Council top executive claimed to have £475,000 golden handshake
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Highland Council is again in hot water after councillors claimed one former top executive got a golden handshake worth £475,529 last year.
Fresh from the controversy over paying £936 a day for an education consultant, members alleged the local authority made the payout to former community services William Gilfillan.
The sum is said it include pay in lieu of notice, redundancy costs, added years compensation, pension payments made by the council, and an actuarial valuation of the total cost of any annual added years payments that will be made to the employee in future.
The revelations emerged at the corporate resources committee after councillors read about the huge sum in the local authority’s unaudited annual accounts.
Budget leader and chairman of the committee Alister Mackinnon said the claims were "incorrect" and there was no way one individual got almost half a million pounds in severance.
Subsequently Highland News and Media saw an email from Edward Foster, the head of corporate finance, which outlined how the sum was calculated.
He wrote: “The exit disclosure figures reflect: amounts paid to the employee on the termination of their employment (e.g. pay in lieu of notice, redundancy costs, added years compensation). Pension strain costs (payments made by the council to the pension fund). An actuarial valuation of the total cost of any annual added years payments that will be made to the employee in future.”
A number of members raised the issue whether the restructuring of upper management in a bid to make be more cost effective that saw Mr Gilfillan's departure was value for money.
Councillor Andrew Jarvie said: “If you look at the Highland Council’s annual accounts there was a total payment of just under half a million pounds to William Gilfillan for termination of his contract.
“I would hope you are able to outline how it did save money because by my count £500,000 in costs (for restructuring management) and almost £500,000 for the severance comes to almost £1 million.
“I distinctly recall the chief executive saying when she joined this council that if she didn’t make it work she’d resign. So if she hasn’t made it work, can I ask when you would call for her resignation?”
Alister Mackinnon refused to go into individual settlements while throwing his support behind chief executive Donna Manson, saying: “I am not going to be discussing individual settlements here and that information is incorrect.
“What I will ensure is that I will get a report out to you detailing the settlements that are in the accounts and also a report detailing the costs before we had the reorganisation.
“But I can assure you that we have saved money in that area, I will send that out and I will make sure that it is sent to every member of this committee.
“I do not accept your comments about the chief executive, since she has come to this council she has worked tirelessly and we as an administration fully support her with the achievements to date.”
A Highland Council spokeswoman said: "Payment was made to a former director for loss of office in accordance with council policy and contractual entitlement.
"Financial details including payment to pension fund is disclosed in the council’s accounts.
