NEWS: Government Expected to Cap Academy CEO Pay at £174,000

As reported by the Guardian, academy trust chief executives in England could face a new salary cap under government plans aimed at bringing executive pay more closely into line with the wider education sector

Education Secretary Bridget Phillipson is expected to announce that academy trusts will require government approval before advertising executive salaries above £174,000. Future pay rises are also expected to be linked to the annual pay awards agreed for teachers.

The proposals are expected to be unveiled ahead of the publication of this year’s teacher pay recommendation from the government’s independent review body.

Nearly 100 academy trust chief executives currently earn more than £200,000 a year, although executive pay varies considerably between trusts. Analysis shows spending on chief executive salaries ranges from less than £5 per pupil in some trusts to more than £150 in others.

The plans would bring academy trusts, including multi-academy trusts responsible for running groups of state schools, into line with executive pay arrangements already used across the NHS and further education sector.

While the Department for Education declined to comment on the proposals, a government source said the changes were intended to improve fairness for both taxpayers and teachers.