Public acceptance of charity investment in staff is “highly conditional” with chief executive pay emerging as a “focal symbol of mistrust”, according to research published by the Charity Commission.

The research, which involved focus groups with the public to assess their trust in civil society, found that high chief executive pay is “not just a cost issue but as a perceived misalignment with charitable values”.

Researchers said that “several participants” perceived high charity CEO salaries as “appalling” and “ridiculous” and said that those leading charities “should not be earning figures comparable to the private sector”.

One said: “The average CEO for a [large] charity gets the best part of £200,000 a year, which is appalling in my eyes, nobody should be working for a charity getting paid that level of money.”

Another said: “It would affect my willingness to donate, as does the knowledge that CEOs get paid that fat cat salary because you do feel like you’re funding their BMW or whatever.”

Confidence concerns

Concerns from the public around CEO pay is part of a wider “tolerance for overheads” among the public, but only when “impact and restraint are visible”, found the research.

“Where overheads appear excessive or poorly justified, they can undermine confidence. Strong opposition to paying trustees also underscores a broader public expectation that charity roles should be values-based,” found the research.

Overall trust in the sector has “held steady” over the last six years, researchers found, with almost three in five “having high trust” for charities.

But researchers also note a “small rise in those with low trust in charities” from just under one in ten in 2024 to just over one in ten this year.

“Those with less contact with charities and lower awareness of the Commission are more likely to have low trust. This reinforces the link between visibility, understanding and trust,” say researchers.

They add that “money reaching the end cause remains the most important driver of trust”.

---