Sunday, August 10, 2008

Anchor Trust pays CEO £327,000- 32% increase

(The first of two things taken from “Inside housing” email bulletins).

£327,000 per year - what on earth is going on here? No wonder the sector has such a bad reputation for this sort of thing. Anchor is supposed to be a “not for profit” organisation, it employs 10,000 workers and has 50,000 clients.

What is the average salary of a worker compared to the CEO?

In the words of the former head of M&S, Paul Myner, do we have the same problem in the social housing sector with “the self appointed managerial elite are raping the resources of companies”. So called “independent” external advisers on executive pay are called “Ratchet, Ratchet and Ratchet”.

It just makes you despair. It is also a pity we have a new housing minister or I would have reminded her about this pledge.

The chief executive of one of the UK’s largest housing associations raked in nearly a third of a million pounds last year following a huge pay hike.

John Belcher of Anchor Trust was paid £327,000 – up 32 per cent on the previous year. He is the first housing association boss to pocket more than £300,000 on salary and bonus alone.
Mr Belcher’s salary has more than doubled in seven years, from a more modest £162,000 in Inside Housing’s 2001 salary survey.

Last year’s pay packet included a car allowance of £15,000 and a massive £72,000 bonus.
Including £32,880 in pension contributions and £1,000 in medical insurance, his entire package is worth £360,880.

In 2005 Places for People boss David Cowans picked up £314,000, but this was partly due to an historic pensions underpayment.

Clare Miller, director of regulation at the Housing Corporation, said salary increases ‘should be proportionate and linked to organisational performance’.

Ms Miller, who received a 15 per cent salary increase herself in 2007/08, added that salary rates were a decision for each housing association. ‘We accept that leaders of large organisations need to be remunerated appropriately to reflect the nature of the challenges they face and their success in meeting these challenges,’ she said.

Michael Gelling, chair of Tenants’ and Residents’ Organisations of England, said Mr Belcher’s wage was ‘unjustifiable’. ‘The people they are serving are on the breadline – how can you justify being paid that much?’ he asked.

Anchor Trust said Mr Belcher’s compensation was high because half the association’s work was in care services instead of housing provision, a sector where the main competitors are private sector companies such as BUPA.


Robert said...

Well why not everyone else is jumping on the gravy train. this government will make him an MBE or what ever, for his ability to make money.

Anonymous said...

He probably worked hard for it...good luck to him! Try not to be so might be happy. Try concentrating on your work instead of bitching about everyone else? You are a right moaner.

Anonymous said...

He probably paid 150K in tax that keeps you and your mates in employment..maybe he donated the other half to do you know whether he's worth it or not? He probably works harder than Kirsty Wark, David Beckham, Jonathon Ross etc and I bet he didn't get the taxpayer to put a Pagoda in his Garden or pay for his groceries. Its because he's a "boss" that you can't stand it...if he was a brain surgeon working with children you would say he deserved it? This is a lot less than Lord Levi or Tony Blair gets now? How much did Prescott get for his useless autobigraphy or Cherie Blair earn ligging holidays from stars and making speeches. She got at least this much a year as a lawyer? Whats your problem?

John Gray said...

Hi Robert
That is your view, but I think it is not actually true. In this country we may well have incompetent government from time to time (not the current regime of course) but they are not corrupt.

Anonymous said...

how come not one director or CEO in any major bank has not
1) lost their job
2) lost their bonus


its great if your rich

Anonymous said...

I guess no head of a bank has gone for the same raeson not one Labour Government Minister has resigned over the invasion of Iraq, the dodgy dossier, the hounding and death of a civil servant. Its great having a socilaist Governemnt - such high standards to aspire too

Anonymous said...

He needs all this cash to pay for the 4.4% increase in inflation that the Iron Chancellor, Mr Bean, and his cabinet of serial under achievers has forced on us. This chap will get an even bigger bonus next year because his housing is going to be in very high demand now the economy has been ruined.

Anonymous said...

Brown let the money supply race out of control over the last five years and he has directly contributed to high inflation - the price of oil has dropped $30 a barrel but now the economy is under performing and so the pound drops sharply against the dollar - so we won't now get the benefit of this. We are facing a rise in interest rates as a result. Wages and pensions in the public sector are linked to inflation so he won't be able to keep many wages down. Well done Iron Chancellor - its only borrowing that is keeping a semblence of order now.

Anonymous said...

We need to pay a few more hardworking CEO's more...on the one hand you complain British management is shite and when you get someone who actually deserves the rise you tear it apart?

Anonymous said...

My bonus was only 36K last year...and I'm sure I worked a lot harder than this chap! Can Unison help me?

John Gray said...

Hi Anons
Apologies for not responding sooner. I must admit that I am surprised that right wing Anons aren’t actually horrified by this salary excess.

Is this really the sort of society you want to live in? Where there is a small number of the super, super wealthy and millions of people on minimum wage?

Where the super rich pay even less in taxes than even their cleaners?
So despite Cameron One Nation Conservatism is obviously dead and buried.

Anonymous said...

Ask Blair...he's one of the super rich you abhor.

John Gray said...

now, now Anon - you know I don't abhor anyone (except GG of course)