The Office of the Scottish Charity Register (OSCR) has ruled this week that a discretionary redundancy payment of £232,708 should not have been paid to the chief executive of a charity in the process of winding up.
A severance package was offered to the chief executive of the charity consisting of three elements. The first was a statutory redundancy payment which the charity was required to pay. The second was a payment to the chief executive's pension scheme which was an agreed condition of employment and therefore this payment was also required. The final element consisted of a discretionary payment to augment the chief executive's period of membership of the pension scheme and the OSCR found that this element was agreed by the charity trustees in recognition of his role within the charity.