Title

PAY

Return on investment is the real issue

If chief executives’ impact in local government is measured using clear metrics then perhaps the TaxPayers’ Alliance would pipe down, says Julie Towers.

(c) LALAKA / Shutterstock.com.

(c) LALAKA / Shutterstock.com.

It was good to see leaders defending six figure salaries in local government in the recent article in The MJ; but I was disappointed that it was still even an issue. 

After the initial TaxPayers' Alliance loud lobby, I thought we'd moved on and were recognising the importance of having reflective and appropriate reward.  I think local government fully understands the value and return on investment good leaders make. I think most authorities recognise that in real terms the chief executive salary has not risen in line with inflation or the wider market for years – many chief executive salaries are broadly at the same level as a decade ago and yet the job is in my view and the chief executives I talk to considerably tougher and complex than it was then.

But the article did remind me once again of the impact one person makes on an organisation.  I've always been fascinated by how in large, complex organisations the chief executive and directors can make such an impact through their leadership on a workforce of hundreds indeed thousands. And it's when you start to think about the scale of what good leadership delivers that you realise the 1,092 people earning over £150,000 in local government are probably delivering a massive return on the investment.

In the private sector the measure of both the salary and the often-significant bonus paid to leaders would be directly related to business performance, profit, shareholder value and dividends. If we measured (I hope authorities do) their CEX impact using clear metrics – transformation savings, efficiencies, staff and resident satisfaction, balanced budget, generation of commercial revenue etc, then perhaps the TaxPayers' Alliance would pipe down, and we'd see a different headline! ‘Chief Executives in Local Government delivering x 10+ return on investment!'

Julie Towers, director at Penna

www.penna.com

julie.towers@penna.com

 

PAY

Reorganisation repercussions

By Paul Marinko | 23 July 2026

Following the latest round of local government reorganisation last week, ministers claim the new unitaries will boost growth and strengthen our cities but no...

PAY

EXCLUSIVE: Reorganisation shake-up

By Paul Marinko | 23 July 2026

Recruitment specialist outlines LGR impact on jobs as scramble for newly-created roles likely to ‘flood the market’

PAY

Making local growth happen

By David Godfrey | 23 July 2026

As Andy Burnham takes office, David Godfrey considers the further steps the Prime Minister could take to secure his commitment to local economic growth.

PAY

Stronger together

By Rebecca Davis | 23 July 2026

Rebecca Davis outlines why collaboration is local government’s greatest strength – And how regional owned and led organisations have never been more important.

Popular articles by Julie Towers