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Reduction in the the Andium Homes CEO salary

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WQ.517/2019

WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES

BY DEPUTY M.R. LE HEGARAT OF ST. HELIER

ANSWER TO BE TABLED ON MONDAY 25th NOVEMBER 2019

Question

Is the Minister intending to force a reduction in the Andium Homes C.E.O.'s salary and, if so, what advice, if any, has she sought regarding whether this would breach both his contract and the Employment Law of Jersey?

What is the potential financial and reputational cost of reducing the salary and how does this compare with the cost of agreeing his current salary until his contract expires in 2021?

Answer

This question appears to be a duplication of one asked by the Deputy during the Minister for Treasury and Resources' Questions without notice on 12th November 2019.

As stated during that question session, a new acting Chair has been appointed at Andium Homes with a specific remit to resolve the ongoing issue in relation to the CEO's annual salary. The Assistant Minister (to whom all shareholder responsibilities are delegated) maintains that the recent increases in Executive remuneration were not approved by the Guarantor in accordance with the Memorandum of Understanding that exists between the two parties and this matter needs to be resolved.

The Assistant Minister is fully briefed on this matter, although would highlight that any contract matters would be between the employee and the employer (Andium Homes), not the Assistant Minister as delegated Guarantor, although the Minister fully acknowledges the role she plays as the Guarantor of the company.

Until such time as the acting Chair brings forward a proposal for consideration the Minister is unable to respond to the second question posed.