The Welsh Government has signalled a change in its policy on the payment of board members of RSLs. A revised circular on Payments and Benefits (updating the 05/10 circular) is promised shortly which will confirm the change.
It is not yet clear whether the Welsh Government intends to impose an upper limit on remuneration levels.
What RSLs must ensure, however, is that:
- Their constitutions permit the remuneration of board members (not just the reimbursement of expenses); and
- Any remuneration policy adheres to Community Housing Cymru’s Code of Governance.
The Code requires RSLs to ensure that:
- It has in place mechanisms for establishing remuneration levels that are independent of the board (such as an independent adviser and /or a remuneration committee and the use of published guidance or other information which indicates industry norms);
- remuneration levels are proportionate to the RSL’s size, complexity and resources;
- where a remuneration policy is in place, payment is linked to the carrying out of specified duties against which performance is reviewed; and
- remuneration is fully disclosed on a named basis.
Please contact Jonathan Jarvis or Andrew Cowan for more details.
