§ Mr. Bill Walkerasked the Prime Minister what new arrangements she is making for determining the salaries of the chairmen and members of the boards of nationalised industries.
§ The Prime MinisterI announced on 7 July 1980 that the Top Salaries Review Body would no longer be asked to advise on the salaries of the chairmen and members of nationalised industry boards and that in future these salaries would be determined by the Minister concerned in each case with the approval of the Minister for the Civil Service.
Under the new, more flexible, arrangements which take effect from 1 April 1981, salary increases will be based on managerial and market considerations and not on traditional comparisons and ranking. Chairmen and non-executive directors will have an important role and will make recommendations on the pay of full-time board members to the appropriate Minister. Salary increases will normally take effect on the same date as those for the management staff in the industry concerned.
Factors to be taken into account will include the need to recruit able enough people to the board, whether from inside or outside the industry; the need to retain and reward board members of experience and ability; internal differentials between board members and senior management staff; the performance of the industry; and the general economic climate.