments?
1. The Public Sector Pay Policy for Senior Appointments sets the parameters for the remuneration of senior appointments to a wide range of Scottish public bodies. The policy extends to proposals for annual increases, as well as remuneration proposals for new appointments, reviews or any other change in the remuneration arrangement.
2. This document sets out Scottish Government policy on levels of remuneration for senior appointments and the evidence and supporting information on which proposals should be based. Chapters C to E set out the requirements for the remuneration of Chief Executives. Chapters F to H set out the requirements for the daily fees paid to Chairs and Members. This policy document will be of most interest to Scottish public bodies and Scottish Government sponsor teams.
3. A glossary of terms used in this policy can be found in Chapter I. All words in blue are explained in the Glossary. You may find a printed version of this document more easy to use if printed in colour.
Who is covered by the policy?
4. The policy covers the remuneration (salary, bonus and other non-salary rewards) of Chief Executives and, in exceptional circumstances, certain Directors; and the remuneration (daily fee rates and any pension arrangements) of Chairs and Members of Scottish public bodies. It is relevant to all public appointments to NDPBs and public corporations. The policy also covers Non-Executive Directors of the Scottish Government and its Agencies; Chairs and Board Members of NHS Bodies; the fees paid to Judicial appointments and appointments to Tribunals, Appeals Boards, Royal Commissions, Advisory Committees and Inquiries, etc.
Who is not covered?
5. The pay of staff below Chief Executive level in the Scottish Government, its Associated Departments, public corporations and NDPBs is expected to be covered by the staff pay remit, which is subject to the policy for public sector pay for staff in public bodies 1 and is published annually. The pay of the Senior Civil Service ( SCS) is determined by the UK Government. The pay for senior officers in the police and fire services in Scotland is determined through other arrangements. The pay of Scottish local government employees is a matter for local authorities.
When is approval required?
6. Approval by the Scottish Government is required in relation to any aspect of the remuneration of senior appointments. There can be no introduction of, or change to, the remuneration of Chief Executives, Chairs or Members until appropriate Scottish Government approval to proposals has been obtained.
Who is involved in the process?
7. The roles of the various parties involved in the Public Sector Pay Policy for Senior Appointments process are as follows:
Chair / Board (of public body)
- Makes proposals in line with the Public Sector Pay Policy for Senior Appointments 2008-09:
- on the annual increases to pay and bonus proposals for the Chief Executive; or
- on any new or revised remuneration package (salary, pay range, progression arrangements, bonus, non-salary rewards, etc.).
- Submits proposals to the Finance Pay Policy team for Scottish Government approval.
- The Chair provides a statement supporting any performance bonus for a Chief Executive (see Chapter D, paragraphs 12-13 for details).
Sponsor teams (Scottish Government)
- Ensure that the public body they sponsor is aware of Public Sector Pay Policy for Senior Appointments.
- Along with the Finance Pay Policy team, consider remuneration proposals from the Chair / Board for the Chief Executive.
- Make proposals to the Finance Pay Policy team on the daily fees (and annual uprates) payable to Chairs and Members of bodies they sponsor.
- Seek the views of the Scottish Government portfolio finance team on affordability and sustainability of all proposals.
- Draft submissions seeking approval for remuneration proposals, with contributions from the Finance Pay Policy team and the Scottish Government portfolio finance team.
Sponsor Directors (Scottish Government)
- Consider the Chair's statement on the Chief Executive's performance and, where this has been assessed as exceptional in terms of the outcomes achieved, considers the percentage bonus and how it has been determined (see Chapter D, paragraph 14).
- In conjunction with the Deputy Director of Finance Expenditure Policy, consider for approval remuneration proposals rated Green for Chief Executives, Chairs and Members.
- Make recommendations to the Scottish Government Remuneration Group on all other proposals.
Portfolio finance teams (Scottish Government)
- Consider and provide comments on the affordability and sustainability of remuneration proposals.
Finance Pay Policy team (Scottish Government)
- Provides advice to public bodies; sponsor teams; Scottish Government sponsor Directors; the Scottish Government Remuneration Group; and Cabinet Secretaries / Ministers on the Public Sector Pay Policy for Senior Appointments.
- Assesses proposals against the Public Sector Pay Policy for Senior Appointments; provides formal advice to the Deputy Director for Finance Expenditure Policy and the Scottish Government Remuneration Group.
Scottish Government Remuneration Group
- Considers and approves proposals on the remuneration of Chief Executives, Chairs and Members or refers proposals to Cabinet Secretaries / Ministers for approval.
Portfolio Cabinet Secretary / Minister and Cabinet Secretary for Finance and Sustainable Growth
- Jointly consider and approve remuneration proposals for Chief Executives, Chairs and Members where the Scottish Government Remuneration Group considers proposals should be referred to Ministers.
What do public bodies / sponsor teams need to provide?
8. For remuneration proposals to be considered -
8.1 For Chief Executives:
- A public body must provide the following:
- A completed Excel template setting out the pay and bonus proposals (and any other changes to the remuneration package) and confirmation of the increase and any bonus paid in the previous year ( outturn);
- A statement from the Chair (as set out in Chapter D, paragraphs 12-13); and
- Where proposals follow a review or relate to the appointment of a new Chief Executive, an evidence-focused business case that supports the proposals.
8.2 For Chairs and Members:
- A sponsor team must provide the following:
- A completed Excel template setting out the remuneration proposals (and any other changes to the remuneration package) and confirmation of the daily fees paid in the previous year (outturn); and
- Where proposals follow a review or relate to the appointment of a new Chair or Members, an evidence-focused business case that supports the proposals.
Who should you contact for help?
9. The role of the Finance Pay Policy team is to ensure that remuneration proposals are in line with the Public Sector Pay Policy for Senior Appointments 2008-09 as set out in this document. Before submitting any proposals, the Finance Pay Policy team can assist in making sure that the Excel spreadsheets and any supporting business case includes all of the necessary information. The Finance Pay Policy team will provide feedback on proposals when submitted for approval by the Scottish Government.
10. If you need assistance or have any questions, please contact the Finance Pay Policy team. The Finance Pay Policy team can be contacted as follows:
Nicola Paterson 0131 24 40804
Lesley Doherty 0131 24 47345
Geoff Owenson 0131 24 47346
Neil Ramage 0131 24 47052
Paul Cooper 0131 24 47341
David Anderson 0131 24 40716
General enquiries 0131 24 40716
Email: Finance Pay Policy mailbox ( financepaypolicy@scotland.gsi.gov.uk)
Finance Pay Policy
The Scottish Government
Area 3B
Victoria Quay
EDINBURGH
EH6 6QQ
11. This document will be available on the Publications section of the Scottish Government website: www.scotland.gov.uk/Publications/Recent
Where proposals should be sent?
12. When you are ready to submit proposals for approval you must send them, including completed Excel templates and, where appropriate, the Chair's statement and any supporting business case, direct to the Finance Pay Policy team at: financepaypolicy@scotland.gsi.gov.uk
13. The relevant Scottish Government sponsor team should be copied into this correspondence.
When should proposals be submitted for approval?
14. You must submit proposals for annual increases and bonus for Chief Executives and annual increases to the daily fee for Chairs and Members in line with the timetable in Annex A. Other changes to the remuneration arrangements for Chief Executives or changes to the daily fee arrangements for Chairs and Members should be submitted when necessary. Sufficient time for approval should be allowed.