AH ANNUAL REPORT 2018

accordance with Non-Executive remuneration levels for
NHS trusts. Six Executive Directors were appointed by
the outgoing Liverpool Community Health NHS Trust
Board’s Remuneration Committee; these roles were
not separately remunerated during this time over and
above the salaries paid by Alder Hey. The Alder Hey
Remuneration Committee subsequently awarded a
small discretionary payment to five Executive Directors
(excluding the Chief Executive) in recognition of the dual
roles they performed in delivering the management
contract.
During 2017/18 there were a total of 13 voting Board
Directors in post across the period. Of these, eight
individuals claimed £8,147 in expenses; for 2016/17 the
figures were 14 directors claiming £10,498 in expenses.
In the year there were 27 governors in office, seven of
whom received £2,136 in expenses; whereas in 2016/17
seven governors claimed £3,310.36.
The HM Treasury FReM requires disclosure of the
median remuneration of the reporting entity’s staff and
the ratio between this and the mid-point of the banded
remuneration of the highest paid director (as defined
as a senior manager in paragraph 2.33 and paragraphs
2.49 to 2.53), whether or not this is the Accounting
Officer or Chief Executive. The calculation is based on
full-time equivalent staff of the reporting entity at the
reporting period end date on an annualised basis.
The remuneration of the median salary and multiple to
the highest paid employee of the Trust for 2017/18 and
the prior year comparative is provided below:
Band of Highest Paid
Director (Bands of £5,000)
2017/18 2016/17
£170-175 £155-160
Median Total Remuneration £30,682 £30,547
Ratio 5.6 5.2
The range of staff remuneration was £994 to £258,670
(2016/17: £544 to £338,653).
There are two senior managers who during the year
were paid more than £150,000 (this figure being the
threshold used in the Civil Service for approval by the
Chief Secretary to the Treasury as per Cabinet Office
guidance and considered by NHS Improvement as an
appropriate benchmark for NHS foundation trusts).
One of these was the Chief Executive, the other is the
Trust’s Development Director. The Trust is satisfied that
for both roles the level of remuneration is reasonable for
the responsibilities carried and benchmarks favourably
with comparable organisations.
The Trust’s remuneration policy applies to Executive
Directors and associate Directors, i.e. non-voting
Executives and is based upon open, transparent
and proportionate pay decisions. All pay decisions
are based on market intelligence and are designed
to be capable of responding flexibly to recruitment
imperatives to secure high calibre people. When setting
levels of remuneration, the Trust’s Nominations and
Remuneration Committees also take into account the
remuneration policies and practices applicable to our
other employees, along with any guidance received
from the sector regulator and the Department of
Health. The Committee also receives professional
independent reports based on objective evidence
of pay benchmarking across a range of industry
comparators. The conclusion reached in professional
independent reports is that ‘weightings accredited to
the various posts in relation to market comparisons had
resulted in remuneration that is in line with current pay
practice.’ The way in which the Committee operates is
subject to audit scrutiny. The work of the Committees is
subject to an independent level of scrutiny by the Audit
Committee and this scrutiny can be exercised at any
time.
The remuneration and retirement benefits of all
directors, together with all other relevant disclosures are
set out below.
Signed:
Louise Shepherd
LOUISE SHEPHERD CBE
Chief Executive
22nd May 2018
Alder Hey Children’s NHS Foundation Trust 44
Annual Report & Accounts 2017/18