The chief executive of the health charity Nuffield Health was paid about £250,000 less last year than in the previous 12 months after missing out on a bonus, the charity has said.
The charity’s latest set of accounts show that Steve Gray, who was appointed in December 2015, was paid between £510,000 and £519,999 in the year to 31 December 2017, significantly lower than in 2016, when he was paid between £760,000 and £769,999.
A spokeswoman for the charity said the chief executive’s total remuneration included an annual bonus dependent on meeting pre-defined business targets. Because the organisation did not meet those targets, the bonus was not paid, she said.
According to Third Sector’s charity pay study last year, the charity’s previous chief executive, David Mobbs, was the second-highest earner in the charity sector, having been paid more than £1.2m in his final year at Nuffield in 2015.
Despite this year’s reduction in salary, Gray would still have made the top five of Third Sector’s 2017 study.
The charity also spent £5m on termination benefits, £4.3m of which was paid in costs "associated with exceptional reorganisations", the accounts say.
The spokeswoman said that this was due to changes made to Nuffield’s overall structure to ensure its long-term stability.
These included changes to the operating structure to create better connections between its hospitals, clinical services and fitness and wellbeing clubs, as well as bringing together the customer contact centre and employee support centre at a central contact centre and removing some roles at head office, the spokeswoman said.
Staff numbers rose from 13,672 to 16,198, the accounts show, mainly due to the acquisition of 35 Virgin Active sites.
Total income rose from £839.6m in 2016 to £909.5m in 2017, the accounts show, and total expenditure increased from £837m to £933.3m.
This means that once support costs and exceptional items are taken into account, the charity had a deficit of £23.8m, compared with a £2.6m surplus in 2016, the accounts show.