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accordance with Non-Executive remuneration levels for
NHS trusts. Six Executive Directors were appointed by
the outgoing Liverpool Community Health NHS Trust
Board’s Remuneration Committee; these roles were
not separately remunerated during this time over and
above the salaries paid by Alder Hey. The Alder Hey
Remuneration Committee subsequently awarded a
small discretionary payment to five Executive Directors
(excluding the Chief Executive) in recognition of the dual
roles they performed in delivering the management
contract.

During 2017/18 there were a total of 13 voting Board
Directors in post across the period. Of these, eight
individuals claimed £8,147 in expenses; for 2016/17 the
figures were 14 directors claiming £10,498 in expenses.
In the year there were 27 governors in office, seven of
whom received £2,136 in expenses; whereas in 2016/17
seven governors claimed £3,310.36.

The HM Treasury FReM requires disclosure of the the responsibilities carried and benchmarks favourably
median remuneration of the reporting entity’s staff and with comparable organisations.
the ratio between this and the mid-point of the banded
remuneration of the highest paid director (as defined The Trust’s remuneration policy applies to Executive
as a senior manager in paragraph 2.33 and paragraphs Directors and associate Directors, i.e. non-voting
2.49 to 2.53), whether or not this is the Accounting Executives and is based upon open, transparent
Officer or Chief Executive. The calculation is based on and proportionate pay decisions. All pay decisions
full-time equivalent staff of the reporting entity at the are based on market intelligence and are designed
reporting period end date on an annualised basis. to be capable of responding flexibly to recruitment
imperatives to secure high calibre people. When setting
The remuneration of the median salary and multiple to levels of remuneration, the Trust’s Nominations and
the highest paid employee of the Trust for 2017/18 and Remuneration Committees also take into account the
the prior year comparative is provided below: remuneration policies and practices applicable to our
other employees, along with any guidance received
from the sector regulator and the Department of
2017/18 2016/17 Health. The Committee also receives professional

independent reports based on objective evidence
Band of Highest Paid of pay benchmarking across a range of industry
Director (Bands of £5,000) £170-175 £155-160 comparators. The conclusion reached in professional
independent reports is that ‘weightings accredited to
Median Total Remuneration £30,682 £30,547 the various posts in relation to market comparisons had
resulted in remuneration that is in line with current pay
Ratio 5.6 5.2 practice.’ The way in which the Committee operates is
subject to audit scrutiny. The work of the Committees is
subject to an independent level of scrutiny by the Audit
Committee and this scrutiny can be exercised at any
The range of staff remuneration was £994 to £258,670
time.
(2016/17: £544 to £338,653).
The remuneration and retirement benefits of all
There are two senior managers who during the year
directors, together with all other relevant disclosures are
were paid more than £150,000 (this figure being the set out below.
threshold used in the Civil Service for approval by the
Chief Secretary to the Treasury as per Cabinet Office
Signed:
guidance and considered by NHS Improvement as an
appropriate benchmark for NHS foundation trusts).
Louise Shepherd
One of these was the Chief Executive, the other is the
Trust’s Development Director. The Trust is satisfied that LOUISE SHEPHERD CBE
for both roles the level of remuneration is reasonable for Chief Executive
22nd May 2018

Alder Hey Children’s NHS Foundation Trust 44 Annual Report & Accounts 2017/18