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HR Chief in bonus row

Jamie Pittock

24th September 2009

The payment of an annual bonus to the Chartered Institute of Personnel and Development CEO (on top of her £300,000 per year salary) raises a few eyebrows in the HR profession

As readers of recent HR-related items will know, there have been two common themes that have been the subject of recent discussion: The development of the CIPD HR Profession Map, and the ongoing debate over the UK’s bonus culture.

In a bizarre series of events, these two separate issues have been united into one in what threatens to be a storm within the HQ of the HR profession.

Although the CIPD has banned discretionary bonuses for employees this year because the organisation did not hit its financial targets, and froze base pay for the majority of its staff, it has emerged that CIPD Chief Executive Jackie Orme has just received a bonus to top up her £3000,000 per year salary. According to the CIPD, the pay freeze was implemented to minimise the need for redundancies and to help finance a freeze in 2009 membership fees.

A spokesman for the CIPD told Personnel Today (the major rival to the CIPD’s own People Management publication) that the CEO’s remuneration package was smaller than that of her predecessor and that her performance was assessed against a scorecard of membership, financial, service development and strategic measures and targets. The launch of the CIPD HR Profession Map was highlighted as a major achievement over the last year.

The HR social networking sites are currently buzzing with opinion and gossip about the fairness or otherwise of the bonus payment!

Follow the link below for more information on the emerging debate.

CIPD staff get pay freeze, CEO gets bonus

Jamie Pittock

Digital @ tutor2u.

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