When we put money in a box for a good cause, how much goes on CEO pay? Probably less than 1%
In a recent Daily Mail article, Conservative MP David Davies was quoting as saying:
"It is extraordinary that charitable organisations and charity bosses are giving themselves bigger pay rises than some people receive in their annual salary.
'When we put money in a box for a good cause, it is without realising how much of the money is being used to fund the enormous, eye-watering pay rises for bosses of these organisations.'"
If David Davies doesn't realise how much is going on pay rises for CEOs, let's help with that.
- In a review we did several years ago, we found that for the largest 10 charities in the UK, CEO pay was 0.05% of the total income
- The largest charities receive a very large proportion of the income going to the charity sector, so there's a good chance that the amount of total income spent on CEO pay is very low.
- Where the percentage spent on CEO pay is high, it's likely to be in a smaller charity, so the CEO is likely to be earning less than the £60,000 threshold