£115k payout to enterprise body's boss in lieu of notice sparks fury

Published on Wednesday 18 August 2010 16:09

THE outgoing chief executive of Scottish Enterprise picked up a taxpayer-funded pay package of £271,000 in 2009-10 that included a payment of £115,219 for a notice period which he did not work.

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• New CEO Lena Wilson earns 203,000 a year Picture: Getty

Jack Perry, 55, who was replaced by Lena Wilson in November last year, was the employee to benefit most from the economic development agency's largesse, according to the organisation's accounts published yesterday.

The Scottish Government-funded quango paid Ms Wilson a total of 203,000 in salary (191,000) and bonuses (11,000) during a financial year that saw Scottish Enterprise pay 1.226 million to four board members and four senior staff. Hugh Hall, a board member who resigned in March this year, received a total package of 174,000. A fourth board member, Paul Lewis, received a package of 132,000.

Senior staff members Linda McDowall, Jim McFarlane, David Smith and Julian Taylor received 102,000, 152,000, 104,000 and 88,000 respectively.

Mr Perry resigned on May 28 last year after five and half years as Scottish Enterprise's chief executive. He agreed to work 12 months' notice to give the quango time to find a suitable successor. At the beginning of November, Ms Wilson was promoted to the post from within the organisation. Previously, she had worked as the agency's Chief Operating Officer.

Her promotion meant there was no need for Mr Perry to continue as chief executive and he stepped down on 5 November, almost seven months short of the end of his notice period. The Remuneration Report, contained in the accounts, revealed that Mr Perry received 150,000 plus about 6,000 in benefits for working from the beginning of the financial year (1 April, 2009) to 4 November, 2009. Even though he then quit the organisation, he took home another 115,219 in salary, to take him up to May 28 this year — the rest of his 12-month notice period.

The report showed that Mr Perry, who transferred his previous pensions into the Scottish Enterprise pot, will receive a further lump sum of up to 135,000 plus a 45,000 pension when he reaches retirement age.

Yesterday politicians attacked the packages. Gavin Brown MSP, the Conservative enterprise spokesman, said: "Like any agency funded by the public purse, every single pound has to be accounted for and justified. I am calling on the Scottish Government to justify the payout of 115,000 made to the former chief executive of Scottish Enterprise in lieu of notice.

"Paying someone for the work that they do is one thing, but paying them for work they don't do is truly something else."

Scottish Liberal Democrat leader Tavish Scott said: "Health boards are cutting nursing posts, 90 per cent of new teachers can't get a job and small businesses are folding. Yet the government's main economic agency has awarded its chief executive and board members bumper salaries."

A spokesman for Scottish Enterprise said: "At the time of Jack's resignation, we accepted his offer to work his 12 months' notice as we wanted to undertake an extensive search and find the best person for the job.

"Had we appointed an external candidate, we would have required the full 12 months in order to complete an appropriate handover. However, we were able to appoint an internal candidate, whose role we did not back-fill and in doing so, we have been able to reduce our overall salary bill by 180,000.

"We also have a commitment to reduce our senior leadership. Over the past two years, we've reduced the number of director posts by 35, generating savings of 3.5m from our salary bill. We also announced further changes in July, which will see another 20 director posts go, saving an additional 2m in the longer term."

A Scottish Government spokesman said it was "keeping a tight rein on public sector pay in general and has frozen pay for high-earning public employees to ensure delivery of full value for taxpayers' money".