In his introduction to Arts Council England’s Annual Review of 2006/07, outgoing Chief Executive Peter Hewitt has highlighted the “difficulties and uncertainties” relating to the recent restructuring of the Arts Council’s national office, and the “unsettling” impact of the loss of many experienced staff. Describing the new slimmed-down national office as “smaller and more focused on national strategic leadership”, he went on to assert his view that “whatever the future may hold, the arts sector today is healthier, stronger and more robust than it was 10 years ago”.
Staff-related costs continued to place severe pressures on ACE’s finances last year. The number of staff employed reached 884, the second highest head-count in its history, only marginally down from the total of 899 reached the previous year, and an increase of nearly 20% since 2003/04 when ACE first merged with the former Regional Arts Boards. The remuneration for ACE’s executive directors totalled more than £1.5m, with Peter Hewitt himself receiving a package worth £176,000, an increase of 8.6% over the previous year. A performance bonus payment worth £23,000 was shared between the seven highest performing directors, who were judged to have delivered over and above their objectives and “demonstrated an exceptional leadership style, a high level of competency and impressive adherence to the organisation's values”. The three highest paid regional directors, in London, the East and the North West, each received packages worth over £100,000. A further 16 senior executives – six more than the previous year – were paid in excess of £60,000. The one-off costs of the redundancy programme associated with the restructuring exercise totalled £1.7m, with 67 staff members having been made redundant, including two former Executive Directors who received £82,000 and £67,000 respectively. ACE now aims to make long-term savings on staff costs and further property-related savings from the rationalisation of some its administrative functions, which are being relocated from London to Manchester.
Published: 03-12-2007