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Setting executive pay

Key considerations for trustees setting pay for the CEO and other leaders in an academy trust.

Guidance
26/06/2025
people in meeting looking across each other at table

Setting the framework for the pay of the CEO and other executive leaders in an academy trust is a key responsibility of the trust board. Trustees must ensure that the pay and leadership structure is in keeping with the Nolan principles, is affordable and sustainable in the long term, and is appropriate for the level of responsibility undertaken.

It is also important for the trust board to聽think about the sector overall, and the position of academy trusts as charities. While trusts need to reward leaders properly, this guidance starts from the premise that trustees must remain conscious that salaries are paid from public money.

Trust boards must set out their approach to determining executive pay in an agreed pay policy.

This guidance covers:

  • requirements for setting pay
  • what the DfE says about setting executive pay
  • how trust boards set pay
  • pay benchmarking suggestions
  • recruitment and retention considerations
  • pensions, bonuses and other benefits
  • questions for trustees to consider when setting pay

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