Remuneration and staff report
Remuneration Report
Trust board remuneration committee
The remuneration committee is responsible for advising on the appointment and/or dismissal of executive directors and directors, the approval of their remuneration and terms of service, and for the monitoring of their performance against delivery of organisational objectives. Membership is drawn from the non-executive directors and has four members including the chair.
The chief executive is entitled to attend the committee and be consulted with when the appointment and remuneration of the executive directors is being considered. He/she is excluded from meetings on his/her own position. All appointments are by public advertisement, and external assessors are part of the recruitment process.
Remuneration and performance conditions
The remuneration of the chair and the non-executive directors is decided by the secretary of state. The time commitment contracted is approximately three days per week for chairs and two-and-a-half days per month for non-executive directors.
Where the workloads of the chair and non-executive directors exceed this in response to the requirements of the Trust no further remuneration is paid.
To determine an executive director’s salary level, the remuneration committee uses one or more of the following independent benchmarking comparative data as appropriate to the requirements of the position being fulfilled: Hay Group; NHS Foundation Trust Network; NHS ambulance services; NHS Providers Survey.
Our policy on remuneration of senior managers fully reflects the national guidance issued by the Department of Health and Social Care. The performance of senior managers is assessed by performance against objectives. Executive directors have permanent employment contracts with termination periods of six months. The exception to this policy is by agreement of the remuneration committee.
Reporting of other compensation schemes – exit packages
There are no special contractual compensation provisions for early termination of executive director’s contracts. Early termination by reason of redundancy is subject to normal NHS terms and conditions of service handbook or, for those older than the minimum retirement age, early termination by reason of redundancy or ‘in the interests of the efficiency of the service’ is in accordance with the NHS pension scheme. Staff above the minimum retirement age, who themselves request termination by reason of early retirement, are subject to the normal provisions of the NHS pension scheme.
Salary and pension entitlement of the Board
The chief executive has determined that senior managers are those people in senior positions having authority or responsibility for directing or controlling our major activities. This means those who influence the decisions of the entity as a whole rather than the decisions of the individual directorates or departments.
Detailed in this report are the remuneration, salary and pension entitlements of the senior managers. These disclosures have been audited.
Staff report
This reports staff numbers, staff composition, sickness absence data, expenditure on consultancy and exit packages.
Salary and pension entitlements of senior managers
Pension benefits
The following pension benefits have accrued for those senior managers directly employed by the Trust:
| Title | Name | Real increase in pension at pension age (bands of £2,500) | Real increase in pension lump sum at pension age (bands of £2,500) | Total accrued pension at pension age at 31 March 2023 (bands of £5,000) | Lump sum at pension age related to accrued pension at 31 March 2023 (bands of £5,000) | Cash Equivalent Transfer Value at 1 April 2022 £'000 | Real increase in Cash Equivalent Transfer Value £'000 | Cash Equivalent Transfer Value at 31 March 2023 £'000 | Employer’s contribution to stakeholder pension £'000 |
|---|---|---|---|---|---|---|---|---|---|
| Chief Executive | Tom Abell* | NIL | NIL | NIL | NIL | NIL | NIL | NIL | NIL |
| Chief Operating Officer | Marcus Bailey | 0-2.5 | NIL | 45-50 | 90-95 | 703 | 34 | 758 | NIL |
| Director of Finance and Commissioning | Kevin Smith | 2.5-5 | 0-2.5 | 65-70 | 90-95 | 1033 | 65 | 1130 | NIL |
| Director of People Services |
Marika Stephenson | 0-2.5 | NIL | 0-5 | NIL | 9 | 30 | 39 | NIL |
| Medical Director | Dr Simon Walsh** | NIL | NIL | NIL | NIL | NIL | NIL | NIL | NIL |
| Director of Integration | Kate Vaughton | 2.5-5 | 5-7.5 | 30-35 | 55-60 | 430 | 71 | 514 | NIL |
| Director of Corporate Affairs and Performance |
Emma De-Carteret |
2.5-5 | 2.5-5 | 25-30 | 40-45 | 294 | 45 | 348 | NIL |
| Director of Nursing | Melissa Dowdeswell | 2.5-5 | NIL | 20-25 | NIL | 161 | 43 | 209 | NIL |
|
Director of Strategy, Culture and Education |
Hein Scheffer | 0-2.5 | NIL | 25-30 | NIL | 405 | 18 | 435 | NIL |
*Tom Abell opted out of the NHS pension scheme and is not covered by the NHS pension arrangements during the reporting period.
**Dr Simon Walsh was not covered by the NHS pension arrangements during the reporting period. The strategic planning director was engaged at no cost from NHS England as such EEAST makes no NHS pension contribution.
Juliet Beal was not covered by the NHS Pension arrangements during the reporting period.
As non-executive members do not receive pensionable remuneration, there are no entries in respect of pensions for non-executive members.
Cash equivalent transfer values
A cash equivalent transfer value (CETV) is the actuarially assessed capital value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the member’s accrued benefits and any contingent spouse’s (or other allowable beneficiary's) pension payable from the scheme. CETVs are calculated in accordance with the Occupational Pension Schemes (Transfer Values) Regulations 2008.
CETV figures are calculated using the guidance on discount rates for calculating unfunded public service pension contribution rates that was extant at 31 March 2023. HM Treasury published updated guidance on 27 April 2023; this guidance will be used in the calculation of 2023 to 24 CETV figures.
Real increase in CETV
This reflects the increase in CETV effectively funded by the employer. It takes account of the increase in accrued pension due to inflation, the value of any benefits transferred from another scheme or arrangement, and uses common market valuation factors for the start and end of the period.
Fair Pay Disclosures
| 2022/23 | 2021/22 | |||
| Highest paid director | Employees of the Trust | Highest paid director | Employees of the Trust | |
| Salary and allowances | 0.0% | 3.4% | -7.4% | 7.7% |
| Performance | 0.0% | 0.0% | 0.0% | 0.0% |
The calculation of highest paid director salary and allowances is based on the mid-point of the band for each of salary, and performance pay and bonuses payable.
The calculation of employees of the Trust for salary and allowances is the total for all employees on an annualised basis, excluding the highest paid director, divided by the FTE number of employees (also excluding the highest paid director).
There is no change to the highest paid director, being the chief executive officer, as compared to 2021/22. These fair pay disclosures are prepared using remuneration on a full time equivalent and annualised basis to ensure comparability which would otherwise be lost due to distortion of pay if a member of staff represented a whole unit irrespective of hours worked, and changes arising from employee turnover which could lead to changes which do not reflect changes in pay policy.
The change in the average salary of employees as a whole at the Trust is attributable to the effects of the 2022/23 NHS pay award details of which are contained in the NHS Employers' pay advisory notice 02/2022, which had the effect of increasing pay in most salary bands for substantive staff under agenda for change by £1,400.
Agency and consultancy staff are included on the basis of those occupying a vacant post as at 31st March 2023. These agency costs are annualised based on the expenditure on that individual in the week ending 31st March 2023.
In the prior year being 2021/22 there was also no change to the highest paid director, being the chief executive officer, as compared to 2020/21. The reason for the reduction in highest paid director pay in 2021/22 compared to 2020/21 related to the timing of payment received for contractual lieu of notice pay as reflected in the 2020/21 pay.
In 2021/22 the change in the average salary of employees as a whole at the Trust is attributable to the effects of the 2021/22 NHS pay award of 3%, and the receipt of pay during 2021/22 under the collective agreed framework in relation to annual leave payments agreed in March 2021 covering the period 1 April 2019 to 31 March 2021. Pay increases arising from the national pay award ratified at NHS Staff Council on 27 June 2018, changed the composition of salaries, and the annual increment drift of staff pay as salaries move up the pay scale annually.
Pay ratios
NHS Trusts are required to disclose the relationship between the total remuneration of the highest-paid director in their organisation against the 25th, median and 75th percentile of remuneration of the organisations' workforce. Total remuneration of the employee at the 25th percentile, median and 75th percentile is further broken down to disclose salary component.
The banded remuneration of the highest-paid director in the organisation in the financial year 2022-23 was £185-190k, (2021/22: £185-190k). The relationship to the remuneration of the organisations workforce is disclosed in the table below. The midpoint of the highest paid director's disclosed remuneration range of £185-190k is used for the ratio calculations. This banding is 5.08 time (2021/22: 5.31 times) the median remuneration of the workforce, which was £36,893 (2021/22: £35,310).
There is no change to the highest paid director, being the chief executive officer, as compared to 2021/22.
| 2022/23 | 25th Percentile | Median | 75th percentile |
| Total remuneration (£) | 28,105 | 36,893 | 48,415 |
| Salary component of total remuneration (£) | 28,105 | 36,893 | 48,415 |
| Pay ratio information | 6.67 | 5.08 | 3.87 |
| 2021/22 | 25th Percentile | Median | 75th percentile |
| Total remuneration (£) | 26,455 | 35,310 | 47,563 |
| Salary component of total remuneration (£) | 26,455 | 35,310 | 47,563 |
| Pay ratio information | 7.09 | 5.31 | 3.94 |
In 2022/23 nil (2021/22 nil) employees received remuneration in excess of the highest paid director. Remuneration ranged from £11k - £185k (2021/22: £7k to £189k). Total remuneration includes salary, non-consolidated performance-related pay, benefits-in-kind, but not severance payments. It does not include employer pension contributions and the cash equivalent transfer value of pensions.
Median salary has increased by 4.5% from 2021/22 to 2022/23. The change in the median salary value is attributable to the effects of the 2022/23 NHS pay award details of which are contained in the NHS Employers' Pay Advisory notice 02/2022, which had the effect of increasing pay in most salary bands for substantive staff under agenda for change by £1,400.
Agency and consultancy staff are included on the basis of those occupying a vacant post as at 31st March 2023. These agency costs are annualised based on the expenditure on that individual in the week ending 31st March 2023.
Senior managers
| Number employed | ||
| 2022-23 | 2021-22 | |
| Executive directors | 10 | 11 |
| Agenda for Change (AfC) band 9 | - | - |
| Secondment at nil cost to the Trust | 1 | 1 |
| Total | 11 | 12 |
The number of senior managers listed above by pay band, include individuals who occupied a senior manager post for all or part of the financial year. The strategic planning director has been seconded at nil cost to the Trust from NHS England.
The senior managers in this note are included within the remuneration note.
Staff numbers
| 2022-23 | 2021-22 | |||
| Permanent number | Other number | Total number | Total number | |
| Average staff numbers | ||||
| Medical and dental | 1 | - | 1 | 1 |
| Ambulance staff | 2,612 | 23 | 2,635 | 2,532 |
| Administration and estates | 786 | 36 | 822 | 826 |
| Healthcare assistants and other support staff | 2,001 | 145 | 2,146 | 2,322 |
| Nursing, midwifery and health visiting staff | 24 | - | 24 | 22 |
| Nursing, midwifery and health visiting learners | - | - | - | - |
| Scientific, therapeutic and technical staff | 1 | - | 1 | 1 |
| Healthcare science staff | - | - | - | - |
| Social care staff | - | - | - | - |
| Other | - | 52 | 52 | 89 |
| Total average numbers | 5,425 | 256 | 5,681 | 5,793 |
Of the above - staff engaged on capital projects.
| 2022-23 | 2021-22 | |||||
|---|---|---|---|---|---|---|
| Permanently employed £000s | Other | Total | Permanently employed £000s | Other | Total | |
| Salaries and wages | 235,900 | - | 235,900 | 218,842 | - | 218,842 |
| Social security costs | 26,176 | - | 26,176 | 23,182 | - | 23,182 |
| Apprenticeship Levy costs | 1,164 | - | 1,164 | 1,100 | - | 1,100 |
| Employer Contributions to NHS BSA - Pensions Division | 39,672 | - | 39,672 | 38,449 | - | 38,449 |
| Other pension costs | - | - | - | - | ||
| Other employment benefits | - | - | - | - | ||
| Temporary staff | - | 8,716 | 8,716 | - | 9,532 | 9,532 |
| Total employee benefits | - | 8,716 | 311,628 | 9,532 | 291,105 | |
| Employee costs capitalised | - | - | - | - | - | - |
| 2022-23 | 2021-22 | |||||
|---|---|---|---|---|---|---|
| Total | Male | Female | Total | Male | Female | |
| All staff | 5,888 | 2,776 | 3,112 | 5,775 | 2,834 | 2,941 |
| Senior managers | 11 | 6 | 5 | 12 | 8 | 4 |
NHS Sickness Absence Figures for NHS 2022-23 Annual Report and Accounts
| Figures Converted by DH to Best Estimates of Required Data Items | Statistics Published by NHS Digital from ESR Data Warehouse | |||
|---|---|---|---|---|
| Average FTE 2022 | Adjusted FTE days lost to Cabinet Office definitions | FTE-days available | Average sick days per FTE | FTE-days recorded sickness absence |
| 5,444 | 120,757 | 1,986,988 | 22.2 | 195,894 |
Source: NHS Digital - Sickness Absence and Workforce
Publications - based on data from the ESR Data Warehouse
Period covered: January to December 2022
Data items: ESR does not hold details of the planned working/non-working days for employees so days lost and days available are reported based upon a 365-day year. For the Annual Report and Accounts the following figures are used:
The number of FTE-days available has been taken directly from ESR. This has been converted to FTE years in the first column by dividing by 365.
The number of FTE-days lost to sickness absence has been taken directly from ESR. The adjusted FTE days lost has been calculated by multiplying by 225/365 to give the cabinet office measure.
The average number of sick days per FTE has been estimated by dividing the FTE days lost by the FTE Days and multiplying by 225/365 to give the cabinet office measure. This figure is replicated on returns by dividing the adjusted FTE days lost by average FTE.
Staff turnover
| 2022-23 number | 2021-22 number | |
|---|---|---|
| Number of persons retired early on ill health grounds | 9 | 9 |
| £000s | £000s | |
| Total additional pensions liabilities accrued in the year | 514 | 665 |
Staff policies applied during the year:
Disability Policy
The East of England Ambulance Service is committed to supporting all staff and recognises that staff with disabilities, or those who may be developing a disability, may require additional support to enable them to remain in the workplace. As well as being an NHS employer of choice, the Trust is a ‘two ticks’ employer and has made a commitment not only to abide by the essential actions, but wherever operationally possible, to go beyond any statutory legal requirement to support staff who develop a disability to stay in the workplace.
Recruitment and Selection Policy
The recruitment and selection policy supports the employment and appropriate training for employees.
Learning and Development Policy
The learning and development policy supports the training, career development and promotion of disabled persons employed by the Trust.
Equality Diversity and Inclusion Policy
The Trust is pro-active in its work towards making diversity an integral part of the core business. It incorporates the principles of equality, diversity and human rights in employment, encouraging, valuing and actively promoting diversity, recognising the talent and potential across the population. Promoting equality of opportunity is in the best interests of the Trust, including recruitment and development of the best people for our jobs, and providing appropriate services meeting the diverse needs of our community.
Expenditure on consultancy
| 2022-23 | 2021-22 |
|---|---|
| £000s | £000s |
| 687 | 1,137 |
Compensation and exit packages
Reporting of other compensation schemes - exit packages 2022-23
| Exit package cost band (including any special payment element) | *Number of compulsory redundancies | *Cost of compulsory redundancies | Number of other departures agreed | Cost of other departures agreed | Total number of exit packages | Total cost of exit packages | Number of departures where special payments have been made | Cost of special payment element included in exit packages |
|---|---|---|---|---|---|---|---|---|
| WHOLE NUMBERS ONLY | £s | WHOLE NUMBERS ONLY | £s | WHOLE NUMBERS ONLY | £s | WHOLE NUMBERS ONLY | £s | |
| Less than £10,000 | 1 | 8,760 | 1 | 2,000 | 2 | 10,760 | 1 | 2,000 |
| £10,000 - £25,000 | 1 | 25,000 | 1 | 25,000 | 1 | 25,000 | ||
| £25,001 - £50,000 | 1 | 43,927 | 1 | 30,000 | 2 | 73,927 | 1 | 30,000 |
| £50,001 - £100,000 | ||||||||
| £100,001 - £150,000 | ||||||||
| £150,001 - £200,000 | ||||||||
| >£200,000 | ||||||||
| Total | 2 | 52,687 | 3 | 57,000 | 5 | 109,687 | 3 | 57,000 |
*Compulsory redundancies arise from the reorganisation of corporate positions during the year. Three special severance payments where HM Treasury approval has been received have occurred.
Reporting of other compensation schemes - exit packages 2021-22
| Exit package cost band (including any special payment element) | *Number of compulsory redundancies | *Cost of compulsory redundancies | Number of other departures agreed | Cost of other departures agreed | Total number of exit packages | Total cost of exit packages | Number of departures where special payments have been made | Cost of special payment element included in exit packages |
|---|---|---|---|---|---|---|---|---|
| WHOLE NUMBERS ONLY | £s | WHOLE NUMBERS ONLY | £s | WHOLE NUMBERS ONLY | £s | WHOLE NUMBERS ONLY | £s | |
| Less than £10,000 | ||||||||
| £10,000 - £25,000 | 1 | 19,100 | 1 | 19,100 | ||||
| £25,001 - £50,000 | ||||||||
| £50,001 - £100,000 | ||||||||
| £100,001 - £150,000 | 1 | 119,411 | 1 | 119,411 | ||||
| £150,001 - £200,000 | ||||||||
| >£200,000 | ||||||||
| Total | 2 | 138,511 | 0 | 0 | 2 | 138,511 | 0 | 0 |
*Compulsory redundancies arise from the reorganisation of corporate positions during the year. Three special severance payments where HM Treasury approval has been received have occurred.
Other Exit Packages 2022-23
| Other Exit packages - disclosures (Exclude Compulsory Redundancies) | Number of exit package agreements | Total value of agreements | 2021/22 number of exit package agreements | 2021/22 total value of agreements |
|---|---|---|---|---|
| Number | £000s | Number | £000s | |
| Voluntary redundancies including early retirement contractual costs | 0 | 0 | 0 | 0 |
| Early retirements in the efficiency of the service contractual costs | 0 | 0 | 0 | 0 |
| Contractual payments in lieu of notice | 0 | 0 | 0 | 0 |
| Exit payments following Employment Tribunals or court orders | 0 | 0 | 0 | 0 |
| Non contractual payments requiring HMT approval * | 3 | 57 | 0 | 0 |
| Total | 3 | 57 | 0 | 0 |
| Non-contractual payments requiring HMT approval made to individuals where the payment value was more than 12 months’ of their annual salary | 0 | 0 | 0 | 0 |
Note: * this includes any non-contractual severance payment following judicial mediation and amounts relating to non-contractual payments in lieu of notice.
Three special severance payments where HM Treasury approval has been received have occurred.
Off-Payroll Engagements Note
Table 1: Off-payroll engagements longer than six months
For all off-payroll engagements as of 31 March 2023, for more than £245 per day and that last longer than six months:
| Off-payroll engagements | Number |
|---|---|
| Number of existing engagements as of 31 March 2022 | 0 |
| Of which, the number that have existed: | |
| for less than one year at the time of reporting | 0 |
| for between one and two years at the time of reporting | 0 |
| for between two and three years at the time of reporting | 0 |
| for between three and four years at the time of reporting | 0 |
| for four or more years at the time of reporting | 0 |
Table 2: New Off-payroll engagements
For all new off-payroll engagements, or those that reached six months in duration, between 1 April 2022 and 31 March 2023, for more than £245 per day and that last for longer than six months:
| Off-payroll engagements | Number |
|---|---|
| Number of new engagements, or those that reached six months in duration, between 1 April | 0 |
| Of which, the number that have been: | |
| not subject to off-payroll legislation | 0 |
| subject to off-payroll legislation and determined as in-scope of IR35 | 0 |
| subject to off-payroll legislation and determined as out of scope of IR35 | 0 |
| of engagements reassessed for consistency /assurance purposes during the year | 0 |
| of engagements that saw a change to IR35 status following review | 0 |
Note: All existing off-payroll engagements have at some point been subject to a risk based assessment as to whether assurance needs to be sought that the individual is paying the right amount of tax and, where necessary, that assurance has been sought.
Table 3: Off-payroll board member/senior official engagements
For any off-payroll engagements of board members, and/or, senior officials with significant financial responsibility, between 1 April 2022 and 31 March 2023:
| Off-payroll engagements | Number |
|---|---|
| Number of off-payroll engagements of board members, and/or senior officers with significant financial responsibility, during the year | 0 |
| Number of individuals that have been deemed “board members, and/or senior officers with significant financial responsibility” during the financial year. This figure includes both off-payroll and on-payroll engagements* | 11 |
Note: *All individuals who occupied a board member position, for a period of time in the financial year, have been included in this figure.