The Learning and Skills Councils Annual Report and Accounts for ...

Components of
remuneration
The Chairman of the LSC (who
has also chaired the Remuneration
Committee) and members of the LSC
National Council received a salary
(Chairman) or an honorarium. There
has been no bonus payment attached
to any of these appointments.
The Chief Executive and members of
the Management Group (the national
and the regional directors) have
received a total reward package made
up of base salary, annual bonus, flexible
benefits and a defined benefit pension.
Subject to the requirements of the
role, there may have been a job-need
car (or, from September 2006 until
31 March 2010, a job-need taxable
but non-pensionable car allowance)
provided by the LSC. Bonus payments
were not guaranteed.
From April 2006 until March 2010,
the LSC bonus plan was structured to
focus on encouraging and rewarding
team-based achievement at both the
national and regional level, as assessed
against the Public Service Agreement
targets set by the former Department
for Education and Skills. For senior
staff, a discretionary element
recognised outstanding individual
contributions.
Relationship
between base
salary and
variable reward
General
The LSC set base salaries at the market
median and recognised achievement
through the bonus scheme.
Salaries for national, regional and
other senior directors have been
benchmarked using a range of
appropriate data sources including
the Association of Colleges’ Principal
Salary survey, Hay Group management
consultants and Senior Civil Service
pay scales. If an individual’s salary
fell below 90 per cent of the pay
benchmark, an adjustment should
normally have been made to bring it
to that minimum level.
Chief Executive
The reward package for the Chief
Executive involved two key elements
(base salary and bonus), determined by
the Secretary of State after considering
proposals from the Chairman.
The bonus has been assessed on
achievement against corporate and
personal targets. During 2009–10
the Chief Executive, Geoffrey Russell,
received no pay increase.
Due to the nature of his role, the
Chief Executive has not received an
automatic salary progression award.
Base pay changes
2009–10
Base pay for national and regional
directors rose by an average of
3.13 per cent. This included an amount
set aside for raising the spot rates
(the normal salary value) for each role
by 2.00 per cent. The remainder was
used to move employees from the
90 per cent minimum towards that
spot rate. The average increase for
other senior directors was 2.91 per
cent (including an increase in spot
rates of 2.00 per cent).
Duration of
contracts,
notice periods
and termination
arrangements
Members of the
National Council
Members of the National Council were
appointed by the Secretary of State for
Business, Innovation and Skills, but did
not have service contracts.
Appointment was for a fixed term,
usually four years, and on a parttime
basis. Over the course of a year,
members of the National Council have
been expected to devote 12–15 days
to work for the LSC, mainly in either
half- or part-days.
22 LSC Annual Report and Accounts 2009–10