The Housing Corporation has defended itself against allegations that it gave its former chief executive a £142,817 pay-off.
Reports last week said the quango paid its former head Norman Perry £106,738 as compensation for losing his job and put an extra £36,079 into his pension scheme.

The allegations came a week after the corporation released guidelines to curb excessive severance pay and bonuses to housing association bosses (HT 2 July, page 12).

One sector expert commented: "I wonder if he signed his own special determination [to permit the payment]? It's a bit rich that they're saying 'do as I say, not as I do'. "

The corporation countered that new chief executive Jon Rouse had been appointed on a permanent contract, not a fixed-term deal like the one used for Perry. Also, Rouse took the job for £25,000 less than he was offered.

The corporation said: "Norman Perry was appointed on a fixed-term contract in 2000. The severance payments reflect the terms of that contract, and subsequent legal advice, and were agreed with the ODPM as our sponsor department.

"We have since reviewed our arrangements and, in line with current good practice, Jon Rouse has a permanent contract.

"Our guidance on pay and rewards for senior housing association executives is not a statutory regulatory requirement but an advice note issued in direct response to requests from association boards for clear guidelines."

Source

Housing Today