Headhunting executive public sector recruiter Solace Enterprises was “contributing to burgeoning pay packets for chief executives”, according to The Sunday Times newspaper.

The Sunday Times reports that Solace Enterprises has helped boost town hall bosses’ pay packets by 30% in four years.

The company is wholly owned by the Society of Local Authority Chief Executives and Senior Managers (Solace) and the company’s directors include a number of serving chief executives.

In one recent commission, the newspaper claims, Solace Enterprises was paid by Coventry City Council to find a new council boss and advise on the salary package.

The incoming chief executive, Martin Reeves, will be paid £175,000, compared with the £146,000 of his predecessor, it says.

However, David Clark, director-general of Solace, told The Sunday Times Solace Enterprises’ salary benchmarking services were provided by consultants and were based on detailed research of salaries and not the vested interests of council bosses.

Many councils wanted to recruit only the most senior staff from the best-performing local authorities, which was one of the main reasons for the significant increase in pay.