Is capping executive pay solving the right problem?

Authored by Dion Mills, Head of Executive Recruitment, Edwin People.

The publication of the Academy Trust Handbook 2026 has understandably drawn attention to the Department for Education's increased scrutiny of executive pay.

From October, trusts will require DfE approval before advertising leadership posts with remuneration above £174,000, while executive pay increases above the rate of teacher pay awards will also require approval. 

The objective is easy to understand, academy trusts are publicly funded organisations, and transparency, accountability and value for money matter.

Most people would agree with that.

But as someone working in executive recruitment, I find myself asking a slightly different question:

Will tighter controls on executive pay strengthen the leadership market, or further constrain it?

Education leadership has changed dramatically over the past decade.

Many trust CEOs are now responsible for organisations employing hundreds, sometimes thousands, of staff, managing multi-million-pound budgets, overseeing complex estates, leading school improvement across multiple communities and navigating ever-increasing regulatory expectations.

Yet public discussion around executive pay often focuses on the salary figure rather than the scale of responsibility attached to the role.

The challenge for boards is not just determining what is affordable, it is determining what is necessary to attract and retain exceptional leadership.

That becomes particularly relevant when we consider the wider leadership pipeline.

If fewer senior leaders aspire to CEO and executive roles, does greater scrutiny of remuneration make those positions more attractive or less attractive?

And if the answer is less attractive, what does that mean for the long-term supply of talent into the sector?

None of this is an argument for excessive pay.

Far from it.

Strong governance requires robust challenge, evidence-based decision making and clear justification of remuneration. Those principles are entirely reasonable. 

But there is a difference between ensuring pay is proportionate and creating barriers that make recruitment more difficult.

The best boards will continue to focus on a fundamental question:

What level of leadership capability does our organisation need, and how do we attract it?

Because ultimately, the debate should not be about whether a salary figure looks high in isolation.

It should be about whether trusts can attract and retain the calibre of leaders needed to improve outcomes for children and young people.

As the new framework takes effect, it will be interesting to see whether it achieves its intended purpose, or whether it creates new challenges in an already complex leadership market.

For trusts considering these questions, the DfE has also published guidance on setting executive salaries, providing a framework for boards when determining and justifying executive remuneration. DfE guidance update 29/9/26 

I’d be interested to hear others’ views:

Is increased control of executive pay a necessary step towards accountability, or could it have unintended consequences for leadership recruitment and succession planning?

If your trust is reviewing its approach to executive pay, recruitment, retention or succession planning, our team can provide independent advice and support tailored to your context.