2015/16 Annual Remuneration Report

Chris Bain and Jorge Castro at Romero House

Chris Bain (CAFOD Director) and Jorge Castro at Romero House (Director of Caritas Quiché)

As an agency of the Catholic Church CAFOD believes that all employees should be treated with dignity and respect. This includes setting remuneration packages and executive salaries that reflect the skills and experience required in particular roles. It also requires careful consideration of our responsibility as stewards of the resources entrusted to us by the Catholic community.

In setting our pay we consider:

  • Is it appropriate? (does it reflect our role as an agency of the Catholic Church and our values, particularly of dignity and stewardship)
  • Is the salary a living wage? (does it meet basic needs as a minimum?)
  • Is it equitable? (does it recognise the individual’s contribution appropriately?)
  • Is it sustainable? (is it acceptable within the economic climate in which CAFOD is operating)

CAFOD’s salary scales are benchmarked within the NGO sector and are generally around the 50th percentile.

CAFOD has a defined set of country-specific salary scales. An individual staff member is paid according to their band/grade and incremental point. The incremental point is determined by the length of experience in their current job. CAFOD does not offer any performance-related or other form of bonuses. Staff have access to view the salary scales for every band/grade and location.

CAFOD’s position is that salary scales are reviewed annually, and may be increased, in line with the principles below:

  • cost of living –  specifically using the consumer price index in the UK (current figure, not year to year comparison) and the IMF forecast inflation rate for all other countries in which we work 
  • pay comparability – benchmarked within our own sector but also referencing public and private sector pay increase estimates
  • affordability – impact on CAFOD’s overall cost base
    • appropriateness – based on our values and taking into account the perspective of principal stakeholders e.g. supporters, partners and trustees
    • the relationship between different levels of salary is an important factor in remuneration policy and CAFOD aims to set a UK salary scale where:
      • the ratio between the highest and lowest salary is within 5:1
      • the ratio between the highest and median (midpoint) salary is within 3.5:1
      • CAFOD is a Living Wage employer

The annual review process aims to maintain the four criteria and benchmarking data in balance but with the option to give more weight to one or more criteria each year to allow for prevailing circumstances.

Remuneration Review Process

This report refers specifically to the process that applied for 2015-16. Following the review and revision of CAFOD’s structure and governance arrangements this process has now been revised. The revised processes are described at the end of this report.

Process for the year 2015-16

The CAFOD Board of Trustees was responsible for setting the remuneration levels for CAFOD senior executives; this was defined as the CAFOD Director and his direct reports, currently the six members of the Corporate Leadership Team (CLT).    

CLT was responsible for setting the remuneration for the CAFOD workforce. However, CAFOD is committed to ensuring that there is a clear relationship between the remuneration policy and practice of senior staff and that of CAFOD’s whole workforce. Therefore, the remuneration review process is designed to accommodate this.

The Board of Trustees delegated the responsibility for making remuneration recommendations to the HR Committee sub-group.

In the autumn of 2015, the HR Committee reviewed the evidence for each of the five principles. This evidence was compiled by the Director of Organisational Development and People and was accompanied by a financial impact analysis provided by the Director of Finance and Services.

The autumn meeting was attended by Director of CAFOD, who outlined the Corporate Leadership Team’s position on remuneration for CAFOD staff members.

The HR Committee also received a submission from Union representatives.

The HR Committee considered all the information received and:

  • made recommendations on the remuneration of senior executives to go before the autumn meeting of the Board of Trustees
  • made recommendations on the remuneration of CAFOD staff members to go to CLT.

At the autumn meeting of the Board of Trustees, the Chair of the HR Committee presented recommendations on senior executive remuneration. The Director of Organisational Development and People presented CLT’s decision on staff remuneration.

The Board considered the information presented and set the senior executive remuneration for the 2015-16 financial year.

Remuneration Ratios

In 2015/16 the following ratios applied to UK contracted staff (including London weighting):

          Highest v Lowest: 3.6:1 (against policy framework of < 5:1)

          Highest v Median: 2.4:1 (against policy framework of <3.5:1)

Trustees and senior staff remuneration

The trustees do not receive any remuneration for their services.

The number of employees whose emoluments (excluding employer’s pension contributions) amounted to over £60,000 in the year was as follows: 

 

2016

2015

£60,001 - £70,000

   1

  3

£70,001 - £80,000

   5

  2

£90,001 - £100,000

   1

  1

Total remuneration and benefits received during the year by CAFOD’s highest paid member of staff (the CAFOD Director) was £92,337 salary and £16,159 employer’s pension contribution. The total remuneration and benefits received during the year by the remaining 4 members of the key management personnel for CAFOD, was £349,724 salary and £47,695 employer’s pension contribution.

Future Remuneration Process

The CAFOD Board of Trustees is responsible for setting the remuneration levels for CAFOD senior executives; defined as the CAFOD Director and his direct reports, currently the eleven members of the CAFOD Leadership Group (CLG).

CLG is responsible for setting the remuneration for the CAFOD workforce. However, CAFOD is committed to ensuring that there is a clear relationship between the remuneration policy and practice of senior staff and that of CAFOD’s whole workforce.

Therefore, the remuneration review process is designed to accommodate this. The Board of Trustees have delegated the responsibility for making remuneration recommendations to the Remuneration Committee.

Annually, in late autumn, the Remuneration Committee will review evidence for each of the five principles. This evidence will be compiled by the Director of People and Performance and will be accompanied by a financial impact analysis provided by the Director of Finance Information and Infrastructure. The meeting will be attended by Director of CAFOD who will outline the CLG’s position on remuneration for CAFOD staff members.

The Remuneration Committee will also receive a submission from Union representatives. This may be in person or in writing.

The Remuneration Committee will consider all the information received and:

  • make recommendations on the remuneration of senior executives to go before the autumn meeting of the Board of Trustees
  • make recommendations on the remuneration of CAFOD staff members to go to CLG.

At the winter meeting of the Board of Trustees, the Chair of the Remuneration Committee will present recommendations on senior executive remuneration. The Director of Organisational Development and People will also present CLG’s decision on staff remuneration.

The Board will consider the information presented and set the senior executive remuneration for the forthcoming year.

Back to top