Remuneration and Staff Report
Remuneration and Staff Report
This section sets out 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 and policies and details on staff numbers and staff related expenditure.
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 external non-executive 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.
John Matheson’s appointment ended in April 2025 with Graeme Dickson succeeding him as Chair. On 1 May 2025, the Chief Executive appointed Gillian Bruton, David Climie and Iain Stewart to the committee for three-year terms.
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 and the value of any bonuses or taxable benefits in kind of the directors for the year 2024-25, along with comparative figures are shown in the table below.
Accrued pension benefits for all directors, with one exception, were not reported in 2023-24 due to an exceptional delay in the calculation of these figures following the application of the public service pensions remedy. These figures are included in the below table to provide a comparator for 2024-25.
Directors Remuneration
| Director | Salary £000s | Bonus £000s | Benefits in Kind £000s | Pension Benefits£000s | Total £000s | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2024-25 | 2023-24 | 2024-25 | 2023-24 | 2024-25 | 2023-24 | 2024-25 | 2023-24 | 2024-25 | 2023-24 | |
| Fiona Brown (Interim) (Transport Strategy & Analysis) | 90-95 | 85- 90 | - | - | - | - | 36 | 34 | 125-130 | 115-120 |
| Morna Cannon (Interim) (Environment, Climate and Sustainability) | 90-95 | 75- 80 | - | - | 35 | 31 | 125-130 | 105-110 | ||
| Gary Cox (Interim) (Aviation, Maritime, Freight & Canals) | 35-40 | 75- 80 | - | - | 54 | 0 | 90-95 | 75-80 | ||
| Hugh Gillies (Roads) | 90-95 | 85- 90 | - | - | - | - | 72 | 49 | 160-165 | 135-140 |
| Alison Irvine (Chief Executive) | 105-110 | 100- 105 | - | - | - | - | 42 | 40 | 145-150 | 140-145 |
| Roddy Macdonald (Ferries) | 85-90 | 85- 90 | - | - | - | - | 57 | 62 | 145-150 | 145-150 |
| Bill Reeve (Rail) | 125-130 | 115- 120 | - | - | - | - | 53 | 12 | 180-185 | 125-130 |
| Lawrence Shackman (Major Projects) | 90-95 | 85- 90 | - | - | - | - | 56 | 40 | 145-150 | 125-130 |
| Bettina Sizeland (Bus, Accessibility and Active Travel) | 90-95 | 85- 90 | - | - | - | - | 47 | 46 | 140-145 | 130-135 |
| Kerry Twyman (Finance and Corporate Services) | 110-115 | 105- 110 | - | - | - | - | 66 | 48 | 175-180 | 150-155 |
| Chris Wilcock(Interim) | 0-5 | 0 | - | - | - | - | 0-5 | 0 | 0-5 | 0 |
Single total figure of remuneration
In respect of the included information the value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20, 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.
Gary Cox left post as interim Director of Aviation, Maritime, Freight & Canal on 30 August 2024. The £35,000 – £40,000 for year 2024-25 represents salary from 1 April 2024 date of leaving. 2024-25 full year equivalent banding would be £90,000 – £95,000.
Roddy Macdonald left post as Director of Ferries on 28 February 2025. The £85-90,000 for year 2024-25 represents salary to leaving date. 2024-25 full year equivalent banding would be £90,000 – £95,000.
Chris Wilcock joined post as Interim Director of Ferries on 12 March 2025. The £0 – £5,000 for year 2024-25 represents salary from this start date to 31 March 2025. 2024-25 full year equivalent banding would be £90,000 – £95,000.
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 employers’ 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 2024-25 are as follows:
- John Matheson £330 daily rate
- Graeme Dickson £330 daily rate
- Lesley Macleod £330 daily rate
The renumeration of the Transport Scotland external members, for all commitments, were as follows.
| Name | Title | Fees £000 | |
|---|---|---|---|
| 2024-25 | 2023-24 | ||
| John Matheson | External Member ARC | 15-20 | 5-10 |
| Graeme Dickson | External Member ARC | 5-10 | 0-5 |
| Lesley Macleod | External Member ARC | 0-5 | 0-5 |
This is in line with Scottish Government remuneration of external members.
Fair pay disclosure
Reporting bodies are required to disclose the relationship between the remuneration of the highest paid director in the organisation and the median remuneration of the organisation’s workforce, as well as the 25th and 75th percentiles. Total remuneration includes salary, performance-related pay and non-cash benefits. There were no performance-related pay or non-cash benefits made during the financial year.
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 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 £125k-£130k (2023-24: £115k-£120k). Please note the below year to year comparisons in relation to the highest paid director.
- This was 2.6 times (2023-24: 2.4) the median remuneration of the workforce, which was £49,472 (2023-24: £48,031).
- This was 3.3 times (2023-24: 3.2) the 25th percentile of the workforce, which was £38,271 (2023-24 £37,156).
- This was 2.0 times (2023-24: 1.9) the 75th percentile of the workforce, which was £64,859 (2023-24: £62,969).
Changes in pay ratios are attributed to changes in remuneration of the highest paid director and the pay and benefits of employees taken as a whole; increases in remuneration are in line with approved pay policies. The table below provides a summary of these pay ratios:
| Year | Midpoint £ | Median £ | Ratio | 25 Percentile £ | Ratio | 75 Percentile £ | Ratio |
|---|---|---|---|---|---|---|---|
| 2024-25 | 127,500 | 49,472 | 2.6 | 38,271 | 3.3 | 63,241 | 2.0 |
| 2023-24 | 117,500 | 48,031 | 2.4 | 37,156 | 3.2 | 62,969 | 1.9 |
Changes in year
The average percentage change increased by 2.2% primarily due to the 2024-25 pay award.
| 2024-25 Total Salary£ | 2023-24 Average FTE | Average Salary per FTE | 2024-25 Total Salary£ | 2023-24 Average FTE | Average Salary per FTE | Average Percentage Change | |
|---|---|---|---|---|---|---|---|
| TS Employees | 31,743,000 | 557 | 56,989 | 28,702,976 | 515 | 55,756 | 2.2% |
In 2024-25, no employee received remuneration in excess of the highest paid director (2023-24: None). Remuneration across Transport Scotland ranged from £25k – £125.5k (2023-24: £22k – £117.5k).
| 2024-25 Midpoint£ | 2023-24 Midpoint£ | Percentage Change | |
|---|---|---|---|
| Highest-Paid Director | 127,500 | 117,500 | 8.50% |
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.
Civil Service and other Compensation Scheme
Within Transport Scotland, no members of staff agreed departures under the Civil Service Compensation Scheme rules in 2024-25 or 2023-24.
One member of staff retired on ill health grounds in 2024-25. (2023-24: Three).
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 2025. The pension entitlements of the Directors of Transport Scotland are shown in the below table. These are 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.
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 also 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.
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.
Further details on the different schemes available to employees can be found in Note 2 to the accounts. Further details about the Civil Service pension arrangements can be found at the website Home – Civil Service Pension Scheme.
| Lump Sum at NRA as at 31 March 2025£000 | Real Increase in Lump Sum at age NRA£000 | Accrued Pension at age NRA as at 31 March 2025£000 | Real Increase in Pension at age NRA£000 | CETV as at 31 March 2025£000 | CETV as at 31 March 2024£000 | Real Increase in CETV in 2024-25£000 | |
|---|---|---|---|---|---|---|---|
| Fiona Brown | 0 | 0 | 20-25 | 0-2.5 | 251 | 208 | 19 |
| Morna Cannon | 0 | 0 | 10-15 | 0-2.5 | 159 | 126 | 17 |
| Gary Cox | 105-110 | 5-7.5 | 40-45 | 2.5-5 | 888 | 829 | 48 |
| Hugh Gillies | 0 | 0 | 40-45 | 2.5-5 | 921 | 817 | 66 |
| Alison Irvine | 0 | 0 | 25-30 | 2.5-5 | 456 | 384 | 30 |
| Roddy Macdonald | 0 | 0 | 50-55 | 2.5-5 | 1087 | 989 | 56 |
| Bill Reeve | 0 | 0-2.5 | 65-70 | 2.5-5 | 1623 | 1518 | 45 |
| Lawrence Shackman | 75-80 | 0-2.5 | 30-35 | 2.5-5 | 753 | 697 | 50 |
| Bettina Sizeland | 0 | 0 | 25-30 | 2.5-5 | 558 | 491 | 39 |
| Kerry Twyman | 0 | 0 | 40-45 | 2.5-5 | 764 | 682 | 48 |
Staff Report
Equality, diversity, and inclusion
As part of the Scottish Government, Transport Scotland share its vision to be a world-leading, diverse employer where colleagues can be themselves at work. We are committed to giving all our colleagues the opportunity to shine and to nurturing talent at all levels with a diverse workforce reflective of the communities we serve. We foster an inclusive workforce culture which values the contribution of staff from all backgrounds because we know a more inclusive workspace is more productive and innovative.
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.
Transport Scotland’s equality, diversity and inclusion group has met frequently in the last year. The group has sought to highlight suitable networks and learning opportunities. 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 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.
The table below overviews the gender split within Transport Scotland for the year 2024-25.
| 2024-25 | |||
|---|---|---|---|
| Gender | CEO and Directors | Employees | Total |
| Female | 5 | 310 | 323 |
| Male | 4 | 306 | 318 |
| Total | 9 | 616 | 625 |
| 2023-24 | |||
|---|---|---|---|
| Gender | CEO and Directors | Employees | Total |
| Female | 5 | 273 | 278 |
| Male | 5 | 304 | 309 |
| Total | 10 | 577 | 587 |
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) 2024 survey was 61% (2023 59%). Our results across the headline categories saw an increase in all areas, apart from Inclusion & Fair Treatment which remained the same as last year’s survey with a score of 78%. The highest increases compared to last year’s survey results were Pay and Benefits (55%), Organisational Objectives (76%) and Resources & Workload (73%). The highest overall scores were My Team (83%), My Work (78%) and Inclusion & Fair Treatment (78%). 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.
Sickness Absence Rates
In 2024-25 an average of 9.1 working days (2023-24: 9.1) were lost due to sickness absence per staff year for Transport Scotland. This compares to an average of 8.7 working days lost due to sickness absence in core Scottish Government in 2024-25.
In 2024-25, the percentage turnover for Transport Scotland permanent staff was 4.94% (2023-24: 5.71%). There were 28 leavers within the period, and an average headcount of 557 permanent staff. This compares to a percentage turnover of 3.88% in core Scottish Government in 2024-25, and an average headcount of 9,350 permanent staff.
Health, safety and wellbeing
Transport Scotland 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.
Transport Scotland Wellbeing
At Transport Scotland, we are committed to fostering a supportive and healthy working environment for all our staff. This year, we developed a comprehensive Wellbeing Strategy and Action Plan, outlining our approach to staff wellbeing and signposting a range of resources available to support our people. To ensure this strategy is meaningful and actionable, we held wellbeing workshops with every Directorate, focusing on practical steps each team can take to enhance wellbeing in their specific context. In preparation for the introduction of the 35-hour working week, we also supported the implementation of a ‘wellbeing hour’, giving staff the opportunity to take one hour each week to step away from their usual duties and focus on their personal wellbeing. These initiatives reflect our ongoing dedication to creating a positive workplace culture. Looking ahead, we will continue to prioritise and expand our wellbeing activities in the next financial year, ensuring our people feel valued, supported, and empowered.
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 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.
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 Diversity and Inclusion Employer Strategy policy was published in May 2024 and sets out our employer visions, commitments and equality outcomes 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 2025 who had declared a disability employed by Transport Scotland was 68 (2023-24: 57).
Staff numbers and costs
Details of staff costs for the year are contained within Note 2 to the Accounts. Transport Scotland incurred £43 million in relation to total staff costs in the year 2024-25 (2023-24: £39.2 million). Of this, £42 million was in relation to permanent staff, who are civil servants with an employment contract with Transport Scotland (2023-24: £38.3 million). The balance of £1 million related to agency staff (2023-24: £0.9 million).
Note 2 includes the costs of staff employed on the design, procurement and management of capital projects undertaken by Transport Scotland. Totalling £4.7 million (2023-24 £5.1 million), these costs have been charged to capital expenditure in respect of the projects identified in the year and are included with the project costs in Note 4.
In addition to the staff costs for the year contained within Note 2 to the accounts, the agency paid out £6.1 million in professional consultancy costs in 2024-25 (2023-24: £11.6 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 2024-25, Transport Scotland’s headcount totalled 625, analysed in the table below.
| Staff Category | Headcount at 31 March 2025 | Headcount at 31 March 2024 |
|---|---|---|
| Permanent Staff | 579 | 536 |
| Agency Staff | 2 | 7 |
| Consultants Employed | 44 | 44 |
| Total | 625 | 587 |
Pension liabilities
The pension entitlements of the 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.