Some of the UK's largest charities said it was essential they offer a reward package that helps them retain the sector's best talent.
Yesterday, some of Britain's leading charities were accused of giving their chief executives excessive salaries and pay rises.
Sector watchdog the Charity Commission said 30 executives at 14 leading international development charities connected to the Disasters Emergency Committee now earn more than £100,000.
Control boardroom pay
The watchdog accused organisations of bringing the charitable world into disrepute.
William Shawcross, chairman of the Charity Commission, warned charities to control boardroom pay or risk doing harm to their reputations.
"It is not for the commission to tell charities how much they should pay their executives. That is a matter for their trustees," he said.
"However, in these difficult times, when many charities are experiencing shortfalls, trustees should consider whether very high salaries are really appropriate and fair to both the donors and the taxpayers who fund charities."
Fair pay and reward
The British Red Cross said the salary of its chief executive is "far from a secret", adding that it was "fully committed to transparency and accountability". The charity's chief executive, Nicholas Young, earn £184,000 a year.
In a statement, the charity said: "The salary of our chief executive - which is set by the Board of Trustees, reflects the enormous responsibility the position carries."
Oxfam said it was aware that senior pay must not escalate, but its CEO Mark Goldring's pay of £119,560 was "fair reward".
"The job involves long hours, large amounts of time away from family and overseeing a £360 million organisation that runs everything from a 700-branch national shop network to major emergency responses and long-term development work to improve the lives of the poorest people on the planet," Oxfam said in a statement.
"Our chief executive is also responsible for more than 5,000 staff and tens of thousands of volunteers."
Oxfam said it had increased its CEO's pay recently because it was becoming uncompetitive with the rewards on offer at similar organisations.
Save the Children has one of the highest paid CEOs in the charity sector - Justin Forsyth is paid £163,000.
The charity said this package was essential in attracting someone who can run an organisation that employs thousands of staff in some of the toughest places in the world, and who has real leadership, experience, knowledge and skill.
Stephen Bubb, chief executive of charity leaders' network Acevo, said the comments by Shawcross were "deeply unhelpful".
