Glasgow City Council: 'No independent scrutiny' of £1m exit packages for senior council staff

Key Points

Five senior officers at Glasgow City Council received exit packages totalling £1.035m between 2021 and 2024
Independent investigation found no evidence to conclude any recipient acted ‘improperly’
But the Accounts Commission has found there was no independent scrutiny of the restructuring plan
It had been intended to sabe hundreds of thousands of pounds, but it’s not clear it was value for money, the watchdog said

Five senior officers at Glasgow City Council received exit packages totalling more than £1m without any independent scrutiny, a report has found.

A watchdog has found officers who approved the restructure benefitted directly from it, raising concerns about conflicts of interest.

Although the plan was meant to save the council hundreds of thousands of pounds, Scotland’s council watchdog, the Accounts Commission, found it wasn’t clear it was value for money.

In 2021, the restructuring plan was drawn up which included the early retirement of chief executive Annemarie O’Donnell, who stepped down in May 2024.

Her departure was described as an “efficiency”, despite a replacement being appointed, and the rationale was unclear and poorly documented.

Along with Ms O’Donnell, four other senior bosses left the council as part of the same process, costing more than £1m in payouts and pension enhancements.

When details of the costs were reported to a council committee, an internal review was ordered by the new chief executive.

Law firm Brodies LLP was asked to carry out the investigation.

Earlier this year, Ms O’Donnell agreed to repay more than £300,000 in pension funds her early retirement had cost.

The Accounts Commission, on Thursday, again criticised the handling of her departure, including the lack of involvement from elected councillors.

Council rules state that elected members should be consulted on decisions judged to be “politically controversial”.

The report said: “What can be considered politically controversial is a judgment.

“However, it is reasonable to consider the early retirement of the chief executive on efficiency grounds, and the operational and financial implications of this, could meet this description, and it is not clear what consideration was given to this issue.

“The independent review concluded that officers should have referred the restructure report to the relevant city convener for consultation as a matter of potential political controversy.

“Councillors do not, however, appear to have been involved in the decision-making or approval processes for the exit packages for any of the five senior officers, including the chief executive.

“There is no evidence of the proposals and terms being discussed with councillors and the restructure report was not shared with councillors or presented at committee for approval.”

The watchdog also suggested the restructuring plan “appears to have been approved by some individuals who then benefitted from its proposals”.

An independent investigation found no evidence to conclude that “any recipient of any severance/retirement
package, or any other officer, acted improperly”.

Accounts Commission deputy chairman Andrew Burns said: “The actions taken by a group of senior staff at Glasgow City Council fell short of the values and principles every public sector worker and councillor are expected to follow.

“There was a failure to address and document how potential conflicts of interest were considered.

“A failure to demonstrate how the guiding principles of working in the public sector – in particular selflessness, integrity and objectivity – had been applied.

“It is alarming to see reports which need to consider the lawfulness of actions within councils, and such circumstances do little to reassure taxpayers about how public money is being used.”

Mr Burns said that all councils need to undertake restructuring in the face of financial pressures, increasing demand and ageing workforces.

But, he said, the Accounts Commission would write to all local authority chief executives and leaders to highlight the issues in its report.

Glasgow City Council has been contacted for comment.

Scottish Conservative local government spokesman Craig Hoy said the report “could hardly be more damning” for the council.

“Glasgow’s SNP-run council rode roughshod over the rules and, as a result, departing officials received eye-watering payouts with little to no oversight.

“It’s sadly typical of the way in which the nationalists conduct themselves in office, with a worrying lack of accountability or concern for taxpayers’ money, while putting the interests of themselves and their cronies first.”

Council leader Susan Aitken and treasurer Ricky Bell – both SNP members – had raised serious concerns about the exit packages.

Hoy added: “Glaswegians will be rightly furious that, while the SNP administration is slashing essential services and imposing inflation-busting council tax hikes, it found huge sums to hand out to fat-cat bureaucrats.”