Annual Report and Accounts 2020/21

Remuneration report

Chief Executive and other senior appointments

Throughout 2020/21 our senior management team remained unchanged, consisting of a team of three senior managers, led by the Chief Executive, and with a part time project manager focusing on specialist projects on aspects of scale fees and fee variations.

Remuneration policy for the Chief Executive and senior staff

For all senior staff, remuneration is set by the PSAA Board, in line with PSAA’s terms and conditions of employment.

Key terms of employment for the Chief Executive and other members of the management team are as follows:

  • pension arrangement: PSAA operates a defined contribution plan with the same level of benefit for all its members. The Chief Executive and all staff are eligible to join the scheme. PSAA’s contribution is 10% of salary for all staff.
  • other terms of employment: The Chief Executive and senior managers all have permanent employment contracts and are required to give between four to six months’ notice if they resign.
Remuneration over £50,000

The number of staff with remuneration over £50,000 is shown in the table below. The bands are based on salary, employer pension contributions and contractual payments and benefits in line with the contractual terms and conditions of employment.

Band £k Number of employees 2021 Number of employees 2020
65 – 70 1.0
70 – 75 2.0 1.0
90 – 95 1.0 1.0
100 – 105 1.0
105 – 110 2.0
120 – 125 1.0
135 – 140 1.0
Senior management remuneration

Remuneration details for the senior management team are shown in the table below. This includes salary, employer pension contributions and contractual allowances and benefits in line with the contractual terms and conditions of employment.

Description 2021 2020
Chief Executive £135,044* £123,344
Chief Finance Officer £105,853 £103,371
2 Other Senior Managers £98,165 to £105,050 £6,495 to £91,038

*reflects pay increase following annual performance review

Pay multiple

The relationship between the remuneration of the highest paid employee and the median remuneration of the organisation’s workforce is shown in the table below. Total remuneration includes salary, contractual payments and benefits. PSAA does not have performance-related pay. These figures do not include employer pension contributions.

Description – £’000 2021 2020
Band of highest paid – total remuneration 120k – 125k 110k – 115k
Median – total remuneration 65 62
Ratio 1.9 1.8
Remuneration policy for Directors

There have been no changes to Directors’ remuneration during the year.

None of the Directors serving between 1 April 2020 and 31 March 2021 received other benefits from PSAA, nor were they members of the pension scheme.

Director 2021 – £000 £2020 – £000
Stephen Freer 30 30
Clive Grace 8 8
Stephen Sellers 8 8
Keith House 8 3
Caroline Gardner (1) 0 0

(1) In 2020 Audit Scotland did not charge PSAA for Caroline Gardner’s services. In 2021 Caroline Gardner retired from Audit Scotland. From this date Caroline has been remunerated at the same rate as the other directors.

Directors are also reimbursed for expenses directly and necessarily incurred in the performance of their duties.

In addition, the independent audit committee members received remuneration. Kathryn Cearns received £667 for the period 1 April 2020 to 31 July 2020, and Marta Phillips received £1,398 for the period 20 July 2020 to 31 March 2021.

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