A remuneration structure for NHS provider chairs and non-executive directors

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This remuneration structure seeks to align the remuneration for chairs and non-executive directors of NHS trusts and NHS foundation trusts.

It addresses longstanding disparities between the remuneration of chairs and non-executive directors of NHS trusts and NHS foundation trusts and provides a benchmark for levels of remuneration in the foundation trust sector.

The principal aims are to:

  • establish greater transparency, consistency and alignment in remuneration across provider trusts
  • maintain proportionality in remuneration and avoid unnecessary future escalation
  • effectively respond to current challenges associated with the attraction, recruitment and retention of chairs and non-executive directors, particularly within NHS trusts.

Remuneration structure

For non-executive directors, a single uniform annual rate of £13,000 will apply. Trusts also have local discretion to award limited supplementary payments depending on the organisations’ size in recognition of designated extra responsibilities. Further information about such payments is provided in the document below.

For chairs, it is intended that ranges will apply according to respective trust designations (i.e. groups 1 to 5) based on organisations’ size (annual turnover) and complexity. Variation between lower quartile and upper quartile values should be a function of both the relative complexity of the role and the skills and experience of the chair. The ranges are consistent with the structure associated with very senior manager (VSM) remuneration.

Circumstances may arise, both in NHS trusts and NHS foundation trusts, that require special consideration of particular terms and conditions for chairs or non-executive directors. For NHS trusts, we will review any such issues on a case-by-case basis, while foundation trusts will be expected to explain their rationale for divergence from the structure (as they currently do for other remuneration issues).

For further information and advice please contact the Non-Executive Talent and Appointments Team.

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