Public bodies have been warned that excessive pay and perks for top managers could lead to punitive action by ministers. The Herald revealed last week that the former finance director at Scottish Enterprise, Ian Carmichael, had 380,600 added to his pension fund when he took early retirement in March. The chief executive of the quango, Jack Perry, received a pay rise last year of more than 15% and his deputy Lena Wilson had her pay increased by almost 27% at a time when both Westminster and Holyrood ministers are calling for public sector pay restraint.
Both of their packages included performance bonuses as well as car allowances and other benefits, the kind of perks mentioned in guidance sent out to public bodies by Finance Secretary John Swinney. A spokesman said: "The Scottish Government has clarified the existing arrangements on Scottish public sector pay policy in the public interest. "In particular, the policy sets out that pay awards must not exceed limits set by ministers.
If they do, then systems are in place to deal with the situation and, if necessary provide for clawback of funding." The documents says that ministers will have the power to approve or reject "contentious" increases in pay or perks, with any bonus payments having to be agreed by Mr Swinney. On perks the rules say things such as cars and health insurance will only be agreed in "special circumstances", adding: "It should be noted that there is a presumption against providing private health benefits, life cover or a company car and any proposal must first be approved by cabinet secretaries/minister.
" The document adds: "Significant breaches of this policy could result in punitive action being taken, such as capping of future pay increases or a governance review of the body." The St Andrew's House spokesman said: "These documents are published to ensure the position is absolutely clear for public bodies. "The Scottish Government is keen to ensure that all public bodies deliver the best possible value for taxpayers' money.
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