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   Web Issue 3271 October 13 2008   
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Scottish Enterprise rewards ex-director with £777,600
MARK SMITH, Deputy Business EditorSeptember 07 2007
COMFORT ZONE: Lena Wilson's 26.9% pay rise comfortably exceeded the government's ideal 2% increase for public sector workers.
COMFORT ZONE: Lena Wilson's 26.9% pay rise comfortably exceeded the government's ideal 2% increase for public sector workers.

Iain Carmichael, the former finance director at Scottish Enterprise who played a key role in the mismanagement of its taxpayer-funded half-a- billion-pound-plus budget in 2005/06, had an extra £380,600 pumped into his pension fund, it emerged yesterday.

The annual accounts of the economic and business development quango, which were made public yesterday, reveal that Carmichael retired in March with a golden goodbye worth £539,105 - nearly three times the £200,000 that had been previously estimated.

He received £106,765 in pay in lieu of notice, £5544 for accrued holiday pay, £46,196 for loss of office and £380,600, which was transferred into the Scottish Enterprise pension fund to bump up his retirement pay.

The revelation will doubtless anger and outrage critics of Scottish Enterprise, which was accused by MSPs of "wholly dissatisfactory" financial controls in the wake of overspending on the budget by £33m during the 2005/06 financial year.

At the time, Carmichael, Scottish Enterprise chairman Sir John Ward and chief executive Jack Perry were hauled in front of Holyrood's enterprise and culture committee and questioned. The trio admitted mistakes were made in the allocation of public funds.

In the wake of that financial crisis, Carmichael was removed from his finance director's position and was taken off the board of directors, and moved sideways into a new position.

Nonetheless, Carmichael's pension pot has now swelled to £777,600 - taking the current cash equivalent transfer value of his pension of £397,000 which, according to Scottish Enterprise, in "very basic terms", could be added to the £380,600 paid into his fund in March when Carmichael left the agency.

A spokesman for Scottish Enterprise yesterday confirmed that Carmichael had taken early retirement at age 54 but, as part of his leaving agreement, he was given a full pension "as if he were retiring at 60," the spokesman said.

A statement from Scottish Enterprise said: "This payment is based on actuarial calculations on what may have to be paid to the policyholder for the period of his retirement."

One insider at the agency added: "You have to remember Iain Carmichael is not going to be getting his £100,000 a year salary anymore."

In 2006, Carmichael in fact was awarded £106,000 in basic salary, but then a further £10,000 was added in benefits and bonuses, according to the agency's annual report and accounts.

Interestingly, the annual report notes that the "key objective" of its financial management in its 2006/07 year was to "ensure that the financial outturn for the year was within the resource budget allocated by Scottish ministers".

It added: "SE successfully achieved its financial objective for the year. The final net cash outturn was £912,000 (0.2%) below the related resource budget allocation."

The report also noted that its budget for the current financial year amounts to £620m, up from £550m the previous year.

Meanwhile, the Scottish Enterprise annual accounts also reveal that its top two executives - chief executive Jack Perry and Lena Wilson, the agency's chief operating officer and Perry's second-in- command - pocketed pay rises of 15.3% and 26.9% respectively, well in excess of Prime Minister Gordon Brown's sought-after 2% pay hikes for the public sector.

Collectively, the taxpayer shelled out an extra £67,000 to their pay packages last year.

Perry's salary came in at £219,000 - a figure which includes a £23,000 performance bonus, and a £9000 allowance for his car and "other benefits" - up from the previous year's £190,000 total.

Wilson reaped £179,000 - which includes her £17,000 performance bonus and a £4000 car allowance - compared with £141,000 the year before.

Scottish Enterprise, which yesterday unusually held its annual meeting in Dumfries, noted that "this was a very successful year" and that "actual performance against every objective was either within or in excess of the forecast range".

The agency also said that during the year it had "implemented a voluntary severance programme" which had been aimed at staff in senior management positions and had "resulted in 39 staff leaving". Among them was Iain Carmichael and agency veteran Charlie Woods.


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Posted by: Jim O'Rourke, Kilwinning on 11:00pm Thu 6 Sep 07
What can I say?
I'm a social worker employed by a local authority. My workload is quite demanding. I do not have access to performance realted pay or any other loading to my salary.
I completely fail to see the rationale for these basic salaries and certainly nothing that justifies bonuses of any kind.
I have a hard enough time with my work and the tax burden as it is. Where is the justification for the gravy train these people seem to be on?
Posted by: Rab, Glasgow on 12:33am Fri 7 Sep 07
This is just theft of OUR money. These people have no shame and they stick two fingers up to the rest of us as they ride off into the sunset.

What a joke
Posted by: westhighlander, west highlands on 1:14am Fri 7 Sep 07
Clearly, Brussels is not the only station for boarding gravy trains. My wife is a very hard working midwife - Lena Wilson's pay rise last year alone was more than my wife's salary. This is all just utterly gross, and what's saddest of all, of course, is that these people would never in their wildest dreams attain these salary levels in private business: the reason they're where they are is because they're second raters anyway.
Enough's enough. Get this agency shut down and get some common sense back into the disbursement of OUR money.
Posted by: bob on 1:23am Fri 7 Sep 07
If you run one of the world's most successful economic development agencies, with a budget of £500 million to spend, then what is wrong with having a performance related salary of over £200,000 per annum?

You cannot expect a mangement team of this calibre to earn the salary of a mere social worker? This management team are leading the delivery of Scotland's economic future.
Posted by: neil, scotland on 2:50am Fri 7 Sep 07
I thought The Vatican was 'the world's most successful economic development agency' but average wage of a Cardinal is zero as I
recall from 'The Sunday Times' list of the richest folk in Scotland.
They also do social work as well .........for basic food and lodging.
Posted by: LW on 6:59am Fri 7 Sep 07
bob wrote:
If you run one of the world's most successful economic development agencies, with a budget of £500 million to spend, then what is wrong with having a performance related salary of over £200,000 per annum? You cannot expect a mangement team of this calibre to earn the salary of a mere social worker? This management team are leading the delivery of Scotland's economic future.
Arf
Posted by: andy highland, skye on 8:39am Fri 7 Sep 07
aye brooney is being warned about public sector pay but he cant do anything he needs our money to pay off all his toadies elevated to the level of their own incompetence the grunts further down the pile can go hang after all brooney has a pension of £1.2 million a year to pick up just for moving next door he is only in his 50s how much is that going to cost us and blair gets £3.2 million a year for life they do care about us dont they !!!!!!!!!!!!!!!!!!!!
!!!!!!!!!!!!!!!!!
Posted by: Lanarkshire Labour, Deepest Darkest Lanarkshire on 8:47am Fri 7 Sep 07
bob wrote:
If you run one of the world's most successful economic development agencies, with a budget of £500 million to spend, then what is wrong with having a performance related salary of over £200,000 per annum? You cannot expect a mangement team of this calibre to earn the salary of a mere social worker? This management team are leading the delivery of Scotland's economic future.
Hello Mr Perry is that you?
Posted by: Scamp on 9:14am Fri 7 Sep 07

Well Bob the answer then is quite simple. Make their pay rises performance based by matching them with Scottish economic growth. So if economic growth is 2% then thats what they get.

If these people are as good as you suggest then they shouldn't have any problem with that.
Posted by: dfg, La la Lanarkshire on 9:42am Fri 7 Sep 07
Obscene, utterly obscene. Jack's salary increase equals my entire salary, and he gets a car allowance !
As for one of the worlds most successful economic development agencies ...pray tell me why Scotalnds economic growth rate is consistently a percentage point behind that of our southern neighbour ? The nats will just love this !
Posted by: C, Edinburgh on 9:47am Fri 7 Sep 07
Absolutely shocking.
The Senior Management Team who had to grovel to the executive because they got their sums wrong, and were astonishingly bailed out at no penalty to the organisation decided to reward their incompetency with big bonuses and pay offs!
Now their terror is that this year they cannot spend their massive budget because of lack of foresight, innovation or planning.
Look out for expensive, hare-brained, no objective projects to soak up these funds before the financial year is up.
Posted by: Gorski, Glasgow on 10:09am Fri 7 Sep 07
westhighlander wrote:
Clearly, Brussels is not the only station for boarding gravy trains. My wife is a very hard working midwife - Lena Wilson's pay rise last year alone was more than my wife's salary. This is all just utterly gross, and what's saddest of all, of course, is that these people would never in their wildest dreams attain these salary levels in private business: the reason they're where they are is because they're second raters anyway. Enough's enough. Get this agency shut down and get some common sense back into the disbursement of OUR money.
Um, although I understand and empathise with most of these points, I think you'll find Jack Perry was a partner at Ernst & Young. If he was still there he'd be taking home more than double the sum he just has..
Posted by: Gorski, Glasgow on 10:13am Fri 7 Sep 07
andy highland wrote:
aye brooney is being warned about public sector pay but he cant do anything he needs our money to pay off all his toadies elevated to the level of their own incompetence the grunts further down the pile can go hang after all brooney has a pension of £1.2 million a year to pick up just for moving next door he is only in his 50s how much is that going to cost us and blair gets £3.2 million a year for life they do care about us dont they !!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!
Nice they teach you grammar in Skye! lol
Posted by: Not fooled,, Argyll on 10:14am Fri 7 Sep 07
This is the management team which has suspended two senior members of staff who, (coincidentally?) happened to be running the only part of SE which is acknowledged as worth keeping and is due to be taken out of SE's control. Does anyone else smell a rat? The rest of the organisation is a waste of space - they're celebrating achievement of targets they set for themselves! They've had a good run for our money but the time has come to shut them down. The idea that economic success can be delivered by civil servants is as logical as getting Abu Hamsa to teach you to play the piano! To paraphrase Dawkins, let's end the SE Delusion now. Come on Jim Mather - be bold: shut them down now please.
Posted by: wiine te pooh, the hive on 10:16am Fri 7 Sep 07
Gorski wrote:
westhighlander wrote: Clearly, Brussels is not the only station for boarding gravy trains. My wife is a very hard working midwife - Lena Wilson's pay rise last year alone was more than my wife's salary. This is all just utterly gross, and what's saddest of all, of course, is that these people would never in their wildest dreams attain these salary levels in private business: the reason they're where they are is because they're second raters anyway. Enough's enough. Get this agency shut down and get some common sense back into the disbursement of OUR money.
Um, although I understand and empathise with most of these points, I think you'll find Jack Perry was a partner at Ernst & Young. If he was still there he'd be taking home more than double the sum he just has..
I think Perry would have not left EY unless it was worth his while. Also he left EY when the number of partners were being reduced. What does the Scottish Exec do ?? Cam someone tell me in 20 words?????
Posted by: Gorski, Glasgow on 10:16am Fri 7 Sep 07
dfg wrote:
Obscene, utterly obscene. Jack's salary increase equals my entire salary, and he gets a car allowance ! As for one of the worlds most successful economic development agencies ...pray tell me why Scotalnds economic growth rate is consistently a percentage point behind that of our southern neighbour ? The nats will just love this !
Aye but to be fair.... you don't need that much reddies to live in Lanarkshire. lol
Posted by: Heather, Glasgow on 10:18am Fri 7 Sep 07
The irony is that SE has encouraged the creation of an economy - certainly in Glasgow - where a frightening percentage of full time workers are "perm-a-temps" sourced through recruitment agencies who receive no holidays, no sick pay, and for whom the thought of a pension scheme is laughable. The taxpayer-funded RSA grant scheme even pays companies to set up in this way.

For SE to bankroll this new working reality while lavishing private-sector levels of compensation and bonuses on executives whose failure has already been made public knowledge is stunning. As the national business advocate they should be setting an example - and the example they're setting says that holidays and pensions are a privilege for executives and not the unwashed masses.
Posted by: Gorski, Glasgow on 10:35am Fri 7 Sep 07
I notice that SE have on their management team a chap who's job title is 'MD, People and Organisation Development'. What the hell kind of a job title is that for a personnel manager?
Posted by: Gorski, Glasgow on 10:41am Fri 7 Sep 07
Heather wrote:
The irony is that SE has encouraged the creation of an economy - certainly in Glasgow - where a frightening percentage of full time workers are \"perm-a-temps\" sourced through recruitment agencies who receive no holidays, no sick pay, and for whom the thought of a pension scheme is laughable. The taxpayer-funded RSA grant scheme even pays companies to set up in this way. For SE to bankroll this new working reality while lavishing private-sector levels of compensation and bonuses on executives whose failure has already been made public knowledge is stunning. As the national business advocate they should be setting an example - and the example they\'re setting says that holidays and pensions are a privilege for executives and not the unwashed masses.
Get yer facts right Heather. You'll find that contact centre outsourcer Response got an RSA recently - and the conditions of this were based around creating permanent jobs. Uuuuuuuuuuuuuuuuunlu

cky
Posted by: RM, Glasgow on 11:07am Fri 7 Sep 07
Yet again I am ashamed to be associated with Scottish Enterprise. Is there no end to the shame that the senior staff bring down upon us, damaging the agency's credibility with the very people we are supposed to work with?
How dare Lena Wilson sit with her feet up on the desk thumbing her nose at the rest of us who do actually work hard and get paid less than her increase? She could at least pretend not to be an arrogant fat cat who has jumped up to a job that she can't handle.
And as for that pseudo Yankee Teflon Jack - he's a disgrace to Scotland and should be deported forthwith.
Alex Neill where are you?
Posted by: Heather, Glasgow on 11:25am Fri 7 Sep 07
Gorski, do your research and you'll find that's an exception to the rule. One responsible company doesn't excuse the dozens which aren't. Glasgow is now a two-tier employment system of "haves" and "have nots" and our business leadership encourages it rather than questions it. Responsible companies and recruiters have nothing to fear from addressing these issues. But, back to the point, where is the leadership and good practice to emulate when being raked over the coals gets you a £700k reward?
Posted by: gimme a break, Ayrshire on 12:06pm Fri 7 Sep 07
"the delivery of scotlands economic future" what a joke. I spent six years at SE leaving two tears ago. When I left at least three days a week was spent on internal monitoring, record keeping, self assessment, peer assessment etc etc etc. Most of the management wouldnt know "enterprise" if it jumped up and bit them . SE is just like so many other quangos - everyone is just about keeping their head down and kiling time until they get their pension. Honestly, how can a bunch of predominantly career public sector workers be tasked with successfully creating wealth? Sack them all and slash corporate taxes. That is the real way to promote entrepreneurship. As for Carmichael nothing against him personally but how can anyone justify these figures - this is not some superstar economic development guru. He is a chartered accountant managing a budget in the public sector. Dont compare these wages to the private sector either because the workload doesnt compare. At atlantic quay at 5pm there is a queue for the lifts to get out of the office. From senior directors down.
Posted by: insideman, a sinking ship. on 12:08pm Fri 7 Sep 07
hey guys, why worry about this payoff. GHA has a bunch of guys who
have spent years doing squat, bar holding hands with Alex Baird in
shady watering holes. Fat cat works, fat cat gets piles of dosh good luck to him. Why can't we talk about the guys who are seeking to wipe out the public sector from within? Heads have rolled already
mainly dodgy and very untruthful contractor types, and their burdz.
Sorry we are hijacking this page, the democratic herald has closed other avenues. Names on monday wil be revealed
Posted by: Yok Finney, Ross-shire on 12:50pm Fri 7 Sep 07
Carmichael's pension pot has now swelled to £777,600

Which is the cost of my new shipbuild . Well I put a figure on it though I see it as coming in as above £1M as it's the real world I live in.

That would employ skilled people in my native Scotland.

It's not anger I feel, more, at this stage, (and what more financial scams will emerge) that this best option is to shut down Scottish Enterprise in it's entirety with no redundancy packages, golden handshakes, nothing at all. For If I can do my design-engineering on a laptop under a tarpaulin at Mallaig harbour - and I'm not far off this state - these self-seekers will find their own comfortable cranny.



Posted by: Gorski, Glasgow on 1:18pm Fri 7 Sep 07
RM wrote:
Yet again I am ashamed to be associated with Scottish Enterprise. Is there no end to the shame that the senior staff bring down upon us, damaging the agency's credibility with the very people we are supposed to work with? How dare Lena Wilson sit with her feet up on the desk thumbing her nose at the rest of us who do actually work hard and get paid less than her increase? She could at least pretend not to be an arrogant fat cat who has jumped up to a job that she can't handle. And as for that pseudo Yankee Teflon Jack - he's a disgrace to Scotland and should be deported forthwith. Alex Neill where are you?
You're so getting busted. Big Brother's gonna trace you! lol
Posted by: Gorski, Glasgow on 1:22pm Fri 7 Sep 07
Heather wrote:
Gorski, do your research and you'll find that's an exception to the rule. One responsible company doesn't excuse the dozens which aren't. Glasgow is now a two-tier employment system of "haves" and "have nots" and our business leadership encourages it rather than questions it. Responsible companies and recruiters have nothing to fear from addressing these issues. But, back to the point, where is the leadership and good practice to emulate when being raked over the coals gets you a £700k reward?
Nuh Heather, you do your research! :)
Posted by: Heather, Glasgow on 2:41pm Fri 7 Sep 07
RM, you could always get help polishing up your CV to make you competitive in the private sector. Isn't there some state-funded agency or something which is supposed to do that...?

Here's the full accounting including Ms Wilson's goodie basket.
http://www.scottish-
enterprise.com/sedot
com_home/about_se/re
ports-and-accounts.h
tm
Posted by: Alphonso, Glasgow on 3:09pm Fri 7 Sep 07
Its easy to slate any set of 'public sector' employees - particularly those whose only crime is to do the jobs asked of them (for no more than an average wage) by politicians and senior managers.

Perhaps we should look there for the blame

Oh, and Heather, Scottish Enterprise do not administer RSA, the Executive do that job. uuuuuuuunlucky
Posted by: Heather, Glasgow on 3:21pm Fri 7 Sep 07
Oh the irony in your critique...
Posted by: JJ, Newmilns on 3:41pm Fri 7 Sep 07
I've tried to get business start up money from this mob on a number of occassions. I have chased the SE carrot on a stick enough times to realise that if you are not mixing in the right circles, you basically get nothing. I have now decided the only way to get money from them is to join their board of directors. Good money, excellent bonus and benefits package, then, when you really mess up, you are handed hundreds of thousands of pounds to leave. Sounds like a good deal to me. One final note, they might be able to financially assist small and start up companies if they didn't occupy such vast, lavish offices located in the most expensive areas of the city.
Posted by: Sam, Glasgow on 4:38pm Fri 7 Sep 07
Not fooled, wrote:
This is the management team which has suspended two senior members of staff who, (coincidentally?) happened to be running the only part of SE which is acknowledged as worth keeping and is due to be taken out of SE's control. Does anyone else smell a rat? The rest of the organisation is a waste of space - they're celebrating achievement of targets they set for themselves! They've had a good run for our money but the time has come to shut them down. The idea that economic success can be delivered by civil servants is as logical as getting Abu Hamsa to teach you to play the piano! To paraphrase Dawkins, let's end the SE Delusion now. Come on Jim Mather - be bold: shut them down now please.
Not fooled?? Clueless more like.

Posted by: Billy Harkin, Glasgow on 4:42pm Fri 7 Sep 07
Is it time that Jack Perry and Lena Wilson consirered their own positions - or better still - get the sack by our new Scottish Government?
The whole thing is a parable for the Joke that SE is - a rewarder of mediocrity and failure.
Time to close it down.
Posted by: Sam, Glasgow on 4:43pm Fri 7 Sep 07
Heather wrote:
Gorski, do your research and you'll find that's an exception to the rule. One responsible company doesn't excuse the dozens which aren't. Glasgow is now a two-tier employment system of "haves" and "have nots" and our business leadership encourages it rather than questions it. Responsible companies and recruiters have nothing to fear from addressing these issues. But, back to the point, where is the leadership and good practice to emulate when being raked over the coals gets you a £700k reward?
Heather are you suggesting that the public sector interfere with a free market economy? There are thouands of contact centre jobs in Glasgow, if one company is offering such poor terms and conditions I am sure people will vote with their feet.
Posted by: Doris on 5:16pm Fri 7 Sep 07
.... and the occupants of Atlantic Quay looked out at the poor and those with the 'wrong skills for tomorrow's economy' and laughed at them! Then they headed off to the trendiest wine bars to discuss macro-economic strategy and laugh over a glass of quality bubbly. Then they laughed all the way to the bank, with their generous salaries. Next month, if they close the place down, they will still be laughing all the way to the bank with their enhanced redundancy packages.

It's all one big laugh for these people! Is anyone actually in control?


Posted by: Rob Campbell on 6:10pm Fri 7 Sep 07
I sense much indignation at the idea of a ´public´? service head-honcho getting a large pay-off package. Why do most of you assume this to be peculiar to the public services?

If your interest stretches, try looking into the business pages of various quality journals and you will find that those terrible ´shareholders´are screwed by failed managers every bit as much - it just doesn´t seem to excite anyone´s public display of raised hackles. Until they perhaps figure that the money that´s being paid to reward private executive failure is partly coming out of their pension funds.

You shouldn´t have to be a capitalist to have an intererst in private companies - they pay for many of the things which you might think just grow on trees or, perhaps, come out of direct taxation. Think again. Read some more.
Posted by: bob on 6:36pm Fri 7 Sep 07
Where are the defenders of one of the world's most successful economic development agencies, with a budget of £500 million to spend?

Where are the private sector executives telling us about how SE has added real value to their bottom line?

Where are the SE employees who believe that their organisation is one of the world's leading economic development agencies and is fit for purpose?
Posted by: Digory, Narnia on 9:24pm Fri 7 Sep 07
Is Dumfries the Twilight Zone?
Posted by: B Boyd, Fife on 10:49pm Fri 7 Sep 07
Bob - Where, Where, Where? - they're out doing something more constructive with their lives, rather than spending time spewing on a comments web site.
Posted by: Sam, Glasgow on 6:43am Sat 8 Sep 07
RM wrote:
Yet again I am ashamed to be associated with Scottish Enterprise. Is there no end to the shame that the senior staff bring down upon us, damaging the agency's credibility with the very people we are supposed to work with? How dare Lena Wilson sit with her feet up on the desk thumbing her nose at the rest of us who do actually work hard and get paid less than her increase? She could at least pretend not to be an arrogant fat cat who has jumped up to a job that she can't handle. And as for that pseudo Yankee Teflon Jack - he's a disgrace to Scotland and should be deported forthwith. Alex Neill where are you?
well you appear a treacherous toad
Posted by: outraged on 11:11am Sat 8 Sep 07
How can Wilson sit looking so smug when she has been personally responsible for many of the fiascos in SE. Together with Perry she scapegoated Carmichael even though they ignored his warnings. Then she presided over a £14m project catastrophe, again ignoring warnings from her IT tream, and now she is disciplining employees for doing something she herself authorised. And all this right under Perry's nose who doesn'rt sem to ahve a clue. Disgraceful that this pair are rewarded in this way. Who is actually in charge of them?
Posted by: neil, dundee on 5:06pm Sat 8 Sep 07
Gorski wrote:
westhighlander wrote: Clearly, Brussels is not the only station for boarding gravy trains. My wife is a very hard working midwife - Lena Wilson\'s pay rise last year alone was more than my wife\'s salary. This is all just utterly gross, and what\'s saddest of all, of course, is that these people would never in their wildest dreams attain these salary levels in private business: the reason they\'re where they are is because they\'re second raters anyway. Enough\'s enough. Get this agency shut down and get some common sense back into the disbursement of OUR money.
Um, although I understand and empathise with most of these points, I think you\'ll find Jack Perry was a partner at Ernst & Young. If he was still there he\'d be taking home more than double the sum he just has..
Jack Perry was indeed a partner at Ernst & Young - as was the previous CEO of this public sector quango Dr Robert Crawford.

Crawford moved to Ernst& Young as their 'lead partner for foreign direct investment' (ie advising clients on how to maximise public
sector grants when relocating to Scotland) immediately after the
two year secondment to the World Bank in Washington that THE
SCOTTISH TAXPAYER PAID FOR through a Scottish Enterprise
World Bank secondment scheme - that also helped boost the subsequent public sector salary of Lena Wilson when she too
benefited from this (Scottish tax-payer funded) scheme to give
these sheltered Quangocrats some experience of another big
public bureaucracy. These secondments were not advertised
externally or internally within Scottish Enterprise I understand.
They were 'sweeteners' handed out to frustrated senior staff.

Now, OK - the World Bank is an interesting place to work no
doubt .....Wolfowitz's girlfriend got a great job at the US State
Department on the back of that ......but it is not 'private sector'
despite the astronomical salaries paid to staff in Washington
and by extension to the Scottish Enteprise 'secondee' who is parachuted in to tell them how to run the world ...... along with
the 15,000 other employees who get to Washington on merit.

But after such heavy public sector investment in the career development of these top guys and gals at " the best wee
Quango in the world" the Scottish taxpayer presumably is
entitled to expect the secondees to return to share their
new found expertise with colleagues at Atlantic Quay?

In the case of Robert Crawford, however, on his return
he left the public sector - to join Ernst & Young - having
'talked his price up' no doubt by pointing to the 'market
value' of his workmates in DC? Ernst& Young saw this
as a bargain, no doubt - not least given that Crawford
had previously been the Director of Locate in Scotland
and also Director of Operations at Scottish Enterprise.
Ideally place to take private clients through the hoops?

But then a vacancy occurs back in his old workplace as
CEO and he returns triumphant - and naturally expects
his former employer not to be able to match his 'private
sector salary'? No: this man is a true hero and he takes
a very public salary CUT - bringing him back down to the
'highest public sector salary in Scotland at the time' - I
can't recall the precise figures but with all the bonuses
it hovered just under £200K - when he finally resigned!
(to take a job with The Wood Group in Aberdeen that is
run by the former Chairperson of Scottish Enteprise Inc).

Step forward at that point his new/old boss at Ernst &
Young whose background was as a lobbyist for CBI ?

And he too is a hero prepared to take over a poisoned
chalice for yet another massive pay cut taking him too
down to ..... yes you guessed ..... just under the £200K
vacated by his protege ........ Top management at SE is
then reorganised yet again and much blood is spilled,
with consequent implications for the golden handcuffs
and the pension pots of those getting the golden chop.

Step forward at that point Lena Wilson - just back from
her lucrative, pay-enhancing US 'secondment' in DC -
and of course she too needs 'compensation' after her
Scottish Enterprise-sponsored time at the World Bank
quangocracy. Having hand-bagged all the other talent,
she too stuffs another six-figure sum into her account
as Scottish Enteprise Director of Operations plus 26%.

Quite galling for those of us who have never got past the front desk at Scottish Enterprise - but have worked for the IMF in Washington
after an open contest, and gaining a place in 19th Street on merit.
Posted by: Digory, Narnia on 5:43pm Sat 8 Sep 07

There are also Companies who have been encouraged to expand or change direction.

When they go bust Scottish Enterprise etc. get first call not the Businesses to whom they owe money.

Plus this gives potential for an easy buy out of the First Company.

How is this supporting the Business Sector?
Posted by: doris on 6:05pm Sat 8 Sep 07
but we are told that this is one of the world's most successful economic development agencies - so the senior management team must be worth their big packages, or their even bigger bosses would have put a stop to it long ago.

I suspect the 'moaning minnies' on this forum are just plain jealous that they don't have £200k salary and all the perks that go with working at SE.

Maybe the social workers and midwives should stop moaning about low pay and retrain as economic development consultants.
Posted by: neil, dundee on 10:39pm Sat 8 Sep 07
None of these people have ever been 'market-tested'. The senior positions at Scottish Enterprise have never been advertised. It is
no suprise at all that the senior ranks are stuffed with mediocrity.
Posted by: neil, dundee on 10:42pm Sat 8 Sep 07
And just for the record: the former CEO of Scottish Enterprise Glasgow (Ron Culley) who fell out of favour with Atlantic Quay
but was at least dynamic and successful was a former social
worker with Strathclyde Regional Council. Not a moanin mini!
Posted by: neil, dundee on 10:50pm Sat 8 Sep 07
And of course the new Lord Provost of Glasgow is a former Director of Social Work with Strathclyde Region - now leading Glasgow's regeneration effort for a modest local councillor's allowance of
roughly 10% of the salaries being paid out to these SE plonkers.
Posted by: neil robertson, dundee on 12:04am Sun 9 Sep 07
The really striking contrast is with managers of integrity - such as Louis Gallois in France who was the CEO of SNCF the French rail
company and won over the trade unions and employees with his modest style and modest level of remuneration - which was not
much more than middle-ranking executives at Scottish Enterprise
take home ie round about Euro 150,000. On leaving SNCF to take
on one of the most challenging jobs in European industry (sorting out the problems of the European Airbus Company) he agreed to do it on the basis that he got his railway salary as CEO of the company
he then joined. Presumably the free-railpass was worth quite a lot!
Now that shows real management style - and the SNCF workforce
showed their appreciation by turning out with guard's flag and their
whistles to wave him off and send him on his way as Airbus CEO.

The only comparable example I can think of in Scotland is perhaps
Sir Charles Gray - a former Scotrail singalman - who used to run the biggest local authority in western europe (Strathclyde Region which had 105,000 employees) for his attendance allowances as Council Leader - which never amounted to much more than £8,000 a year.
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