Thursday, 24 September 2009

CIPD staff get pay freeze, CEO gets bonus. Hmmm!

As the major rival to the CIPD People Management journal, it will have been a source of glee to the Personnel Today editors to be able to report that although the CIPD has banned discretionary bonuses for employees this year because the organisation did not hit its financial targets, and froze base pay for the majority of its staff, it has emerged that CIPD Chief Executive Jackie Orme has received a bonus to top up her £300,000 per year salary.

The pay freeze was implemented to minimise the need for redundancies and to help finance a freeze in 2009 membership fees.

A spokesman for the CIPD told Personnel Today that the CEO’s remuneration package was smaller than that of her predecessor and that her performance was assessed against a scorecard of membership, financial, service development and strategic measures and targets. The launch of the CIPD HR Profession Map was highlighted as a major achievement over the last year.

CIPD branded unfair as chief gets bonus despite pay freeze
  • Does the payment of a bonus to the CIPD CEO make it difficult for the CIPD to objectively enter the ongoing debate over CEO bonuses?
  • Read Jackie Orme bonus row: CIPD official statement. Does this change the way you responded to the last question?


  1. ‘Pot’ and ‘Kettle’ is the first thing that springs to mind.

    Regardless of the relative position of the packages between current and previous incumbents of the role, there is a principle here which it would seem hard to get around. And therefore whilst I don’t think this ‘revelation’ impacts on the ability of the CIPD to report impartially on the debate, it would have an impact if they wish to take a moral stance against the bonus culture.

    Whether its £300k or £3M the salary paid is far beyond the wildest dreams of us mere mortals (would be interested to see what Hay points we’re looking at here) so any arguments about the relative merits of bonuses paid (whatever the value) do tend to fall on stony ground.

    Best go – off to spend my bonus (whoops).


  2. EBTG (!) I totally agree that this does somewhat limit the ability of the CIPD to comment impartially on the issue of the bonus culture. I'm also sure that Personnel Today will be smirking while Orme squirms!