Remuneration Report
Remuneration and Terms of Service Committee
An overview of all matters relating to the remuneration of all staff and more detailed consideration of the remuneration of the members of the Executive Group is performed by the Agency's Remuneration and Terms of Service Committee. The Committee membership comprises of four non-executive Board members, chaired by Sir William Stewart (Board Chairman). The Committee was established in July 2005. Prior to July 2005, the functions were conducted by the Human Resources and Remuneration Committee. The members of the Committee are:
Sir William Stewart (Chairman)
Professor Charles Easmon
Ian Cranston
Michael Beaumont
Since its formation in July 2005, the Committee has been responsible for making recommendations to the Board, within agreed terms of reference, on the Agency's framework of staff and executive remuneration and on overall remuneration packages for those senior executives directly accountable to the Chief Executive.
The Remuneration and Terms of Service Committee is advised by the Director of Human Resources. The Committee is also able to call upon external advice, when it chooses to do so.
The Remuneration Report has been prepared in consultation with the Remuneration and Terms of Service Committee, following the provisions in the Government's Financial Reporting Manual.
Remuneration Policy
Non-executive Board members
Non-executive Board members, including the Chairman, are appointed by the Secretary of State for Health or by the Ministers of the Devolved Administrations, as advised by the Independent Appointments Commission, for a defined term, normally four years. They are appointed through a rigorous process of open competition against an agreed specification of the roles and capabilities required. Non-executive Board members are eligible to be considered for reappointment at the end of their term of office.
The Secretary of State for Health or the Ministers of the Devolved Administrations determine the remuneration of the non-executive board members, which they review annually.
In addition to receiving the fees for their normal Board duties and responsibilities, non-executive Board members are entitled to receive daily allowances for carrying out work outside and additional to those normal Board duties and responsibilities. This work is classified into four areas: chairing recruitment panels for medical appointments; serving as panel members for final stage grievance and disciplinary hearings; specially commissioned consultancy work; and serving or acting as an observer on the Board (or similar) of other organisations as a representative of the Agency where no payment is received for this from the other organisation.
Non-executive Board member remuneration is not pensionable.
In addition to the non-executive Board members appointed by the Secretary of State for Health or the Ministers of the Devolved Administrations, a number of advisers attend the Agency's Board meetings. These advisers receive the same remuneration as the non-executive Board members.
The remuneration of non-executive Board members is not performance related, but performance is assessed by the Chairman of the Board through an annual appraisal process.
Members of the Executive Group
The Health Protection Agency's remuneration package for members of the Executive Group consists of an all inclusive salary, and pension provisions. In determining the remuneration of members of the Executive Group, the Remuneration Committee has regard to:
-
Pay and employment policies elsewhere in the Agency, especially when determining annual salary increases;
-
The Principles of Good Governance relating to senior executives remuneration appropriate to the Agency;
-
The need to recruit, retain and motivate suitably able and qualified people to exercise their different responsibilities;
-
Regional/local variations in labour markets and their effects on recruitment and retention.
The salaries of the members of the Executive Group are reviewed annually, in line with guidance from the Department of Health and changes to terms and conditions of employment in the NHS. The increase in basic salary from 2004/05 to 2005/06 of 3.225 per cent was in line with the increase for all employees throughout the Agency. In 2005/06, Dr Roger Cox received an additional increase which related to his wider role and responsibilities within the Health Protection Agency following the merger with the National Radiological Protection Board on 1 April 2005.
There are no performance related bonuses payable to members of the Executive Group; h owever their performance is assessed by the Chief Executive in consultation with the Chairman of the Board through the Agency's annual appraisal procedure.
The members of the Executive Group (with the exception of Dr Cox) are members of the NHS Pension Scheme. Dr Cox transferred to the Health Protection Agency from the National Radiological Protection Board on 1 April 2005 and retained his membership of the United Kingdom Atomic Energy Authority combined Pension Scheme that offers very similar benefits to the NHS Scheme. Details of the pension schemes, including the benefits payable, are included in the notes to the financial statements.
The members of the Executive Group hold employment contracts which are open-ended until they reach the normal retirement age of 65. Early termination, other than for misconduct, would result in the individual receiving compensation in accordance with NHS Whitley terms and conditions and, in the case of Dr Roger Cox, in accordance with the terms of the United Kingdom Atomic Energy Authority Combined Pension Scheme.
Remuneration of the Non-executive Board Members
The total emoluments of the Chairman of the Board, Sir William Stewart, for the year ended 31 March 2006 amount to £60,000. In 2005 the Chairman received a combined total of £52,222, which comprised of £36,802 in respect of his Chairmanship of the Health Protection Agency and £15,420 in respect of his Chairmanship of the National Radiological Protection Board. All other non-executive board members received emoluments of £5,673 (2005: £5,535) in respect of their Board responsibilities. Non-executive members who served for part of the year received the relevant proportion of this sum.
In addition to their basic Board remuneration, the following non-executive Board members received the following amounts in respect of daily allowances for carrying out a number of specific duties additional to their normal Board duties and responsibilities:
|
2006 |
2005 |
|---|---|---|
Dr Parvaiz Ali |
- |
271 |
Michael Beaumont |
271 |
542 |
Ian Cranston |
2,745 |
1,084 |
Professor Charles Easmon |
271 |
- |
Dr Vanessa Mayatt |
4,663 |
4,336 |
Dr Sandy Primrose |
813 |
678 |
Dr Geoffrey Schild |
278 |
813 |
Professor Richard Wise |
834 |
771 |
No other benefits were received by any non-executive Board member.
Remuneration of the Members of the Executive Group
The salary and allowances for the full year of the members of staff who served on the Executive Group during the year ended 31 March 2006, classified into bands of £5,000, were as follows:
|
Salary |
Other Remuneration |
Total 2006 |
Total 2005 |
|---|---|---|---|---|
|
£'000 |
£'000 |
£'000 |
£'000 |
Professor Pat Troop1 |
170-175 |
- |
170-175 |
165-170 |
Ms Lis Birrane |
70-75 |
- |
70-75 |
70-75 |
Professor Peter Borriello1 |
135-140 |
- |
135-140 |
130-135 |
Dr Roger Cox1 |
125-130 |
- |
125-130 |
85-90 |
Dr Roger Gilmour |
145-150 |
5-10 |
150-155 |
145-150 |
Michael Harker |
100-105 |
5-10 |
105-110 |
105-110 |
Dr Mary O'Mahony |
155-160 |
- |
155-160 |
155-160 |
John Phipps |
100-105 |
0-5 |
105-110 |
100-105 |
Dr Tony Sannia1
|
110-115 |
- |
110-115 |
105-110 |
1 Denotes person who are currently member of the Health Protection Agency Board
The remuneration of Professor Pat Troop and Dr Mary O'Mahony includes clinical excellence awards funded by the Department of Health.
Dr Roger Cox, formerly Director of the National Radiological Protection Board served as a full member of the Executive Group for the two years to 31 March 2006. However, no costs were incurred by the Health Protection Agency in relation to the year ended 31 March 2005 and the total shown for that year relates to the costs incurred by the National Radiological Protection Board.
The other remuneration relates wholly to relocation expenses. No benefits in kind were received by any member of the Executive Group and no amounts were payable to third parties for services of any member of the Executive Group. During the year no awards or compensation payments have been made to former members of the Executive Group.
Pension Entitlements of Members of the Executive Group
The pensions entitlements of the members of the Executive Group are as follows:
|
Real Annual Increase in Accrued Pension (bands of £2,500) |
Real Annual Increase in Lump Sum (bands of £2,500) |
Accrued Pension as at 31 March 2006 (bands of £2,500) |
Lump Sum Value as at 31 March 2006 (bands of £2,500) |
Cash Equivalent Transfer Value as at 31 March 2005 (bands of £1,000) |
Real Annual Increase in Cash Equivalent Transfer Value (bands of £1,000) |
|---|---|---|---|---|---|---|
|
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
£'000 |
|
|
|
|
|
|
|
Professor Pat Troop |
0.0-2.5 |
0.0-2.5 |
70.0-72.5 |
212.5-215.0 |
1,234-1,235 |
16-17 |
Ms Lis Birrane |
0.0-2.5 |
2.5-5.0 |
0.0-2.5 |
5.0-7.5 |
19-20 |
9-10 |
Professor Peter Borriello |
0.0-2.5 |
2.5-5.0 |
32.5-35.0 |
100.0-102.5 |
460-461 |
25-26 |
Dr Roger Cox |
7.5-10.0 |
22.5-25.0 |
40.0-42.5 |
122.5-125.0 |
566-567 |
113-114 |
Dr Roger Gilmour |
0.0-2.5 |
2.5-5.0 |
10.0-12.5 |
35.0-37.5 |
- |
- |
Michael Harker |
0.0-2.5 |
0.0-2.5 |
45.0-47.5 |
137.5-140.0 |
720-721 |
17-18 |
Dr Mary O'Mahony |
0.0-2.5 |
7.5-10.0 |
62.5-65.0 |
187.5-190.0 |
994-995 |
36-37 |
John Phipps |
0.0-2.5 |
2.5-5.0 |
15.0-17.5 |
45.0-47.5 |
- |
- |
Dr Tony Sannia |
0.0-2.5 |
2.5-5.0 |
12.5-15.0 |
42.5-45.0 |
197-198 |
18-19 |
The Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a scheme member at a particular point in time. The benefits valued are the member's accrued benefits and any contingent spouse's pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme. The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies. The CETV figures include the value of any pension benefit in another scheme or arrangement which the individual has transferred to the NHS Pension Scheme (or in the case of Dr Cox, to the United Kingdom Atomic Energy Authority Combined Pension Scheme) . They also include any additional pension benefit accrued to the member as a result of their purchasing additional years of pension service in the scheme at their own cost. CETVs are calculated within the guidelines and framework prescribed by the Institute and Faculty of Actuaries.
The real increase in the value of the CETV reflects the increase in CETV effectively funded by the employer. It takes account of the increase in accrued pension due to inflation, contributions paid by the employee (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.
Professor Pat Troop CBE
(Chief Executive)
30 June 2006
