Sir Stephen Bubb, chief executive of Acevo, has launched a strong riposte against Charity Commission chair William Shawcross who today has said the leaders of some of the UK's biggest charities risk bringing the sector into “disrepute” by taking large salaries while income is falling.

In a bold front-page splash today, the Daily Telegraph criticises 30 senior executives of 14 charities, which make up the Disasters Emergency Committee, for taking salaries of more than £100,000 while revenues and donations fall.

In response, Shawcross tells the Telegraph: “It’s not for the Commission to tell charities how much they should pay their executives. That is a matter for their trustees,” he said. “However, in these difficult times, when many charities are experiencing shortfalls, trustees should consider whether very high salaries are really appropriate, and fair to both the donors and the taxpayers who fund charities.

“Disproportionate salaries risk bringing organisations and the wider charitable world into disrepute.”

The Telegraph has analysed the salaries of chief executives making up the Disasters Emergency Committee, and in some case finds salaries have risen, despite a fall in donations and revenues. 

Sir Stephen: dislike for international charities

Conservative MP Priti Patel helped compile the figures. Patel is also a member of the Public Administration Select Committee which appointed Shawcross as chair of the Charity Commission last year. A number of MPs on the Committee felt Shawcross was too political a figure to lead the Charity Commission impartially.

Sir Stephen has today suggested political motives behind Patel’s comments in the press. Writing in his blog, he says: “Let's just notice who was one of those behind this story in the Telegraph: Priti Patel, Tory MP.

“So let's be clear on what is happening. Many MPs on the right hate effective charities who campaign. They particularly dislike international charities who have been so effective in raising the concerns of the world's poor.”

Sir Stephen calls Shawcross’ comments today a “disgraceful distraction” highlighting that charity sector chief executives earn, on average, £58,000. Shawcross earns a £50,000-a-year salary for two days a week, in his role as chair of the Charity Commission.

Sir Stephen continues that he is particularly angry that Shawcross risks giving the impression that all charities pay £100,000 salaries.

“So in effect Mr Shawcross risks bringing the sector into disrepute by this attack,” he writes. “Mr Shawcross should be defending the sector not undermining it.”

Gulf in public perception of charities 

Joe Saxton from nfpSynergy, which does regular surveys on the public’s views on charity chief executives' pay and charity administration costs, said it was essential that the charity sector worked out better ways of defending the wages it paid.

“Our research shows a sobering gulf in how the public view charities in the 21st century and the way that charities operate. If we don’t narrow this gulf there will be problems.”

Saxton also said that there was nothing unusual about the salary of chief executives in the international development sector compared with others; “it just happened to be chosen by the Telegraph”.

Transparency an issue

He said nfpSynergy would soon be releasing research to show how charity chief executive salaries varied in different charity sectors. “I’d expect to see underpaid chief executives in charities which rely heavily on voluntary donations, and higher salaries in those that don’t,” he said.

Sir Stuart Etherington, chief executive of NCVO, was tempered in his view on Shawcross’ comments today, saying the sector needed to be transparent about senior staff salaries.

“Charity trustees should set remuneration using a clear process, taking into account the demands of the job and salaries of comparable roles, and charities should be transparent about senior staff salaries," he said. "The Charity Commission should confine itself to ensuring such a process has been followed.”

Charity Chief Executives Survey exclusive preview

Charity Finance is attempting to glean the salaries of chief executives in the Charity 100 Index for its Charity Chief Executives Survey 2013. The full survey will be released in September.  Charities must publish the salary of its highest-paid member of staff in their annual accounts.  We’ve found that at 11 of the largest-100 charities their highest-paid member of staff, probably the chief executive, is paid under £100,000. Ten charities pay their highest-paid member of staff over £250,000 a year. For the full 100 charities, on average the highest-paid member is paid £165,161 compared with £166,048 in 2011. For more on the income range of the largest-100 charities click here.

For more on the debate around charity chief executive pay sparked by Shawcross follow our live rolling blog today.

Read Fundraising editor, Celina Ribeiro's, blog on the Telegraph story 'I agree with William Shawcross: Charity pay should be proportionate'. 

This story had incorrectly stated that William Shawcross had criticised the "boardroom excess" of charity executive pay and that he got £100,000 a year for his role.