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'Inappropriate' bonus for Scottish Enterprise chief comes under fire

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Published Date: 07 August 2009
CALLS for the chief executive of Scottish Enterprise to be denied an "inappropriate" bonus were made last night as the quango unveiled details of increased pay for its board in its annual accounts.
A proposed £18,000 performance bonus for Jack Perry, who in May announced his resignation, is under review by the Scottish Government, as are all bonuses for chief executives of quangos.

Hugh Hall, chief financial officer at the agency, denied the delay over the chief executive's bonus was political, but confirmed that the payout was "not completely certain". The Scottish Government refused to disclose when it would make a decision on bonuses.

Liberal Democrat finance spokesman Jeremy Purvis said it would be "outrageous" to pay a bonus that would raise Perry's pay to £231,000 a year.

The previous year, when SE still oversaw Careers Scotland, his remuneration was £225,000. Since then the quango has been slimmed down and its budget cut more than 40 per cent after the Scottish Government transferred management of the skills body to another quango, Skills Development Scotland.

Purvis demanded that the government "come clean" about paying bonuses.

"They spend all their time attacking Westminster for banking bonuses, while trying to avoid their responsibility on quango bonuses," he said. "I had to drag an admission from the Scottish Government that it was inappropriate that the Scottish Enterprise chief executive's pay remained intact despite the organisation being almost halved.

"It would be utterly outrageous if any government quango chief is paid a bonus in the current economic climate."

While a question-mark hangs over Perry's bonus, other members of the Scottish Enterprise board were awarded performance bonuses, although these were slightly below the 10 per cent limit. Hall received £11,000 in addition to his £143,000 salary.

Chief operating officer Lena Wilson got a £14,000 bonus on top of her salary of £176,000. Her salary grew £10,000 from last year though this reflects her taking on a permanent role as head of the Scottish Government's inward investment agency, Scottish Development International.

Perry and chairman Crawford Gillies were said to be on holiday.

Scottish Enterprise reported a £56m loss, after a £67.5m gain the previous year.

Hall said the loss was due to "accounting issues" including a £60m write-down on the value of land and property and an estimated £6m shortfall in the fully-funded pension scheme.

Nevertheless the agency boasted it had met all its targets bar two.


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  • Last Updated: 06 August 2009 10:19 PM
  • Source: The Scotsman
  • Location: Edinburgh
  • Related Topics: Scottish Enterprise
 
1

The Strategist,

07/08/2009 00:30:32
It would be inappropriate because Perry has achieved nothing of note.
2

Tappets,

Edinburgh 07/08/2009 03:20:08
It appears that public "servants" and associated administrations get off without a scratch and the people who are financing them are bleeding. Orwell wasn't wrong, we are being farmed.
3

common sense voice,

07/08/2009 04:40:46
I follow bonus situation. From what I see, some people (Banking, Sales, CEO's, Business Mgr's) don't only get too much money, but recently the trend appears to be that they get their bonuses for even less performance than in the past, perhaps flat performance and indeed bonuses appear to be expected regardless. Indeed some people appear to be getting bonuses for failure..



4

cabrach loon,

inverness 07/08/2009 07:43:11
why not restrict the bonus to the German 123th month at Christmas.
Most of us just get paid to do our job as best we can, the whole culture is obscene because those receiving the bonuses are already receiving extraordinarily hign and obscene salaries!
Bonuses for single years are wrong / they can resign next year and leave a loss etc!
Civil servants should not receive bonuses and that includes quangos most of which should be scrapped. Why is Broon protecting civil servants and expecting only the private sector to cut back when his tax base is shrinking. The man is nuts and dense! Sad.
5

dyon gollins's back,

Den Haag 07/08/2009 09:14:22
What's Perry ever done which would deserve a salary never mind a bonus???
6

West Coast,

07/08/2009 10:27:46
These salaries are a joke. An organisation that is now half its original size, that fails to meet its targets and is funded by the taxpayer, increases the salaries to its top people. And gives them bonuses!! The Scottish Government as the key stakeholder must not allow public bodies to behave as if they are private sector banks and should step in and stop this nonsense immediately. In addition, a massive £400K pay off is allegedly paid to an individual the entire organisation knows was summarily sacked. Who is protecting the taxpayer from this outrageious greed?
7

Brad,

Glasgow 07/08/2009 12:33:54
As others suggest, perhaps if Perry could demonstrate the exceptionally valuable contribution that his leadership has made then perhaps he deserves his bonus. So, please tell me because I'm not sure, how much difference has SE made to the Scottish economy then...? Whatever it is, it must be much less than before, given how many people and how much budget Perry has given up!

 

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