I'm worth it, insists chief of council as he defends salary
THE chief executive of Derbyshire County Council has defended his salary after the Government said authorities should consider axing the role to save money.
Nick Hodgson earns £152,000 a year, which he claims ranks him among the lowest-paid county council chief executives.
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Nick Hodgson
Two years ago, Local Government Secretary Eric Pickles called on chief executives on more than £150,000 to cut their pay by 5%.
He said those on more than £200,000 should cut their pay by 10%.
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In recent weeks, the Tory minister went further and said councils should consider axing the posts altogether to help offset budget cuts.
Amber Valley Borough Council has since got rid of its chief executive, Peter Carney, who had worked for the authority for 27 years and earned over £100,000 a year.
But county council leader Andrew Lewer said there were "no plans" to axe Mr Hodgson's job.
Mr Hodgson, who was appointed chief executive at Derbyshire County Council in 1997 and has not had a pay rise in five years, said he was "not thinking of taking a pay cut".
He added: "I think I do a vital job here. I help manage a £500 million organisation that provides numerous services that are fairly well regarded by local people.
"If I was doing the same role in the private sector, I would perhaps be paid more.
"I used to be the lowest-paid county council chief executive in the country. I'm not sure where I'm ranked now but I won't be far off the bottom.
"I'm certainly not earning £200k to £220k like some. Yes, I've got a damn good salary but I think I earn it."
Mr Hodgson added that he had withdrawn from the council's pension scheme, saving the authority £18,000 a year.
Councillor Lewer, whose Tory group took charge at Matlock's County Hall in 2009, said he wanted to keep Mr Hodgson in his post.
Mr Lewer said: "What may be workable in a smaller council may not be in a larger unitary or county council.
"We have no plans to abolish the position of chief executive and this view is strengthened by having, in Nick Hodgson, such a capable and respected individual in the post."
Frank McArdle, chief executive of South Derbyshire District Council, earns £133,667 a year.
He said: "It is a matter for my employers to decide whether they wish for me to take a pay cut."
Derby City Council chief executive Adam Wilkinson has a salary of about £160,000 and Erewash Borough Council chief Jeremy Jaroszek was given a £100,000 salary when he took the role in 2006. Both were unavailable for comment.
Comments
by smshogun
Thursday, January 03 2013, 6:22PM
“He earns nearly as much as me, the diference being over half mine is from bonuses which have to be earned from performance.”
by allinfairness
Thursday, January 03 2013, 4:38PM
“@Ollyb1 - We'll agree to disagree. You could say the same for private sector operatives that work hard on the front line in generating profits but in such instance you prefer to credit their bosses saying they are worthy of their prodigious salaries. In all organisations leaders are accountable for performance and the way it is measured in private and public sector differs greatly, which is the point I made. The fact is there is market rate for all executive jobs and these values are tested by private sector specialists such as HAYS, as well as the Chartered Institute of Personnel and Development (CIPD). This story, whilst provocative in nature potentially states that within this market Hodgson takes among the lowest in the country. This is his justification for defending it I'm sure.
As for the cuts, so Hodgson is to now to blame? Again, let's agree to disagree!”
by OllyB1
Thursday, January 03 2013, 4:24PM
“allinfair - In many jobs including my own the same is true. Even a lolypop lady has the responsibility of protecting life. Jannine2011 hits the nail on the head with her last comment, all he probably does is chair meetings and designate - oh and entertain guests at our expense.
Oh and quality of life - obviously he's not doing his job very well then if all the cuts to services are anything to go by.”
by allinfairness
Wednesday, January 02 2013, 11:55PM
“@ OllyB1. If we are to accept your argument about the importance of private sector work over public sector, given the average salary of a CEO of a FTSE 100 company is £4.8m, Hodgson's salary of £152k, a fraction of private sector organisations, some with less turnover can still be justified surely? Extend this to FTSE 250 companies and the gap is almost equally as stark. Your view of risk is also interesting. Yes, private sector professionals have to compete to make money. Hodgson's challenge is a tad different as people's quality of life is at stake. If he gets it wrong lives are lost. What's the price of that?”
by ianshelton
Wednesday, January 02 2013, 4:00PM
“I'm worth it says chief exec - you're not say the population of Derbyshire !”
by janine2011
Wednesday, January 02 2013, 2:43PM
“Markus, in the private sector I would agree with the need for a CEO they are in business to make money therefore the wages are necessary but not in council role. They oversee all the staff, or rather their assistant does, and yes I have had dealings with more than one of the CEOs of Derby City Council over the years, none of which could actually deal with the problems, every single one had to pass me to someone else. That person was always at the bottom of the payscale, a person who is a damn sight more use than an overpaid, underworked CEO of whichever council.”
by Southcliffe
Wednesday, January 02 2013, 2:05PM
“Always these issues generate interesting language.
The article reads: "Nick Hodgson earns £152,000 a year" which implies a value judgement. Whether or not he 'earns' this payment is really for his employers to judge.
Perhaps a better description would be: "Nick Hodgson is paid £152,000 a year"?
But this language is nothing compared to that of bankers, who refer to their salaries and benefits packages as 'compensation'! It's the tax payers who should be compensated for what they did to the economy, but little sign of that so far . . . .”
by OllyB1
Wednesday, January 02 2013, 1:59PM
“There is a difference between the council and other multi million pound organisations - competition. In a profit making competitive organisation such as Rolls Royce or Comet the pressure is greatly magnified as the cost of and risk of/ result of failure is so much greater. The right name at the top also gives leverage for extra contracts and increased profits. Therefore CEO of a council is not in the same league as a 'profit making/loosing' organisation.
Nick Hodgson sounds over paid and looks over fed to me
MarcusOne - I agree with janine2011 and it doesn't look like I'm alone judging by the ticks
60 yrsramfan - The majority of school leavers go to university because there's a lack of job openings for them when they leave school, and to party. Also I'm not familiar with Hodgson's qualifications or indeed if he has any. Could you enlighten us? I would guess it's more a case of who he knows that shoe horned him into such an overpaid, cushy job!”
by Marcus_oNE
Tuesday, January 01 2013, 11:37PM
“Janine2011 your comment shows just how clueless you are about what a council does, the title town clerk is a little misleading as to the actual role...and you are talking about a role that existed 40 years ago.. And the fact that you think a CEO just delegates shows how ignorant or far removed from a senior role you actually are!”
by allinfairness
Tuesday, January 01 2013, 6:56PM
“Gonzo - if you haven't read my submission how do you assert that it's 'diatribe'?”