Remuneration report

The Trust’s definition of senior managers is its voting directors and details of these persons, who have the authority or responsibility for directing or controlling the major activities of the Trust, are set out in this report. 

Remuneration for executive directors  

These individuals are employed on contracts of service and are substantive employees of the Trust. Their contracts are permanent which have termination of notice clauses by either party of three months (dependent upon individual’s contractual terms). There are no compensatory arrangements for senior managers in the event of their termination by the Trust other than those specified within the Agenda for Change national terms and conditions. The Trust’s normal disciplinary policy applies to senior managers, including the sanction of summary dismissal for gross misconduct. The pay costs incurred on members of the Trust Board is included in the single total figure table in the Annual Accounts.

The levels of remuneration for executive directors and non-executive directors were established in line with national salary surveys obtained from the then Foundation Trust Network and Capita on first becoming a foundation trust on 1 October 2007. The Trust continues to benchmark against the NHS Providers annual benchmarking data. The Trust has not sought any consultation with employees in regard to senior manager remuneration.  The ATS committee has in place an executive directors’ remuneration policy which provides for inflationary uplifts in line with those awarded to staff on Agenda for Change pay scales (where differential awards are made, the Band 9 award will apply to the executive directors). In 2022/23 the executive directors were awarded an uplift in remuneration, as recommended by the Senior Salaries Review Body (SSRB), to reflect the cost of living, and in line with the Agenda for Change conditions.

All executive directors (with the exception of the medical director), receive an annual salary which does not include an option for performance related pay. 

All senior managers with the exception of executive directors are remunerated on national Agenda for Change terms and conditions. The Trust deems this to be economically appropriate to the prevailing employment conditions with the NHS.

The medical director has a job split between a clinical role and medical director role and received nationally applied enhancements to their Trust salary.

The names of the Chair and members of the Board committees and their regularity of attendance at meetings are disclosed in the table on pages 120-121. 

Remuneration for non-executie directors

The Trust moved to follow mandatory guidance on Non-Executive Director remuneration (issued in November 2019), and no inflationary or other local awards were made in 2020/21, 2021/22 or 2022/23.  The re-appointment made in February 2022 completed the transition from locally set remuneration rates to the national guidance.  The previous remuneration levels were very close to those set out in the new guidance, so implementing the guidance did not require any consultation or negotiation.

The components for remuneration for non-executive directors are set out in the table below:

* This figure is net of employer’s national insurance contributions

There are no obligations on the Trust which relate to senior manager service contracts.

Future policy table: performance remuneration and contractual arrangements  

The salary of executive directors and the remuneration of non-executive directors have no element of performance related pay, with the exception of the medical director’s clinical excellence award (CEA). The salary or remuneration represents a single component of the package for each of the directors, with the exception of the medical director who is a psychiatrist and has clinical duties as part of their role, and the above-mentioned CEA, which is classed as a performance related pay. The medical director’s clinical duties are an integral part of their salary and are not remunerated in addition to the base salary. 

The Trust has not introduced any other elements of performance related pay, at any level within the organisation. There is no specific policy on duration of contracts, notice periods and compensation as these are the same as for other staff and are in line with the national terms and conditions of service for NHS staff, known as Agenda for Change.

With the exception of salary, executive directors’ (non-medical) terms and conditions mirror the appropriate national terms and conditions, which is Agenda for Change. The Trust’s medical director was employed on medical and dental terms and conditions of employment for consultants. All other senior managers are employed on Agenda for Change.

Executive directors and senior managers have a notice period in their contract which is invoked if the individual resigns, or the Trust terminates the contract. In the event of a resignation, the Trust has discretion, like all employers, to vary the notice provision if requested by the employee. The only exception to this is where there is a dismissal for gross misconduct in which termination would be without notice.

Compensation scheme and benefits in kind 

There was one payment to a senior manager in respect of loss of office in 2022/23 which consisted of an Interest of Efficiency payment of £237,391 to the Director of Strategy, People and Partnerships. This was calculated by NHS Pensions Agency and recharged to the Trust (2021/22: nil). None of the executive directors serve in a non-executive capacity for other NHS trusts and no payments have been made to third parties for the services of a senior manager. Costs for benefits in kind relate to the provision of lease cars.

Remuneration disclosures 

Accounting policies for pensions and other retirement benefits are set out in note 1.6.2 of the accounts and details of senior employees' remuneration can be found on the following page, all of which is subject to audit.

NHS foundation trusts are required to disclose the relationship between the remuneration of the highest-paid director in their organisation and the lower quartile, median and upper quartile remuneration of the organisation’s workforce.

The banded remuneration of the highest-paid director in the organisation (Medical Director) in the financial year 2022-23 was £160,000-£165,000 on an annualised basis (2021-22, £190,000-£195,000). This is a decrease of 16% on the previous year (2021/22, 4% increase).

Total remuneration includes salary, non-consolidated performance-related pay, benefits-in-kind, but not severance payments. It does not include employer pension contributions and the cash equivalent transfer value of pensions.

Of the percentage change in highest-paid director remuneration, 0% was in relation to salary and allowances whilst there was a decrease of 53% in relation to performance related pay. (2021-22, 4% in relation to salaries and allowances and 0% in relation to performance related pay).

For employees of the Trust as a whole, the range of remuneration in 2022-23 was from £9,405 to £344,163 (2021-22 £13,000 to £222,102). The percentage change in average employee remuneration (based on total for all employees on an annualised basis divided by full time equivalent number of employees) between years is 7% (2021/22, 4%).

Of this percentage change, there was a 7% increase in salaries and allowances and a 42% decrease in performance related pay. (2021/22, 4% increase in salaries and allowances and 5% decrease in performance related pay.)  The Trust has employed several apprentices during 2022/23 which has reduced the lower end remuneration range. The initial increase in salaries began in 2020/21, driven by an increase in agency and bank staffing in response to the COVID-19 pandemic. This increased staffing has continued throughout 2021/22 into 2022/23. Also included within 2022/23 is an allowance for the Agenda for Change pay rise relating to 2022/23 that has been agreed since the year end.

The percentage decrease in performance related pay is driven by the change in Medical Director in 2022/23, with the previous director receiving a higher rate of Clinical Excellence Award payment. There continues to be increased numbers of clinical staff receiving lower value clinical excellence payments than in previous years. For staff receiving national Clinical Excellence Awards, these payments have remained unchanged for several years.

Thirteen employees physically received remuneration in excess of the highest-paid director in 2022-23. (2021/22, 2 employees). This was because there were some changes in medical directorship during the current year which led to part-year salaries. Thirteen employees were paid over £150,000 (2021/22, 13). They consisted of 1 deputy medical director, 1 associate medical director, 4 clinical directors and 7 consultant psychiatrists. (2021/22, 1 medical director, 1 deputy medical director, 3 clinical directors, and 8 consultant psychiatrists (on-payroll)).

The remuneration of the employee at the 25th percentile, median and 75th percentile is set out below. The pay ratio shows the relationship between the total pay and benefits of the annualised highest paid director (excluding pension benefits) and each point in the remuneration range for the organisation’s workforce.

Supporting notes
2022/23 published figures *

1. Jane Marshall, Director of Strategy, People and Partnerships ceased employment with the Trust on 06/01/2023.  Her termination payment consisted of an Interest of Efficiency payment in respect of her loss of office.

2. Anita Lewin, Director of Nursing, Allied Health Professionals and Quality, is retired from service in April 2023. Sharon Harvey was appointed Director of Nursing and Quality from 13/02/2023 to allow a period of handover.
3. Dr Ananta Dave, Medical Director, left the Trust on 13/05/2022. She received a Clinical Excellence Award payment in year which is shown as performance related pay and bonuses. Approximately 1 day per week is spent performing clinical duties.
   
   Dr Jaspreet Phull was appointed Acting Medical Director on 01/05/2022. He maintained his full time clinical role with additional Medical Director Duties. He continued these additional duties until 16/10/2022 following the appointment of a formal Medical Director. He also received a Clinical Excellence Award payment.
   
   Dr Girish Kunigiri was appointed as Medical Director on 14/10/2022. He is also in receipt of a Clinical Excellence Award payment. Approximately 1 day per week is spent performing clinical duties.
4. Amy Beeton was appointed as Director of People on 31/10/2022.

5. Jenna Davies was appointed as Director of Corporate Governance on 01/08/2022.

*The pension related benefits disclosed arise from membership of the NHS Pensions defined benefit scheme. They are not remuneration paid but are the value of pension benefits accrued during the year, calculated as the real increase in pension multiplied by 20 (the HMRC methodology multiplier), less the contributions made by the individual. The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights. It is a calculation that is intended to provide an estimation of the benefit being a member of the pension scheme could provide.

Directors that have Mental Health Officer status receive two years’ worth of pension benefits for every one year after 20 years within the 1995 Section pension. These individuals therefore have significantly greater pension benefits accruing than those without Mental Health Officer status.

The Pension benefits of Trust senior managers table below provides further information on the pension benefits accruing to the individual.

Salaries and allowances: non-executive directors 

The information in the table below is subject to audit

Supporting notes

1. Paul Devlin left the Trust as Chair on 30/04/2021. He was replaced by Kevin Lockyer on 01/05/2021.
2. Philip Jackson, Deputy Chair, left the Trust on 30/04/2022. Sharon Robson was appointed as Senior Independent NED and Deputy Chair on 01/05/2022.
3. Andrew Spring, Audit Chair, left the Trust on 15/07/2022.  Ian Orrell was appointed on 05/08/2022 and took on the role of Audit Chair.
4. Chris Wright was appointed on 01/05/2022.

Pension benefits of Trust senior managers

None of the Trust’s senior managers are members of a different pension scheme. 

Information in the below table is subject to audit.

Supporting notes

The value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20, less the contributions made by the individual. The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights.

This value derived does not represent an amount that will be received by the individual. It is a calculation that is intended to provide an estimation of the benefit being a member of the pension scheme could provide.

CETV is Cash Equivalent Transfer Value.

The method used to calculate CETVs changed, to remove the adjustment for Guaranteed Minimum Pension (GMP) on 8 August 2019. If a director was entitled to a GMP, this will affect the calculation of the real increase in CETV. This is more likely to affect members of the 1995 Section and the 2008 Section pension schemes.

Cash equivalent transfer value (CETV) figures are calculated using the guidance on discount rates for calculating unfunded public service contribution rates that was extant on 31 March 2023. HM Treasury published updated guidance on 27 April 2023; this guidance will be used in the calculation of 2023/24 CETV figures.

Members of the 2015 Section of the NHS Pension Scheme have no lump sum entitlement.

None of the Trust Senior Managers are part of a different pension scheme.