Remuneration and Staff Report
Annual Report and Accounts 2022-23
Remuneration and Staff Report
Remuneration and Staff Report
This shows our remuneration policy for directors and reports on how it has been implemented, along with the amounts awarded to directors. There is also information on staffing structures, staff composition, policies, details on staff numbers and staff related expenditure.
Remuneration report
Remuneration policy
The remuneration of senior civil servants is set in accordance with the rules set out in chapter 7.1, Annex A of the Civil Service Management Code and in conjunction with independent advice from the Senior Salaries Review Body (SSRB). In reaching its recommendations, the SSRB is to have regard to the following considerations:
- The need to recruit, retain, motivate and, where relevant, promote suitably able and qualified people to exercise their different responsibilities.
- Regional / local variations in labour markets and their effects on the recruitment, retention and, where relevant, promotion of staff.
- Government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services.
- The funds available to departments as set out in the Government's departmental expenditure limits.
- The Government's inflation target.
Performance-based pay awards are based on an assessment of performance against objectives agreed between the individual and line manager at the start of the reporting year. Performance will also have an effect on any bonus element awarded. In line with Scottish Public Sector Pay Policy, there will be no non-consolidated performance payments.
The remuneration of staff below senior civil service level is determined by the Scottish Government. In determining policy, account is taken of the need for pay to be set at a level, which will ensure the recruitment, retention, and motivation of staff. Also considered is the Government's policy on the Civil Service and public sector pay and the need to observe public spending controls.
Service contracts
The Constitutional Reform and Governance Act 2010 requires Civil Service appointments to be made on merit on the basis of fair and open competition but also includes the circumstances when appointments may otherwise be made.
Unless otherwise stated below, the officials covered by this report hold appointments, which are open-ended. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme.
Further information about the work of the Civil Service Commissioners can be found at Home - Civil Service Commission (independent.gov.uk)
Whilst Transport Scotland does not have a Board with non-executive directors, the Audit and Risk Committee has three external members to ensure independent oversight and challenge: John Matheson - appointed as chair in July 2017; Graeme Dickson - appointed on 7 March 2021; and Lesley MacLeod - appointed on 1 August 2021.
Remuneration group
Remuneration for Transport Scotland's senior civil servants is considered by the Scottish Government's Remuneration Group. This Remuneration Group has six members, two of whom are non-executive Directors.
Their remit is to consider:
- Annual pay proposals for chief executives and board members and make recommendations to Ministers.
- Annual guidelines for flat rate increases for chief executives and senior civil servants and consider the Public Sector Pay policies which will apply for the annual pay round and make recommendations to Ministers.
- Pay remits which look at pay proposals for public bodies in Scotland
The Remuneration Group will, as a minimum, report annually to the Scottish Government Strategic Board.
The following section of the Remuneration Report pertaining to salaries and pensions is subject to audit.
Directors' remuneration (Salary, benefits in kind and pensions)
The single total figure of remuneration, comprising the salary, the value of any bonuses or taxable benefits in kind and the pension benefits of the directors for the year 2022-23, along with comparative figures are shown in the table below.
| Director | Salary | Bonus | Benefits in Kind | Pension Benefits | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2022-23 (£000) | 2021-22 (£000) | 2022-23 | 2021-22 | 2022-23 | 2021-22 | 2022-23 (£000) | 2021-22 (£000) | 2022-23 (£000) | 2021-22 (£000) | |
| Fiona Brown (Transport Strategy & Analysis) | 75-80 | 20-25 | - | - | - | - | 32 | 7 | 110-115 | 30-35 |
| Hugh Gillies (Chief Executive until 3rd July 2022) | 85-90 | 85-90 | - | - | - | - | 0 | 45 | 80-85 | 125-130 |
| Stuart Greig (Low Carbon Economy until 10 March 2023) | 80-85 | 75-80 | - | - | - | - | 32 | 31 | 110-115 | 105-110 |
| Alison Irvine (Chief Executive from 20 March 2023) | 0-5 | 55-60 | - | - | - | - | 1 | 22 | 0-5 | 75-80 |
| Stewart Leggett (Roads) | 80-85 | 25-30 | - | - | - | - | 22 | 4 | 105-110 | 30-35 |
| Roddy Macdonald (Ferries from 19 December 2022) | 25-30 | 0 | - | - | - | - | 0 | 0 | 15-20 | 0 |
| Frances Pacitti (Aviation, Maritime, Freight & Canals until 17 March 2023) | 80-85 | 80-85 | - | - | - | - | 32 | 31 | 110-115 | 110-115 |
| Bill Reeve (Rail) | 110-115 | 110-115 | - | - | - | - | 0 | 0 | 15-20 | 55-60 |
| Michelle Quinn (Chief Executive from 4th July 2022 – 19 March 2023) | 70-75 | 0-5 | - | - | - | - | 32 | 1 | 105-110 | 5-10 |
| Lawrence Shackman (Major Projects) | 80-85 | 40-45 | - | - | - | - | 16 | 9 | 95-100 | 50-55 |
| Bettina Sizeland (Bus Accessibility and Active Travel) | 85-90 | 5-10 | - | - | - | - | 23 | 3 | 105-110 | 10-15 |
| Kerry Twyman (Finance and Corporate Services) | 95-100 | 75-80 | - | - | - | - | 26 | 44 | 125-130 | 120-125 |
Single total figure of remuneration
The value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by twenty, less the contributions made by the individual. The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights.
Hugh Gillies left the post of interim Chief Executive on 3 July 2022 and returned to a director post in Transport Scotland.
Stuart Greig left post as Director of Low Carbon Transport Economy on 19 March 2023. The £80-85,000 for year 2022-23 represents salary to leaving date. 2022-23 full year equivalent banding would be £80-85,000.
Alison Irvine joined TS as interim Chief Executive on 20 March 2023. The £0k-£5k for year 2022-23 represents salary from joining date to 31 March 2023. 2022-23 full year equivalent banding would be £80-85,000.
Roddy Macdonald joined TS as Director of Ferries on 19 December 2022. The £25k-£30k for year 2022-23 represents salary from joining date to 31 March 2023. 2022-23 full year equivalent banding would be £80-85,000.
Frances Pacitti left post as Director of Aviation, Maritime, Freight and Canals on 19 March 2023. The £80-85,000 for year 2022-23 represents salary to leaving date. 2022-23 full year equivalent banding would be £80-85,000.
Michelle Quinn joined TS as interim Chief Executive on 4 July 2022 and left post on 19 March 2023. The £70-75,000 for 2022-23 represents salary from joining date to 31 March 2021. 2020-2021 full year equivalent banding £95,000 to 100,000.
Salary
Salary and allowances cover both pensionable and non-pensionable amounts and include gross salaries; overtime; recruitment and retention allowances; private office allowances or other allowances to the extent that they are subject to UK taxation. This total remuneration is shown in the figures in the table on the previous page. It does not include employers' pension contributions or amounts which are a reimbursement of expenses directly incurred in the performance of an individual's duties or employer's national insurance.
Where a Director has joined or left Transport Scotland during the year, their salary reflects only that which they received whilst a member of the senior management team. Where an individual has been a member of the senior management team for only part of the year, but they have been employed by the Agency throughout the year, their annual salary has been reported on a 'days served' basis as well as the full year equivalent salary.
Any amounts payable on early termination of a contract will be in accordance with the individual's circumstances.
Fees
External members of the Audit and Risk Committee are entitled to receive fees for regular attendance at Audit and Risk Committee meetings. External members' expenses incurred in attending these meetings are also reimbursed.
The fees which the external members of the Audit and Risk Committee were entitled to for 2022-23 are as follows:
- John Matheson £243 daily rate
- Graeme Dickson £243 daily rate
- Lesley Macleod £243 daily rate
This is in line with Scottish Government remuneration of external members.
Pay multiples
There was an extension to the Fair Pay Disclosure in 2021-22. In addition to the median pay ratio, the relationship between the remuneration of the highest paid director in the organisation and the median remuneration of the organisation's workforce, we must also now disclose:
The percentage changes for the highest paid director and the workforce as a whole, and
The ratio of the highest paid director to the interquartile ranges 25% and 75% within the workforce.
The calculations include directly employed staff paid through SG Core payroll and cover both permanent staff and those on fixed term contracts. They also include Agency and other Temporary employees who are covering staff vacancies. They do not include consultant's costs.
The full year equivalent banded remuneration of the highest paid director was £110-115,000 (2021-22: £110-115,000). Please note the below year-to-year comparisons in relation to the highest paid director.
- This was 2.5 times (2021-22: 2.7 times) the median remuneration of the workforce, which was £44,765 (2021-22: £41,862).
- This was 3.4 times (2021-22: 3.6) the 25th percentile of the workforce, which was £33,120 (2021-22 £31,542).
- This was 1.9 times (2021-22: 2.1) the 75th percentile of the workforce, which was £57,722 (2021-22: £53,476).
It can be seen that the Highest Paid Director pay ratio to all compared ranges has reduced which is attributable to an increase in the pay and benefits of the workforce as a whole. We believe the median pay ratio for 2022-23 is consistent with the pay, reward, and progression policies of the workforce as a whole. These costs relate wholly to salaries and the ratios are in line with the general pay policy. A summary of the information highlighted in the table below.
| Year | Midpoint £ | Median £ | Ratio | 25 P / Tile £ | Ratio | 75 P / Tile £ | Ratio |
|---|---|---|---|---|---|---|---|
| 2022-23 | 112,500 | 44,765 | 2.5 | 33,120 | 3.4 | 57,722 | 1.9 |
| 2021-22 | 112,500 | 41,862 | 2.7 | 31,542 | 3.6 | 53,476 | 2.1 |
Changes in year
The average percentage change of 11.90%, as can be seen in the tables below, across all employees as a whole, is a consequence of an increased number of full time equivalents (FTE) in year and the impact of incremental and inflationary pay movements.
In 2022-23, no employee received remuneration in excess of the highest paid director (2021-22: None). Remuneration across Transport Scotland ranged from £22,000 to £115,500 (2021-22: £21,000 to 111,000).
Total remuneration includes salary, non-consolidated performance related pay and benefits in kind. It does not include employer pension contributions and the cash equivalent transfer value of pensions.
| 2022-23 Midpoint £ | 2021-22 Midpoint £ | Percentage Change | |
|---|---|---|---|
| Highest-Paid Director | 112,500 | 112,500 | 0% |
| 2022-23 Total Salary £ | 2022-23 Average FTE | Average Salary per FTE | 2021-22 Total Salary £ | 2021-22 Average FTE | Average Salary per FTE | Average Percentage Change | |
|---|---|---|---|---|---|---|---|
| TS Employees | 27,758,001 | 499 | 55,616 | 24,334,873 | 489.6 | 49,704 | 11.90% |
Civil Service and other Compensation Scheme
Within Transport Scotland, no members of staff agreed departures under the Civil Service Compensation Scheme rules in 2022-23. There were no members of staff who agreed departures under the scheme in 2021-22.
Three members of staff retired on ill health grounds in 2022-23. (2021-22: none).
Pensions
Accrued pension represents the director's total future entitlement to benefits payable from the Civil Service pension schemes based on reckonable service on 31 March 2023. The accrued pension includes service prior to becoming a Director and / or service in other departments.
A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the members' accrued benefits and any contingent spouse's pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme.
The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.
The figures include the value of any pension benefit in another scheme or arrangement, which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.
The real increase in CETV quoted in the table below represents the increase that is funded by the employer. It does not include the increase in accrued pension due to inflation, or contributions paid by employees (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.
Transport Scotland's contributions to the scheme in respect of the Senior Management Team amounted to £273,249 for the year to 31 March 2023. The external members of the Audit and Risk Committee do not participate in the Civil Service pension scheme.
Further details on the different schemes available to employees can be found in Note 2 to the accounts.
The pension entitlements of the Executive Directors of Transport Scotland are shown in the adjacent table.
Calculated on normal retirement age (NRA) where pension entitlement is due at that age or current age if over NRA.
The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights.
| Lump Sum at NRA as at 31 March 2023 £000 | Real Increase in Lump Sum at age NRA £000 | Accrued Pension at age NRA as at 31 March 2023 £000 | Real Increase in Pension at age NRA £000 | CETV as at 31 March 2023 £000 | CETV as at 31 March 2022 £000 | Real Increase in CETV in 2022-23 £000 | |
|---|---|---|---|---|---|---|---|
| Hugh Gillies | 0 | 0 | 35-40 | 0-2.5 | 626 | 575 | (15) |
| Stuart Greig | 0 | 0 | 20-25 | 0-2.5 | 242 | 210 | 15 |
| Alison Irvine | 0 | 0 | 15-20 | 0-2.5 | 259 | 259 | 1 |
| Roddy Macdonald | 0 | 0 | 40-45 | 0-2.5 | 744 | 737 | (9) |
| Frances Pacitti | 0 | 0 | 10-15 | 0-2.5 | 140 | 116 | 12 |
| Bill Reeve | 0 | (2.5 - 5) | 55-60 | (2.5 - 5) | 1,522 | 1,806 | (17) |
| Michelle Quinn | 0 | 0 | 25-30 | 0-2.5 | 400 | 351 | 18 |
| Fiona Brown | 0 | 0 | 10-15 | 0-2.5 | 134 | 110 | 12 |
| Lawrence Shackman | 60-65 | (0 – 2.5) | 25-30 | 0-2.5 | 595 | 532 | 5 |
| Bettina Sizeland | 0 | 0 | 20-25 | 0-2.5 | 359 | 316 | 11 |
| Kerry Twyman | 0 | 0 | 30-35 | 0-2.5 | 466 | 409 | 9 |
| Stewart Leggett | 0 | 0 | 25-30 | 0-2.5 | 400 | 352 | 8 |
This pension data was supplied to Transport Scotland by MyCSP for all of the Directors, with the exception of Bill Reeve, whose information was supplied by RAILPEN.
From 2015-16, the majority of staff within the civil service pension scheme changed from the PCSP to the Alpha scheme. Consequently, the figures included on the left, provided by MyCSP, contain figures for both schemes for directors Roy Brannen and Hugh Gillies.
Further details about the Civil Service pension arrangements can be found at the website Home - Civil Service Pension Scheme.
Staff report
Equality, diversity, and inclusion
Our ambition is to be a world-leading, diverse, and inclusive employer where people can be themselves at work. We are committed to building a workforce of people with a wide range of backgrounds, perspectives, and experiences, who are valued for their unique contributions in an environment that is respectful, supportive, and free of discrimination, harassment, or bullying. Over the past two years, the Scottish Government's strategic equality outcomes have continued to drive changes to what we do and how.
The Scottish Government is committed to tackling inequalities in Scottish society and knows that having a diverse workforce is key to this. As an agency of the Scottish Government, we also know that the value of this diversity can only be realised through acknowledging and removing barriers that prevent people from flourishing, and continuing to build an inclusive culture where everyone is valued because of the unique perspectives they bring, whilst also feeling a strong sense of belonging to the Scottish Government as an employer.
We are committed to increasing the diversity of our workforce and to ensure every colleague sets a diversity objective as part of their annual objectives. We encourage all colleagues to increase their diversity understanding through learning activities and accessing all of our diversity networks, and to ensure that everyone can link with an appropriate Diversity Champion in their area. We also direct colleagues to the provisions within the Equality Act 2010, so that they can fully understand how this affects their rights and responsibilities and ensure they know how to access support at all times.
Non-discrimination and equality of opportunity are cornerstones of our approach to pay and reward. We are committed to advancing equality of opportunity in the workplace regardless of protected characteristic or other reason (sex, marital / civil partnership status, age, race, ethnic origin, sexual orientation, disability, religion or belief, gender identity (Trans status), socio economic background, working pattern, employment status, caring responsibilities, or trade union membership).
The table below identifies the gender split within Transport Scotland for the year 2022-23.
| Gender | CEO and Directors | Employees | Total |
|---|---|---|---|
| Female | 4 | 273 | 277 |
| Male | 5 | 328 | 333 |
| Total | 9 | 601 | 610 |
| Gender | CEO and Directors | Employees | Total |
|---|---|---|---|
| Female | 4 | 248 | 252 |
| Male | 5 | 314 | 319 |
| Total | 9 | 562 | 571 |
The Department for Work and Pensions is responsible for developing, formulating, and disseminating equal opportunities guidance for the Civil Service as a whole, but operational responsibility rests with individual departments.
Staff relations
We give a high priority to the development of all our staff. Training, development, and learning opportunities are all regularly reviewed, content checked and updated to reflect valued staff feedback.
We recognise that the success of any organisation depends largely on the effective performance and full attendance of all its employees. People are a valued resource, and as an employer, our attendance management procedures are designed to maintain a happy, well-motivated and healthy workforce.
The aim of the procedures is to:
- be supportive and positive.
- promote fair and consistent treatment for everyone.
- encourage, assist, and make it easy for people to stay in work.
- explain employees' entitlements, roles, and responsibilities.
The Annual People Survey is run across the UK Civil Service and the contract and survey design is managed by the Cabinet Office.
All colleagues are encouraged to participate and to inform on what is working well and what could be improved across the organisation. We receive our own set of headline and directorate results from the survey.
The engagement index for the Civil Service People Survey (CSPS) 2022 survey was 60%. Our results across all of the headline categories have decreased, in comparison to the previous year. The highest-scoring criteria being My Team (81%), Inclusion (80%) and My Manager (77%). Staff responses continue to help us to identify and develop actions and improvements to make Transport Scotland a great place to work for everyone, and we provide regular updates on our progress against all actions.
Wellbeing continues to be a top priority, and whilst our environment has changed considerably in the last few years, we place significant importance on staying connected and matching resources to increasing demands. We will continue to respond appropriately and help to support a good work-life balance for our colleagues.
In 2022-23 an average of 9.1 working days (2021-22: 8.2) were lost due to sickness absence per staff year for Transport Scotland. This compares to an average of 8.05 working days lost due to sickness absence in core Scottish Government in 2022-23.
In 2022-23, the percentage turnover for Transport Scotland was 6.75% (2021-22: 4.9%). There were 36 leavers within the period, and an average headcount of 522.5. This compares to a percentage turnover of 4.44% in core Scottish Government in 2022-23.
Health and safety
Transport Scotland is committed to achieving the highest standards of health, safety and wellbeing for our staff, visitors, contractors, and any others who may be affected by our acts or omissions. We continually engage to promote positive health and safety climates and organisational culture, and we seek improvement through role specific and compulsory health and safety training and e-learning, which in turn is supported by the IOSH Chartered Health & Safety Adviser and Health & Safety Liaison Officers. We also have a bespoke and robust health and safety management system, which is set out clearly within our policy manual. This provides guidance on roles, responsibilities, and proposals for achieving our health, safety, and wellbeing goals, all of which are in alignment with Scottish Government Occupational Health & Safety strategies.
Trade union membership
Transport Scotland values strong employee relations and has a Partnership Board in place. Our Partnership Agreement sets out the terms of reference for the Board in matters affecting staff.
The Board itself is made up of Transport Scotland management, with a representative from TS Human Resources as well as representatives from the Scottish Government Trade Unions. The Board meets on a quarterly basis throughout the year, or additionally on request by Board members.
Details of Scottish Government's trade union facility time including Transport Scotland are published on the Scottish Government website. In future years, we will publish information relating to Transport Scotland separately.
Employment of disabled persons
We are a 'Disability Confident Leader Employer', which recognises our commitment and our positive attitude towards removing the barriers faced by disabled people. Our Recruitment and Retention Plan for Disabled People 2019 sets out the actions we are taking as an employer to support more disabled people into work in Scottish Government and to enable existing disabled employees to thrive and succeed at work.
In doing so, we offer interviews to all disabled applicants and staff who meet the minimum criteria for any post; equip line managers to understand and take action in respect of their management responsibilities; implement workplace adjustments to enable disabled employees to thrive; have appointed Disability Champions at Senior Civil Service level and at Executive team level; and our Disabled Staff Network and our Mental Health Network are critical to our strategic approach to advancing diversity and inclusion, offering rich insights into lived experience and building empathy and understanding.
The number of staff as at 31 March 2023 who had declared a disability employed by Transport Scotland was 50 (2021-22: 52).
Staff costs
Details of Agency staff numbers and costs for the year are contained within Note 2 to the Accounts. Transport Scotland incurred £39.1 million in relation to staff costs in the year 2022-23 (2021-22: £35.4 million). Of this, £37.6 million was in relation to permanent staff, who are civil servants with an employment contract with Transport Scotland (2021-22: £32.9 million). The balance of £1.5 million related to agency staff (2021-22: £2.4 million).
The costs of staff employed on the design, procurement and management of capital projects undertaken by Transport Scotland, totalling £5.4 million (2021-22: £5 million) have been charged to capital expenditure in respect of the projects identified in the year, and these costs are included with the project costs in Note 4.
In addition, the agency paid out £9.5 million in professional consultancy costs in 2022-23 (2021-22: £12.4 million) in relation to professional services required in the procurement of key projects and the delivery of the Agency's transport objectives.
At the end of financial year 2022-23, Transport Scotland's headcount totalled 610, analysed in the table below. The full time equivalent (FTE) figure of Permanent staff was 499.
| Staff Category | Headcount at 31 Mar 2023 | Headcount at 31 Mar 2022 |
|---|---|---|
| Permanent Staff | 536 | 510 |
| Agency Staff | 19 | 16 |
| Consultants Employed | 55 | 45 |
| Total | 610 | 571 |
Pension liabilities
The pension entitlements of the Executive Directors of Transport Scotland are contained within the remuneration report. An indication of how pension liabilities are treated in the accounts, and references to relevant pension schemes, are also contained within the Remuneration Report and in Note 2 to the Accounts.