Remuneration and Staff Report

Remuneration report

Remuneration policy

The remuneration of senior civil servants is set in accordance with the rules set out in chapter 7.1, Annex A of the Civil Service Management Code and in conjunction with independent advice from the Senior Salaries Review Body (SSRB). In reaching its recommendations, the SSRB is to have regard to the following considerations:

• the need to recruit, retain, motivate and, where relevant, promote suitably able and qualified people to exercise their different responsibilities
• regional/local variations in labour markets and their effects on the recruitment, retention and, where relevant, promotion of staff
• government policies for improving the public services including the requirement on departments to meet the output targets for the delivery of departmental services
• the funds available to departments as set out in the Government’s departmental expenditure limits
• the Government’s inflation target.

Performance-based pay awards are based on an assessment of performance against objectives agreed between the individual and line manager at the start of the reporting year. Performance will also have an effect on any bonus element awarded. In line with Scottish Public Sector Pay Policy, there will be no non-consolidated performance payments.

The remuneration of staff below senior civil service level is determined by the Scottish Government. In determining policy, account is taken of the need for pay to be set at a level, which will ensure the recruitment, retention, and motivation of staff. Also considered is the Government’s policy on the Civil Service and public sector pay and the need to observe public spending controls.

Service contracts

The Constitutional Reform and Governance Act 2010 requires Civil Service appointments to be made on merit on the basis of fair and open competition but also includes the circumstances when appointments may otherwise be made.

Unless otherwise stated below, the officials covered by this report hold appointments, which are open-ended. Early termination, other than for misconduct, would result in the individual receiving compensation as set out in the Civil Service Compensation Scheme.

Further information about the work of the Civil Service Commissioners can be found at Home – Civil Service Commission (independent.gov.uk)

Whilst Transport Scotland does not have a Board with non-executive directors, the Audit and Risk Committee has three external members to ensure independent oversight and challenge: John Matheson – appointed as chair in July 2017; Graeme Dickson – appointed on 7 March 2021; and Lesley MacLeod – appointed on 1 August 2021.

Remuneration group

Remuneration for Transport Scotland’s senior civil servants is considered by the Scottish Government’s Remuneration Group. This Remuneration Group has six members, two of whom are non-executive Directors.

Their remit is to consider:

• annual pay proposals for chief executives and board members and make recommendations to Ministers
• annual guidelines for flat rate increases for chief executives and senior civil servants and consider the Public Sector Pay policies which will apply for the annual pay round and make recommendations to Ministers
• pay remits which look at pay proposals for public bodies in Scotland

The Remuneration Group will, as a minimum, report annually to the Scottish Government Strategic Board

The following section of the Remuneration Report pertaining to salaries and pensions is subject to audit.

Directors’ remuneration (salary, benefits in kind and pensions)

The single total figure of remuneration, comprising the salary and the value of any bonuses or taxable benefits in kind of the directors for the year 2023-24, along with comparative figures are shown in the table below.

Accrued pension benefits for all directors with one exception are not included in this table for 2023-24 due to an exceptional delay in the calculation of these figures following the application of the public service pensions remedy.

Director	Salary £000s		Bonus £000s		Benefits in Kind £000s		Pension Benefits £000s		Total £000s
2023-24	2022-23	2023-24	2022-23	2023-24	2022-23	2023-24	2022-23	2023-24	2022-23
Fiona Brown (Interim) (Transport Strategy & Analysis)	85-90	75-80	-	-	-	-		32	85-90	110-115
Morna Cannon (Interim) (Low Carbon Economy joined 1 May 2023)	75-80	-		-		-		-	75-80	-
Gary Cox (Interim) (Aviation, Maritime, Freight & Canals joined 1 May 2023)	75-80	-		-		-		-	75-80	-
Hugh Gillies (Roads)	85-90	85-90	-	-	-	-		0	85-90	80-85
Alison Irvine (Interim Chief Executive)	100-105	0-5	-	-	-	-		1	100-105	0-5
Stuart Leggett (Interim) (Roads until 30 September 2023)	40-45	80-85	-	-	-	-		22	40-45	105-110
Roddy Macdonald (Ferries)	85-90	25-30	-	-	-	-		0	85-90	15-20
Bill Reeve (Rail)	115-120	110-115	-	-	-	-	12	0	130-135	15-20
Lawrence Shackman (Major Projects)	85-90	80-85	-	-	-	-		16	85-90	95-100
Bettina Sizeland (Bus, Accessibility and Active Travel)	85-90	85-90	-	-	-	-		23	85-90	105-110
Kerry Twyman (Finance and Corporate Services)	105-110	95-100	-	-	-	-		26	105-110	125-130

Single total figure of remuneration

In respect of the included information the value of pension benefits accrued during the year is calculated as the real increase in pension multiplied by 20, less the contributions made by the individual. The real increase excludes increases due to inflation or any increase or decrease due to a transfer of pension rights.

Morna Cannon moved to the post of interim Director of Low Carbon Economy on 1 May 2023. The £75-80k for year 2023-24 represents salary from 01 May 2023 to 31 March 2024. 2023-24 full year equivalent banding would be £85-£90k.

Gary Cox moved to the post of interim Director of Aviation, Maritime, Freight & Canals on 1 May 2023. The £75k-£80k for year 2023-24 represents salary from 01 May 2023 to 31 March 2024. 2023-24 full year equivalent banding would be £85-£90k.

Stewart Leggett left post as interim Director of Roads on 30 September 2023.

Salary

Salary and allowances cover both pensionable and non-pensionable amounts and include gross salaries; overtime; recruitment and retention allowances; private-office allowances or other allowances to the extent that they are subject to UK taxation. This total remuneration is shown in the figures in the table on the previous page. It does not include employers’ pension contributions or amounts which are a reimbursement of expenses directly incurred in the performance of an individual’s duties or employers’ national insurance.

Where a Director has joined or left Transport Scotland during the year, their salary reflects only that which they received whilst a member of the senior management team. Where an individual has been a member of the senior management team for only part of the year, but they have been employed by the Agency throughout the year, their annual salary has been reported on a ‘days served’ basis as well as the full year equivalent salary.

Any amounts payable on early termination of a contract will be in accordance with the individual’s circumstances.

Fees

External members of the Audit and Risk Committee are entitled to receive fees for regular attendance at Audit and Risk Committee meetings. External members’ expenses incurred in attending these meetings are also reimbursed.

The fees which the external members of the Audit and Risk Committee were entitled to for 2023-24 are as follows:

• John Matheson £243 daily rate
• Graeme Dickson £243 daily rate
• Lesley Macleod £243 daily rate

The remuneration of the Transport Scotland external members were as follows.

Name	Title	Fees £000
2023-24	2022-23
John Matheson	External Member ARC	5-10	5-10
Graeme Dickson	External Member ARC	0-5	0-5
Lesley Macleod	External Member ARC	0-5	0-5

This is in line with Scottish Government remuneration of external members.

Pay multiples

There was an extension to the Fair Pay Disclosure in 2021-22. In addition to the median pay ratio, the relationship between the remuneration of the highest-paid director in the organisation and the median remuneration of the organisation’s workforce, we must also now disclose:

• the percentage changes for the highest-paid director and the workforce, and
• the ratio of the highest-paid director to the interquartile ranges 25% and 75% within the workforce.

The calculations include directly employed staff paid through SG Core payroll and cover both permanent staff and those on fixed term contracts. They also include Agency Temporary employees who are covering staff vacancies. They do not include consultant’s costs.

The full year equivalent banded remuneration of the highest-paid director was £115k – £120k (2022-23: £110k – £115k). Please note the below year to year comparisons in relation to the highest-paid director.

• This was 2.4 times (2022-23: 2.5) the median remuneration of the workforce, which was £48,031 (2022-23: £44,765).
• This was 3.2 times (2022-23: 3.4) the 25th percentile of the workforce, which was £37,156 (2022-23 £33,120).
• This was 1.9 times (2022-23: 1.9) the 75th percentile of the workforce, which was £62,969 (2022-23: £57,722).

The Highest-Paid Director pay ratio to all compared ranges has reduced which is attributable to an increase in the pay and benefits of the workforce as a whole. We believe the median pay ratio for 2023-24 is consistent with the pay, reward, and progression policies of the workforce as a whole. These costs relate wholly to salaries and the ratios are in line with the general pay policy. A summary of the information highlighted in the table below.

Pay Ratios
Year	Midpoint £	Median £	Ratio	25 Percentile £	Ratio	75 Percentile £	Ratio
2023-24	117,500	48,031	2.4	37,156	3.2	62,969	1.9
2022-23	112,500	44,765	2.5	33,120	3.4	57,722	1.9

Changes in year

The average percentage change of 4% increase, as can be seen in the tables below, across all employees as a whole, is a consequence of the impact of the 2023-24 pay award.

2023-24 Total Salary £	2023-24 Average FTE	Average Salary per FTE	2022-23 Total Salary £	2022-23 Average FTE	Average Salary per FTE	Average Percentage Change
TS Employees	28,702,976	515	55,756	26,763,621	499	53,624	4.0%

In 2023-24, no employee received remuneration in excess of the highest-paid director (2022-23: none). Remuneration across Transport Scotland ranged from £22k – £117.5k (2022-23: £22k – £112.5k).

2023-24 Midpoint £	2022-23 Midpoint £	Percentage Change
Highest-Paid Director	117,500	112,500	4.4%

Total remuneration includes salary, non-consolidated performance-related pay and benefits in kind. It does not include employer pension contributions and the cash equivalent transfer value of pensions.

Civil Service and other Compensation Scheme

Within Transport Scotland, no members of staff agreed departures under the Civil Service Compensation Scheme rules in 2023-24. There were no members of staff who agreed departures under the scheme in 2022-23.

Three members of staff retired on ill health grounds in 2023-24. (2022-23: three.)

Pensions

Accrued pension represents the Director’s total future entitlement to benefits payable from the Civil Service pension schemes based on reckonable service on 31 March 2024. The accrued pension includes service prior to becoming a Director and/or service in other departments.

A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised value of the pension scheme benefits accrued by a member at a particular point in time. The benefits valued are the members’ accrued benefits and any contingent spouse’s pension payable from the scheme. A CETV is a payment made by a pension scheme or arrangement to secure pension benefits in another pension scheme or arrangement when the member leaves a scheme and chooses to transfer the benefits accrued in their former scheme.

The pension figures shown relate to the benefits that the individual has accrued as a consequence of their total membership of the pension scheme, not just their service in a senior capacity to which disclosure applies.

The figures include the value of any pension benefit in another scheme or arrangement, which the member has transferred to the Civil Service pension arrangements. They also include any additional pension benefit accrued to the member as a result of their buying additional pension benefits at their own cost. CETVs are worked out in accordance with The Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2008 and do not take account of any actual or potential reduction to benefits resulting from Lifetime Allowance Tax which may be due when pension benefits are taken.

The real increase in CETV quoted in the table below represents the increase that is funded by the employer. It does not include the increase in accrued pension due to inflation, or contributions paid by employees (including the value of any benefits transferred from another pension scheme or arrangement) and uses common market valuation factors for the start and end of the period.

Further details on the different schemes available to employees can be found in Note 2 to the accounts.

Accrued pension benefits for all Directors, with one exception, are not included in this table for 2023-24 due to an exceptional delay in the calculation of these figures following the application of the public service pensions remedy.

Lump Sum at NRA as at 31 March 2024 £000	Real Increase in Lump Sum at age NRA £000	Accrued Pension at age NRA as at 31 March 2024 £000	Real Increase in Pension at age NRA £000	CETV as at 31 March 2024 £000	CETV as at 31 March 2023 £000	Real Increase in CETV in 2023-24 £000
Fiona Brown						134
Morna Cannon						-
Gary Cox						-
Hugh Gillies						626
Alison Irvine						259
Stewart Leggett						400
Roddy Macdonald						744
Bill Reeve	0	7.5 - 10	60 - 65	0 – 2.5	1,518	1,522	73
Lawrence Shackman						595
Bettina Sizeland						359
Kerry Twyman						466

Calculated on normal retirement age (NRA) where pension entitlement is due at that age or current age if over NRA.

The value of pension benefits accrued during the year is calculated as (the real increase in pension multiplied by 20) plus (the real increase in any lump sum) less (the contributions made by the individual). The real increases exclude increases due to inflation or any increase or decreases due to a transfer of pension rights.

Further details about the Civil Service pension arrangements can be found at the website Home – Civil Service Pension Scheme.

Staff report

Equality, diversity, and inclusion

Our ambition is to be a world-leading, diverse, and inclusive employer where people can be themselves at work. We are committed to building a workforce of people with a wide range of backgrounds, perspectives, and experiences, who are valued for their unique contributions in an environment that is respectful, supportive, and free of discrimination, harassment, or bullying. Over the past two years, the Scottish Government’s strategic equality outcomes have continued to drive changes to what we do and how.

The Scottish Government is committed to tackling inequalities in Scottish society and knows that having a diverse workforce is key to this. As an agency of the Scottish Government, we also know that the value of this diversity can only be realised through acknowledging and removing barriers that prevent people from flourishing, and continuing to build an inclusive culture where everyone is valued because of the unique perspectives they bring, whilst also feeling a strong sense of belonging to the Scottish Government as an employer.

We are committed to increasing the diversity of our workforce and to ensure every colleague sets a diversity objective as part of their

annual objectives. We encourage all colleagues to increase their diversity understanding through learning activities and accessing all of our diversity networks, and to ensure that everyone can link with an appropriate Diversity Champion in their area. We also direct colleagues to the provisions within the Equality Act 2010, so that they can fully understand how this affects their rights and responsibilities and ensure they know how to access support at all times.

Non-discrimination and equality of opportunity are cornerstones of our approach to pay and reward. We are committed to advancing equality of opportunity in the workplace regardless of protected characteristic or other reason (sex, marital/civil partnership status, age, race, ethnic origin, sexual orientation, disability, religion or belief, gender identity (Trans status), socio economic background, working pattern, employment status, caring responsibilities, or trade union membership).

The Department for Work and Pensions is responsible for developing, formulating, and disseminating equal opportunities guidance for the Civil Service as a whole, but operational responsibility rests with individual departments.

The table below identifies the gender split within Transport Scotland for the year 2023-24.

2023-24
Gender	CEO and Directors	Employees	Total
Female	5	273	278
Male	5	304	309
Total	10	577	587

2022-23
Gender	CEO and Directors	Employees	Total
Female	4	273	277
Male	5	328	333
Total	9	601	610

Staff relations

We give a high priority to the development of all our staff. Training, development, and learning opportunities are all regularly reviewed, content checked and updated to reflect valued staff feedback.

We recognise that the success of any organisation depends largely on the effective performance and full attendance of all its employees. People are a valued resource, and as an employer, our attendance management procedures are designed to maintain a happy, well-motivated and healthy workforce.

The aim of the procedures is to:

• be supportive and positive
• promote fair and consistent treatment for everyone
• encourage, assist, and make it easy for people to stay in work
• explain employees’ entitlements, roles, and responsibilities.

The Annual People Survey is run across the UK Civil Service and the contract and survey design is managed by the Cabinet Office.

All colleagues are encouraged to participate and to inform on what is working well and what could be improved across the organisation. We receive our own set of headline and directorate results from the survey.

The engagement index for the Civil Service People Survey (CSPS) 2023 survey was 59%. Our results across the headline categories saw an increase in My Manager and also Learning and development. All other headline categories have decreased, in comparison to the previous year.

The highest-scoring criteria in 2023 results were My Work (83%), My Team (81%) and My Manager (78%). Staff responses continue to help us to identify and develop actions and improvements to make Transport Scotland a great place to work for everyone, and we provide regular updates on our progress against all actions.

Wellbeing continues to be a top priority, and whilst our environment has changed considerably in the last few years, we place significant importance on staying connected and matching resources to increasing demands. We will continue to respond appropriately and help to support a good work-life balance for our colleagues.

In 2023-24 an average of 8 working days (2022-23: 9.1) were lost due to sickness absence per staff year for Transport Scotland. This compares to an average of 8.16 working days lost due to sickness absence in core Scottish Government in 2023-24.

In 2023-24, the percentage turnover for Transport Scotland permanent staff was 5.71% (2022-23: 6.75%). There were 31 leavers within the period, and an average headcount of 536 permanent staff. This compares to a percentage turnover of 4.38% in core Scottish Government in 2023-24, and an average headcount of 9,246 permanent staff.

Health and safety

Transport Scotland is committed to achieving the highest standards of health, safety and wellbeing for our staff, visitors, contractors, and any others who may be affected by our acts or omissions. We continually engage to promote positive health and safety climates and organisational culture, and we seek improvement through role specific and compulsory health and safety training and e-learning, which in turn is supported by the IOSH Chartered Health & Safety Adviser and Health & Safety Liaison Officers. We also have a bespoke and robust health and safety management system, which is set out clearly within our policy manual. This provides guidance on roles, responsibilities, and proposals for achieving our health, safety, and wellbeing goals, all of which are in alignment with Scottish Government Occupational Health & Safety strategies.

Trade union membership

Transport Scotland values strong employee relations and has a Partnership Board in place. Our Partnership Agreement sets out the terms of reference for the Board in matters affecting staff.

The Board itself is made up of Transport Scotland management, with a representative from Human Resources as well as representatives from the Scottish Government Trade Unions. The Board meets on a quarterly basis throughout the year, or additionally on request by Board members.

Details of Scottish Government’s trade union facility time including Transport Scotland are published on the Scottish Government website. In future years, we will publish information relating to Transport Scotland separately.

Employment of disabled persons

We are a ‘Disability Confident Leader Employer,’ which recognises our commitment and our positive attitude towards removing the barriers faced by disabled people. Our Recruitment and Retention Plan for Disabled People 2019 sets out the actions we are taking as an employer to support more disabled people into work in Scottish Government and to enable existing disabled employees to thrive and succeed at work.

In doing so, we offer interviews to all disabled applicants and staff who meet the minimum criteria for any post; equip line managers to understand and take action in respect of their management responsibilities; implement workplace adjustments to enable disabled employees to thrive; have appointed Disability Champions at Senior Civil Service level and at Executive team level; and our Disabled Staff Network and our Mental Health Network are critical to our strategic approach to advancing diversity and inclusion, offering rich insights into lived experience and building empathy and understanding.

The number of staff as at 31 March 2024 who had declared a disability employed by Transport Scotland was 57 (2022-23: 50).

Staff numbers and costs

Details of staff costs for the year are contained within Note 2 to the Accounts. Transport Scotland incurred £39.2 million in relation to staff costs in the year 2023-24 (2022-23: £39.1 million). Of this, £38.3 million was in relation to permanent staff, who are civil servants with an employment contract with Transport Scotland (2022-23: £37.6 million). The balance of £0.9 million related to agency staff (2022-23: £1.5 million).

The costs of staff employed on the design, procurement and management of capital projects undertaken by Transport Scotland, totalling £5.1 million (2022-23: £5.4 million) have been charged to capital expenditure in respect of the projects identified in the year, and these costs are included with the project costs in Note 4.

In addition to the staff costs for the year contained within Note 2 to the accounts, the agency paid out £11.6 million in professional consultancy costs in 2023-24 (2022-23: £12.1 million) in relation to professional services required in the procurement of key projects and the delivery of the Agency’s transport objectives.

At the end of financial year 2023-24, Transport Scotland’s headcount totalled 587, analysed in the table below.

Staff Category	Headcount at 31 March 2024	Headcount at 31 March 2023
Permanent Staff	536	536
Agency Staff	7	19
Consultants Employed	44	55
Total	587	610

The full time equivalent (FTE) figure of Transport Scotland Permanent Staff was 515 (2022/23: 499).

2023-24	Permanent Staff (FTE)	2022-23	Permanent Staff (FTE)
AMFC	69	AMFC	58
BAAT	84	BAAT	87
Finance and Other	89	Finance and Other	66
LCE	25	LCE	29
Major Projects	50	Major Projects	47
Rail	55	Rail	59
Roads	80	Roads	96
TSA	62	TSA	58
Total	515	Total	499

Pension liabilities

The pension entitlements of the Executive Directors of Transport Scotland are contained within the remuneration report. An indication of how pension liabilities are treated in the accounts, and references to relevant pension schemes, are also contained within the Remuneration Report and in Note 2 to the accounts.