Pay of top earner at London Clinic falls significantly

The chief executive at the private hospital regularly features in the top 10 of Third Sector's annual study of the top 100 earners

The London Clinic (Photograph: LH Images/Alamy)
The London Clinic (Photograph: LH Images/Alamy)

The London Clinic, whose chief executive is one of the highest-paid employees in the voluntary sector, appears to have reduced the amount its top earner receives.

The clinic, which was founded in 1932 and is the largest independent hospital in London, regularly features in the top 10 of Third Sector's annual study of the sector's top 100 earners.

According to its latest annual report, for the year ending 31 December 2018, published last week, the highest-paid staff member, who is not identified, received between £420,000 and £430,000.

This is considerably down on the £1.3m figure in 2017, which included redundancy and termination costs.

It is also less than the sum of between £550,001 and £560,000 awarded to the highest earner in 2016.

Fifteen staff earned more than £100,000, compared with 13 last year.

Former trustee Al Russell became the clinic's permanent chief executive in April 2018 after being appointed interim chief executive when Paul Holdom resigned in September 2017.

The accounts show that the charity’s income increased by 7.9 per cent, from £136.3m to £147m, mainly because of £12.4m from the sale of property.

Revenue from hospital activities fell by 1.2 per cent to £134.6m.

Expenditure remained the same as last year at £141.4m. The number of staff fell by 60 to 1,136.

The charity recorded 22,527 patient admissions, up from 21,579 in the previous year, and a patient satisfaction rating of 98 per cent, the report says.

It says the charity’s deficit in its defined-benefit pension scheme reduced from £30.8m to £21.7m because of factors including recovery plan payments and a change of assumptions for valuing obligations.

In his chairman's statement in the report, Hamish Melville says the clinic has "gone through a challenging period requiring difficult decisions and choices".

The report also warns of potential dangers relating to Brexit.

It says leaving the European Union "may have positive and negative consequences", but adds: "A long-term reduction in the size of the City of London could have a negative impact" on business levels.

"Additionally, a no-deal Brexit could significantly impact supply chains in the short term," it says.

The report says the charity, which has 203 beds for in-patients and 10 operating theatres, has mitigated the risk by setting up a Brexit planning group.

The clinic declined to clarify details about the highest earner’s salary.

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