The largest trading charity in the UK, Nuffield Health, paid its chief executive over £1.2m last year, more than double the year before.
Steve Gray earned between £1.22m and £1.23m in 2021, according to the charity’s annual report for that year, up from between £570,000 and £580,000 in 2020. It is also around 30% more than he was paid in 2019 (£930,000 to £940,000).
Nuffield Health said the increase was due to Gray receiving a bonus for meeting “rigorously-defined business targets”.
The charity’s overall income recovered to £995.6m in 2021, after dropping to £779.9m the year before.
Charity: ‘Our salaries must be competitive’
A spokesperson for the charity said: “Nuffield Health is a large organisation with more than 16,400 staff operating in a competitive and complex sector. Our salaries must be competitive to ensure we attract the right people to lead the organisation.
“The board of trustees’ executive remuneration and succession committee conducts an annual review of executive salaries and every two years reviews a detailed market benchmarking survey undertaken by an independent consultant. This ensures we are paying in-line with market values.
“Steve’s total remuneration includes a bonus if he meets rigorously-defined business targets, a standard practice across organisations and businesses of our size and complexity. Last year’s significant business performance and recovery from the impact of the Covid-19 pandemic means that Steve qualified for a bonus for 2021.
“This accounts for the increase in his remuneration and reflects the progress the business made last year under his leadership.”
In his introduction to the charity’s latest accounts, Gray said the organisation had exceeded its social return on investment and financial EBITDA targets.
Income almost up to £1bn
Nuffield Health’s overall annual income increased by more than a quarter year-on-year to £995.6m, according to the report.
This is also higher than 2019, when the charity’s income was 993.3m.
The increase in 2021 was partially driven by the charity’s hospital services, income for which increased to £715.7m from £557.2m the year before.
Income from its wellbeing services also rose to £215.6m from £172.9m in 2020.
Furlough grant income, however, reduced from £44.8m in 2020 to £19.4m in 2021.
Meanwhile, the charity’s total expenditure grew by 15% year-on-year to £975.8m in 2021, due to increases in staff costs, partnership fees and consumable and supply costs.
Nuffield Health’s overall staff costs increased from £372.3m to £400.2m in the year.
