CIPD – tale of a fake fatcat
Obscene salary and bonus
Well hasn't this cat just got the cream! Ever heard of Jackie Orme? She’s the CEO of the CIPD (a charity). Her salary for 2009 was a whopping £405,000 which includes a £57,000 bonus! You don’t want to know about the pension arrangements – they’re obscene. (The average salary in the charity sector is a reasonable £57,264.)
What is really obscene is the stunning drop in revenues at the CIPD? The new CEO has managed to oversee an organisation in decline. Its commercial services income has dropped by several million and its operating profit halved (this means that the money covenanted to the charity has halved). At the same time salary costs have risen by 10%. (Interestingly the website breaks the law on presenting salary bands missing out the 100k-110k band (see p19)). Maybe Jackie hasn't read the CIPD report published this month called Transforming Public Pay and Pensions with its section on Ensuring reward practices are fit for purpose.
One rule for Orme, another for you
On top of this she has been slated for making 41 redundancies in April 2009 and implementing a pay and bonus freeze, while trousering her massive bonus. In effect she was paid this bonus to produce a report on the future of HR – not that difficult. I have yet to hear of one member that has actually read the damn thing. She was also open to the charge of commercial favouritism by purchasing her pet agency Bridge Partnership (they go way back to when she worked with them at Pepsico).
Inexperienced, unknown player
Way back it was predicted in Personnel Today that her lack of experience and business expertise would be handicap, “several senior HR figures have warned that her low profile and lack of wider business experience may prevent Orme from becoming the influential voice that the role demands”. The head of HR at EDF Energy stated at the time, "The fact that she’s an unknown player means you’ve got to question her credentials in terms of what she stands for”. So it has proved.
Steel, crisps and fizzy pop
So who is Jackie Orme? Well she spent her early career in the Welsh Steel industry, such a roaring success that there is, now, no steel industry in Wales. Then she was then HR Director for Walkers Crisps doing her bit for child nutrition, then Pepsico,well Pepsico UK and Ireland, that purveyor of copycat coke.
She’s also a listed on the CIPD website as a Director of a real charity ‘Shelter’. Difference – that’s a real charity of a similar size, and the last accounts showed that the CEO earns less than a quarter of her salary. Weirdly, Shelter does not list her as a trustee, as she resigned from this post over a year ago on June 11 2009. Is she also claiming to be something she’s not?
Charity in name only
The problem here, is that the CIPD is a charity in name only. What charitable good does it really do? Run courses? Publish dull books? Produce second rate research? It’s also relatively small organisation. It has around 250 employees, many part time, so where’s the justification for these astronomical salaries. In the end Jackie Orme’s just another fake fatcat milking the system. I’m looking forward to the 2010 Annual Report – no doubt Jackie will have received some whopping reward while the organisation reports further decline.