This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/uk_politics/8569237.stm

The article has changed 3 times. There is an RSS feed of changes available.

Version 1 Version 2
Council chief pay-offs criticised 'Too many' council boss pay-offs
(about 10 hours later)
Council chief executives leaving their jobs early are pocketing an average pay-off of £256,104, a local government spending watchdog report has found. Too many English councils are agreeing large payoffs to get rid of their chief executives, often because of personal differences, a spending watchdog says.
The Audit Commission said of the 37 given severance deals by English councils since 2007, 13 got more than £300,000 and three more than £500,000. A review by the Audit Commission found 37 council bosses left their jobs by "mutual agreement" and were given payoffs of, on average, £256,104.
Some leave because of a "personality clash" with elected councillors - some should be sacked, it said.
The government said new ways to "claw back" taxpayers' money had to be found.The government said new ways to "claw back" taxpayers' money had to be found.
The Conservatives said the pay-offs were an "affront" and that councils had to provide "clearer guidance".The Conservatives said the pay-offs were an "affront" and that councils had to provide "clearer guidance".
The commission said the main reason for the deals - which affected almost a third of chief executives - was personal differences with elected council leaders rather than poor performance. Boomerang bosses
Of the 37 severance agreements between January 2007 and September 2009, the Audit Commission said 13 were for more than £300,000 and three were for more than £500,000. A total of £9.5m was handed out over 33 months.
The commission said the main reason for the deals - which accounted for nearly a third of chief executives' departures in that period - was personal differences with elected councillors rather than poor performance.
FROM THE TODAY PROGRAMME More from Today programme
But it said it was "unusual" for departing chief executives to go straight into a new highly paid job - so-called "boomerang bosses" - after receiving a large payoff - with only six of the 37 cases doing so.
It recommended that, in future, severance deals should be fully disclosed and subjected to tighter scrutiny.It recommended that, in future, severance deals should be fully disclosed and subjected to tighter scrutiny.
The Audit Commission found that, of 122 chief executives departing between January 2007 and September 2009, 37 had been paid off under mutually-agreed contract terminations.
'Quick-fix solution'
A total of £9.5m was handed out over 33 months.
The commission found competent chief executives had been laid off needlessly and those not up to the job were being paid off when they should have been sacked.The commission found competent chief executives had been laid off needlessly and those not up to the job were being paid off when they should have been sacked.
It recommends that consideration be given to advance "pre-nuptial" agreements setting out the specific grounds and terms for severance of contract. 'Reward for failure'
It recommends that consideration be given to advance "pre-nuptial" agreements setting out the severance terms before chief executives are hired.
Proposed severance packages should be reviewed by cross-party committees first and details of any payouts should be published shortly afterwards.
The report said payoffs, often following a change of political leadership, were "not always justified" and said they should not be a "reward for failure".
Councils need talented people so they can improve on their record as the most efficient part of the public sector Jo MillerLocal Government AssociationCouncils need talented people so they can improve on their record as the most efficient part of the public sector Jo MillerLocal Government Association
For the government, Communities and Local Government Secretary John Denham backed the recommendations and wrote to Margaret Eaton, chairman of the Local Government Association (LGA), urging their adoption. Chief executives should have appraisals, to mount evidence for a dismissal if necessary and mediation should be used "more widely" and not as a last resort.
He said: "The Audit Commission report shows that too many chief executives are being dismissed because they have fallen out with council leaders - this can cost as much as £500,000 in some cases and is all too often seen as a quick-fix solution. Audit Commission chairman Michael O'Higgins told the BBC: "There are three key issues coming out of this report.
"Taxpayers' money should not be used to resolve personal differences. It is time we find a way to change the rules so taxpayers' money can be clawed back where the system has been exploited... "Firstly, are too many people being paid off? The answer is yes, because councils are not following procedures designed to reduce payoffs for chief executives.
"Local government, like the rest of the public sector, needs to show that it can take the tough choices to make sure public money is used in a way that protects the frontline services which matter to people most." "Secondly, are some payments excessive? The answer is yes, because councils haven't thought about this in advance of employing somebody and they haven't followed the best procedures to keep the cost to a minimum.
Audit Commission chairman Michael O'Higgins said: "There have been a lot of assertions made on this subject, against the backdrop of concerns about public sector pay generally. "And thirdly, is there adequate scrutiny and transparency of this process? There isn't and there should be."
"Now the Audit Commission is laying out the facts and making recommendations aimed at protecting the public purse, as well as the rights of chief executives and council leaders." Local Government Secretary John Denham backed the report's recommendations and has urged the Local Government Association to see they are adopted.
He said: "Taxpayers' money should not be used to resolve personal differences. It is time we find a way to change the rules so taxpayers' money can be clawed back where the system has been exploited."
'Huge organisations''Huge organisations'
For the Conservatives, shadow local government minister Bob Neill said: "Such payments are an outrageous waste of taxpayers' money and an affront to families facing soaring council tax bills. For the Conservatives, Bob Neill said: "Such payments are an outrageous waste of taxpayers' money and an affront to families facing soaring council tax bills. There should be no rewards for failure, either in the public or private sector."
"There should be no rewards for failure, either in the public or private sector. There needs to be clearer guidance discouraging such redundancy payments and greater transparency about the pay and perks of senior town hall staff." Jo Miller, deputy chief executive of the Local Government Association, said council chief executives ran huge organisations with multi-million pound budgets running vital services.
Jo Miller, deputy chief executive of the LGA, said: "Council chief executives are responsible for huge organisations with budgets of anything up to £1bn a year, running services that are vital to every family in Britain.
"Councils need talented people so they can improve on their record as the most efficient part of the public sector. In deciding salary levels they need to balance that with the need for all salaries to be demonstrably reasonable."Councils need talented people so they can improve on their record as the most efficient part of the public sector. In deciding salary levels they need to balance that with the need for all salaries to be demonstrably reasonable.
"It is right that chief executive pay is subject to public scrutiny. All council senior pay and severance packages are subject to scrutiny by external auditors."It is right that chief executive pay is subject to public scrutiny. All council senior pay and severance packages are subject to scrutiny by external auditors.
"Council leaders are very aware of the impact of decisions about senior staff as they are subject to the voters' judgement through the ballot box.""Council leaders are very aware of the impact of decisions about senior staff as they are subject to the voters' judgement through the ballot box."