MAT executive pay to be linked to Ofsted ratings

Academy trusts will be expected to consider pupil outcomes, Ofsted ratings, levels of disadvantage and their financial health when deciding executive pay, under new Department for Education guidance.

The DfE has published the detailed framework explaining how its new controls on academy executive salaries will work, including the evidence that trusts will have to provide if they want to pay above the new thresholds.

The government confirms that trusts should allow a minimum of 20 working days for the DfE to make a decision on pay applications when planning recruitment.

The DfE announced in June that trusts would need approval before advertising new appointments with remuneration above £174,000, or performance-related pay above £25,000. They will have to apply for this approval.

Approval will also be needed where trusts want executive remuneration to increase faster than teacher pay, the DfE has said.

Experts previously told Tes that the framework could make it harder for multi-academy trusts to recruit successful heads into chief executive roles, flatten pay differences between leaders and turn the government approval threshold into an effective salary ceiling.

DfE guidance on MAT executive pay

Here are the key details in the guidance published today:

Exam results and Ofsted will be considered

Trust boards have been told to consider the trust’s academic performance in executive pay decisions.

They should consider pupil outcomes, the amount of improvement required and progress towards improvement. The DfE points trusts towards exam results and Ofsted ratings as potential evidence.

The guidance says boards should make “appropriate adjustments” to remuneration where expectations are not being met.

‘Educational challenge’ justification

Trusts should also consider the level of “educational challenge” that their schools face, the DfE says.

This could include the proportion of pupils with special educational needs and disabilities, the number eligible for free school meals, the number of pupils who speak English as an additional language, deprivation levels, and the number of looked-after children.

The DfE encourages boards to consider whether these challenges are significantly greater than those faced by similar trusts locally.

Other factors could include MAT expansion, restructuring, intervention, community responsibilities or other demands on the executive role.

Trust finances

Trust boards must also consider whether executive remuneration is affordable based on the trust’s financial circumstances.

The guidance says trusts should examine their deficit or surplus, financial forecasts, auditors’ findings and whether additional financial support has been required.

When reviewing existing pay, boards should consider whether the trust has delivered against its financial forecasts and whether it expects to run deficits over the next three years.

Teacher pay comparison

The DfE has also clarified how executives’ pay should increase relative to teacher pay, after first announcing that their pay must not increase by more than the annual teacher pay award.

MATs must now calculate the average percentage increase received by teachers within their own trust, including pay progression and other remuneration changes, in addition to the annual pay rise.

And boards will have to explain how they calculated the figure if challenged.

Even where an executive’s employment contract stipulates a larger rise, the trust must apply for DfE approval, although the government says it will not make decisions that override existing contractual arrangements.

Tes previously revealed that headteachers at local authority-maintained schools were earning up to £240,000.

And 145 MAT employees received more than £170,000 in 2024-25, including around 80 CEOs, according to Tes analysis of financial accounts in July.

20 working days for decisions

Applications for pay above £174,000 will be considered by the DfE’s regional teams, which can request further evidence through the regional director’s office before a decision is issued.

The DfE says trusts should allow a minimum of 20 working days for a decision, and submit applications “at the earliest opportunity”.

It advises MATs to ensure that appointments remain conditional on approval and to consider employment advice on how adverts are worded.

Trusts refused permission can request reconsideration within two months, but generally only where new evidence has emerged or they put forward a lower pay proposal.

Beyond headline salary

The DfE will assess the entire remuneration package, including salary, allowances, pension arrangements, benefits and salary-sacrifice schemes. Performance-related pay will be assessed separately.

It will also examine benchmarking against comparable trusts, what the previous postholder earned and the salaries of employees reporting to the executive.

However, trusts should not assume that a successor will automatically receive the same package as their predecessor.

Trusts are asked to consider the executive salary per pupil, the total cost of the leadership team, and the gap between the highest- and lowest-paid employees.

Boards must consider how a salary could withstand public scrutiny, including media interest, and whether the level of pay can be publicly justified.