Salaries of Third Sector Chief Executive have passed through the 100,000 pounds marker. The median pay of a Chief Executive in organisations employing over 1000 staff has now reached 103,000 pounds. This survey report from the Association of Chief Executives of Voluntary Organisations also reveals problems over recruitment and diversity across the sector.

The salary increases of Chief Executives extended lower down the management chain with the number of respondents earning less than 50,000 per year dropping from 53 per cent in 2006 to 35 per cent this year. The new salary pattern reflects the changing character of organisations and particularly the growth in professionalism as well as the focus on the importance of leadership.

About one third of CEOs are recruited from the private sector, but the majority come from the public sector.

Inconsistencies were revealed in comparisons between median salaries of men and women. Overall in the sector, women’s salary median has decreased by 2.8 per cent while men’s has risen by 3.9 per cent further widening the gender pay gap.

The survey also showed weaknesses in succession planning and recruitment for CEOs and Chairs. 74 per cent of CEOs and 68 per cent of chairs said that there is no natural successor or succession planning in place for the CEO, despite 58 per cent of CEOs actively thinking about their next move. Some 57 per cent of boards used ‘word of mouth’ for recruiting Chairs. Many Board members are similarly recruited.

The closed recruitment processes for Chairs and Board members is thought to be mainly responsible for a marked lack of diversity across the sector. Only one third of boards have any Black or Ethnic Minority representation and the situation has not improved since the 2006 pay survey.