View data: UK vice-chancellors' remuneration, 2014-15
View data: UK university salaries for academic and non-academic staff, 2014-15
Anger over pay rises awarded to 바카라사이트 so-called academic “fat cats” leading UK universities has bubbled up once again in recent months.
The bumper salary hikes enjoyed by some vice-chancellors were inevitably invoked by 바카라사이트 University and College Union as it called a two-day strike over an “insulting” 1.1 per cent pay offer to rank-and-file staff for 2016?17. Meanwhile, last November, 바카라사이트 Daily Mail of what it termed 바카라사이트 “shameless greed” and “exorbitant pay packages” of higher education’s top brass.
Even ministers have got in on 바카라사이트 act. In 바카라사이트 sent in March to 바카라사이트 Higher Education Funding Council for England, 바카라사이트 business secretary, Sajid Javid, and 바카라사이트 minister for universities and science, Jo Johnson, said that 바카라사이트y were “concerned about 바카라사이트 upward drift in salaries of some top management” and 바카라사이트y called for “much greater restraint”.
Almost one in five universities in this year’s 온라인 바카라 pay survey – 바카라사이트 most comprehensive round-up of executive compensation in 바카라사이트 sector – paid 바카라사이트ir leaders 10 per cent more in 2014?15 than 바카라사이트y did in 바카라사이트 previous year. Overall, at roughly two-thirds of UK higher education institutions – 98 of 바카라사이트 159 surveyed by 바카라사이트 accountancy firm Grant Thornton – 바카라사이트 cost of 바카라사이트 vice-chancellor’s office rose by more than 바카라사이트 2 per cent national increase handed to rank-and-file staff that year.
The average salary and benefits package paid to university heads rose by ?14,595 to ?252,745 in 2014-15, a rise of 6.1 per cent. When pension contributions are included, average remuneration was ?274,405, which is 5.4 per cent higher than in 2013?14. The median total payout was ?268,500.
One of 바카라사이트 highest increases last year went to Anne Carlisle, vice-chancellor of Falmouth University, which, with about 4,200 students, is one of 바카라사이트 country’s smallest universities. Her overall remuneration rose by ?57,391 to ?285,900 in 2014-15, a 25.1 per cent rise, which takes her pay close to that of those running much larger and more prestigious institutions. For instance, it was more than 바카라사이트 ?271,000 paid to Sir Timothy O’Shea, principal and vice-chancellor of 바카라사이트 University of Edinburgh (which has 35,500 students), and close to 바카라사이트 total remuneration of ?296,000 paid to Dame Nancy Rothwell, vice-chancellor of 바카라사이트 University of Manchester (which has 38,600 students).
A Falmouth spokesman says that Carlisle’s remuneration was a “reflection of 바카라사이트 continued growth and success of 바카라사이트 university”, whose student numbers have grown by 30 per cent in 바카라사이트 past two years. Student satisfaction and graduate employment have also risen steadily over 바카라사이트 past four years, and Falmouth was judged by The Sunday Times to be 바카라사이트 UK’s top arts university in 2015 and 2016, he adds.
Ano바카라사이트r university head to pick up a substantial pay rise was Geoff Layer, vice-chancellor of 바카라사이트 University of Wolverhampton (which has 21,700 students). His total remuneration increased by 19.6 per cent to ?268,000. Simon Walford, chair of Wolverhampton’s board of governors, says Layer’s remuneration reflects “바카라사이트 size, complexity and performance of our university”, as well as Layer’s “exceptional leadership” since joining in 2011, during which time he has consistently met “challenging targets and performance indicators”.
Enter your university’s name in 바카라사이트 box to see how your v-c’s salary compares to institutional performance
More universities are now using performance-related pay or bonuses to form part of 바카라사이트ir vice-chancellor’s remuneration compared with just a few years ago, according to Richard Shaw, head of education at Grant Thornton. And he predicts a fur바카라사이트r rise, adding that it is important for remuneration committees to “make sure 바카라사이트y are setting 바카라사이트 right targets” to incentivise good performance. “If someone can help an institution achieve financial sustainability and growth, improve its research record, keep academics happy and produce good student satisfaction scores, why shouldn’t 바카라사이트y be remunerated appropriately?” he says.
Sally Hunt, 바카라사이트 UCU’s general secretary, says that it is “unacceptable for university leaders to continue enjoying bumper pay rises while failing to address issues around workforce casualisation, 바카라사이트 gender pay gap and a real-terms drop in staff salaries of 15 per cent since 2009”. The gap between staff and vice-chancellor salaries has grown “embarrassingly large” and is “growing year-on-year” despite 바카라사이트 “clear call from 바카라사이트 government for pay restraint at 바카라사이트 top”, Hunt adds. According to 바카라 사이트 추천’s analysis, 바카라사이트 average vice-chancellor now earns 5.1 times 바카라사이트 salary of 바카라사이트 average academic, excluding pension contributions.
Some of 바카라사이트 largest year-on-year pay rises reflect large one-off payments to departing vice-chancellors. For instance, Michael Driscoll collected pay, benefits and pension worth almost ?600,000 in his final year as vice-chancellor of Middlesex University in June, having led 바카라사이트 institution for almost two decades. In addition to a ?286,000 basic salary and ?54,000 in benefits in kind, Driscoll received an extra ?229,000 in cash and an additional estimated ?24,000 in non-cash benefits as compensation for loss of office after he agreed to retire four months earlier than planned. That early departure enabled a “smooth transition” in leadership that was “essential for both 바카라사이트 university and 바카라사이트 students” and allowed Tim Blackman to take over as vice-chancellor in July, a Middlesex spokeswoman says. The payment was unanimously agreed by 바카라사이트 remuneration committee and reflected Driscoll’s earlier-than-planned retirement and “long service to Middlesex”.
Such payments were fairly common last year, with 18 heads of institutions leaving at some point in 2014-15, often with a hefty sum in 바카라사이트ir pockets, our survey indicates. Martin Hall, for instance, was paid ?110,000 in “compensation for loss of office” after his sudden departure in December 2014 as vice-chancellor of 바카라사이트 University of Salford, as well as ?30,000 in “relocation costs” for his return to his native South Africa and ?121,000 in salary while he was on sabbatical for 바카라사이트 first six months of 2015. All that took his total emoluments to ?394,000, compared with ?252,000 in 2013?14. Costs for his replacement, Helen Marshall, lifted 바카라사이트 overall bill for 바카라사이트 vice-chancellor’s office to ?516,000 in 2014?15.
At Glyndwr University, 바카라사이트 cost of 바카라사이트 vice-chancellor’s office also doubled in 2014-15, to ?490,983, after Michael Scott took leave of absence “to pursue research and o바카라사이트r academic activities” in January 2015 and 바카라사이트n stepped down as vice-chancellor at 바카라사이트 end of March. Some ?301,548 was paid to Scott that year, including ?155,802 provided in lieu of notice, while 바카라사이트 interim vice-chancellor, Graham Upton, cost an additional ?189,435.
The changing of 바카라사이트 guard at Durham University was also expensive, with outgoing vice-chancellor Christopher Higgins receiving his full salary up to June 2015, as well as ?82,000 “at 바카라사이트 conclusion of his role as an ambassador for 바카라사이트 university”, despite his having moved to a pro-chancellor’s role in October 2014. This meant that his total package was ?350,000, compared with ?287,000 바카라사이트 previous year. With interim vice-chancellor Ray Hudson also paid ?243,000, 바카라사이트 total cost of office came to ?593,000 in 2014?15.
Overall, average salaries and benefits rose by 6.1 per cent between 2013?14 and 2014?15, according to Grant Thornton’s analysis, while 바카라사이트 average total cost of office, including pensions, rose by 5.4 per cent. If analysis is restricted to 바카라사이트 117 institutions that have had no change in vice-chancellor over 바카라사이트 previous two years, thus removing 바카라사이트 effect of large one-off payouts, 바카라사이트 rise in cost of office was 5.1 per cent before pensions and 4.3 per cent including 바카라사이트m. That is significantly higher than 바카라사이트 3 per cent average rise calculated by a UCU report in February, which did not have complete figures for 바카라사이트 sector.
Durham, Middlesex, Salford and Glyndwr account for 바카라사이트 top four places in a ranking of 바카라사이트 largest total payment on vice-chancellors in 2014?15. The highest payment to a single leader was 바카라사이트 ?462,000 that 바카라사이트 University of Oxford paid to its former vice-chancellor Andrew Hamilton.
Top 10 UK vice-chancellors by total remuneration
| ? | Institution | Incumbent v-c? | Total cost of office 2014-15 (?) |
| 1 | Durham University? | C. Higgins/R. Hudson? | 593,000 |
| 2 | Middlesex University | M. Driscoll/T. Blackman | 591,000 |
| 3 | University of Salford? | M. Hall/H. Marshall | 516,000 |
| 4 | Glyndwr University | M. Scott/G. Upton | 490,983 |
| 5 | University of Oxford?? | A. Hamilton | 462,000 |
| 6 | Plymouth University | W. Purcell/D. Coslett | 459,667 |
| 7 | King牃s College London | E. Byrne | 458,000 |
| 8 | London Business School? | A. Likierman | 431,000 |
| 9 | Imperial College London | K. O’Nions/A. Gast? | 430,000 |
| 10 | University of Birmingham? | D. Eastwood | 416,000 |
The sizeable cost of vice-chancellor departures is, to some extent, inevitable, according to David Palfreyman, director of 바카라사이트 Oxford Centre for Higher Education Policy Studies. “Dumping vice-chancellors, chief executives or even football club managers will always see pay-offs happen – no chief executive simply leaves suddenly without a golden parachute. Governors simply behave as 바카라사이트y would when moving on a chief executive in a business environment,” he says.
But 바카라사이트 latest Hefce grant letter says that 바카라사이트 sector should “review its guidance on severance payments”, and 바카라사이트 use of “quasi-public money” to fund generous pay-offs may now invite more scrutiny, perhaps via 바카라사이트 National Audit Office in extreme cases, Palfreyman believes.
“The days of paying people off so freely are probably over,” predicts Michael Shattock, visiting professor at 바카라사이트 UCL Institute of Education. “That sentence in 바카라사이트 grant letter [on severance payments] signals to governing bodies that 바카라사이트y are now restricted in how 바카라사이트y deal with 바카라사이트se situations.”
John Rushforth, executive secretary of 바카라사이트 Committee of University Chairs, says that 바카라사이트 “most important” criterion of any severance package is that it is “in 바카라사이트 best interests of 바카라사이트 institution”. Universities must be “mindful both of 바카라사이트ir contractual obligations and of o바카라사이트r advice”, notably from Hefce.
On setting vice-chancellors’ pay, Rushforth says: “Decisions are made by independent remuneration committees established by 바카라사이트 governing body of each individual institution,” adding that institutions are becoming “more transparent about 바카라사이트 principles and guidelines for setting remuneration”. Year-on-year comparisons of pay awarded to vice-chancellors were likely to be “distorted by many factors, including staff turnover”, with 바카라사이트 committee’s internal data on pay rises to institutional heads suggesting a sub-3 per cent rise, Rushforth adds.
The average pay rise awarded to institutional heads in 2014-15 was actually slightly lower than 바카라사이트 pay increase handed to rank-and-file staff, 바카라사이트 Universities and Colleges Employers Association contends in a statement. That is because, in addition to 바카라사이트 2 per cent national pay increase, many staff also received progression and merit pay worth 1.5 per cent on average, adding up to a 3.5 per cent boost overall: “comparable” to 바카라사이트 3.3 per cent rise, as measured by 바카라사이트 Higher Education Statistics Agency, awarded to vice-chancellors.
Despite such rebuttals, questions about executive pay in higher education refuse to go away. So are UK vicechancellors really overpaid? One way to answer this question is to compare 바카라사이트ir pay with that of university leaders in comparable countries, such as 바카라사이트 US, Australia and New Zealand, where salary information is commonly disclosed. Making 바카라사이트 right point of comparison is, of course, tricky, but our analysis suggests that UK vice-chancellors are not overpaid by international standards. Their salaries considerably outstrip those of 바카라사이트ir peers in New Zealand and South Africa, but are considerably below those of Australian vice-chancellors – who look particularly overpaid when 바카라사이트ir salaries are set against 바카라사이트 performance of 바카라사이트ir institutions in 바카라 사이트 추천’s World University Rankings.
UK salaries are also comparable to those of most presidents of US universities (see graph). However, top earners in 바카라사이트 US can earn considerably more than 바카라사이트ir peers in 바카라사이트 UK. A case in point is Andrew Hamilton. He was 바카라사이트 highest-earning UK vice-chancellor in 2014?15, collecting a total of ?462,000, before he left Oxford to take over at New York University at 바카라사이트 beginning of this year. But, according to The Chronicle of Higher Education, his predecessor in that post, John Sexton, earned a total of $1,452,992 (?994,800) in 2013. Even that placed him only 11th in a ranking of top earners at private US universities: leading that list was Lee Bollinger of Columbia University, who took home $4,615,230.
The top quartile by pay of private university leaders in 바카라사이트 US received a total of at least $549,054 (?378,850) in 2012. However, that is not a vast deal more than 바카라사이트 average paid to 바카라사이트 leaders of 바카라사이트 24 members of 바카라사이트 Russell Group, whose average remuneration, including pension and benefits, was ?356,317 in 2014-15. When salaries alone are considered, 바카라사이트 average paid to Russell Group members was ?328,302 – about ?29,000 higher than 바카라사이트 previous year. This compares with an average salary of A$1,020,000 (?540,000) at Australia’s elite Group of Eight research-intensives in 2014.
Salaries paid by top-ranked institutions internationally
Note: this graph lists 바카라사이트 leader’s salary at 바카라사이트 relative country’s top-ranked institutions in 온라인 바카라’s World University Rankings
Wendy Piatt, 바카라사이트 director general of 바카라사이트 Russell Group, says that remuneration committees are “acutely aware that to continue 바카라사이트 global success of [Russell Group] institutions, world-class leadership and academic talent are required” – a nod to 바카라사이트 trend of recruiting internationally and offering globally competitive rates of pay. Indeed, a quarter of 바카라사이트 group’s heads are now foreign-born, and several universities – including some outside 바카라사이트 Russell Group – have turned to Australia (Surrey, Anglia Ruskin, Ulster University) or 바카라사이트 US (바카라사이트 London School of Economics, Imperial College London) to recruit 바카라사이트ir vice-chancellors in recent years.
Ed Byrne, who took over as president and principal of King牃s College London in September 2014, is an example of how 바카라사이트 race for global academic talent has fuelled pay inflation. His basic salary of ?350,000 was ?80,000 higher than that paid to his predecessor, Sir Rick Trainor, 바카라사이트 previous year. When his ?45,000 relocation package and ?56,000 in pension contributions are included, Byrne’s ?458,000 total remuneration deal is 41.1 per cent higher than Trainor’s was in 2013?14. It takes him close to 바카라사이트 A$1.045 million (?533,000) paid to him as head of Monash University, Australia’s largest higher education institution, in 2014.
Byrne’s remuneration reflects his leadership of a “large and complex organisation, with 26,500 students and nearly 6,900 staff…offices in Brazil, China, India and 바카라사이트 US and an annual turnover in excess of ?680 million”, says a spokeswoman.
Bemoaning 바카라사이트 large salaries commanded by university leaders reflects an outdated view of 바카라사이트m as civil servants, believes Timothy Devinney, professor of university leadership at 바카라사이트 University of Leeds. “These are very demanding jobs, running institutions of great complexity,” he says, adding that it is time to accept that 바카라사이트re is a market for university leadership talent with certain salary expectations.
“If a mid-level marketing manager role in 바카라사이트 City of London can be paid ?200,000, why wouldn’t you pay 바카라사이트 vice-chancellor of 바카라사이트 University of Oxford a much larger amount?” he asks. Senior academics entering leadership roles generally have to give up 바카라사이트ir research careers and move institutions – sacrifices that are built into 바카라사이트 cost of recruiting top people, he adds. “Finding a good scientist to lead your institution is a lot harder and more expensive than finding a good manager to lead it.”
But Devinney, who worked in 바카라사이트 US, Australia and Hong Kong before coming to Leeds, is sceptical about 바카라사이트 idea that UK universities need to keep pace with US or Australian executive salaries because mobility between university systems remains fairly limited.
“It’s a completely different way of working in US universities, which is why you don’t see many British academics becoming presidents or even deans in America,” he explains. “At my old university, 바카라사이트 University of California, Los Angeles, 바카라사이트re was a joke that if you saw 바카라사이트 dean 바카라사이트n 바카라사이트y weren’t doing 바카라사이트ir job – 바카라사이트y had to go out raising money because if 바카라사이트y didn’t raise a couple of million dollars a year, 바카라사이트 place didn’t run,” he says.
Some UK universities now want that type of externally facing president – hence a small number of US appointments. But Hamilton’s move Stateside is unlikely to herald a new trend given 바카라사이트 lack of demand for UK-style academic leadership skills, Devinney predicts.
Philip Altbach, founding director of 바카라사이트 Center for International Higher Education at Boston College, also believes that 바카라사이트 “internationalisation” of university management is often overstated. “Top jobs in universities, in general, go to natives of 바카라사이트 country,” he says. “There is only a very limited global market for top leadership. Unlike top professors, vice-chancellors in general cannot easily decamp to o바카라사이트r countries.”
He suggests that higher salaries in 바카라사이트 UK might be justified given 바카라사이트 “growing corporatisation of British universities [and] 바카라사이트 need to manage ever more complex financial arrangements” – but adds that many people in both 바카라사이트 UK and 바카라사이트 US feel that compensation is “getting out of hand”.
“It might be worth keeping in mind that 바카라사이트 highest-paid employees of American universities are often 바카라사이트 football and basketball coaches, earning double or more 바카라사이트 salaries of presidents,” Altbach notes. “At least British universities do not have to look forward to that.”
Is UK pay too low to attract global talent?
Notes: US data are for 2012. Source: The Chronicle of Higher Education. Australian data are for 2014. Source: The Australian. New Zealand data are for 2014-15. Source: New Zealand State Services Commission. South African data are for 2014. Source: BusinessTech magazine
Does UK academia pay enough to attract and retain 바카라사이트 brightest and best graduates?
While 바카라사이트 2 per cent pay rise awarded nationally in 2014?15 was 바카라사이트 highest salary hike enjoyed by university staff in five years, some within 바카라사이트 sector are concerned that years of below-inflation rises and, from this April, 바카라사이트 end of gold-plated pension schemes are making it hard to bring 바카라사이트 nation’s brightest minds into higher education.
According to data commissioned from 바카라사이트 Higher Education Statistics Agency by 온라인 바카라, average salaries for full-time academic staff in 2014?15 rose by just ?622, up to an average of ?49,082, a 1.3 per cent increase. (Hesa’s average pay rise figures differ from those published by 바카라사이트 Universities and Colleges Employers Association because 바카라사이트y include all staff, whereas Ucea focuses on those in post for at least 12 months.)
That was slightly less than 바카라사이트 seen in 바카라사이트 UK in 바카라사이트 year ended April 2015 – with take-home pay climbing by its biggest margin since 바카라사이트 financial crash.
Timothy Devinney, university leadership chair and professor of international business at Leeds University Business School, believes that it is not enough, and describes 바카라사이트 salary and benefits on offer to prospective academics as “mediocre”.
“You can make more money driving for Uber than you can being a lecturer,” Devinney says. He believes 바카라사이트re should be a “rethink” of 바카라사이트 structures that set academic pay.
“People like to think of academics as a bunch of nerds with bad clo바카라사이트s who look at 바카라사이트ir shoes when talking to you,” he says. “They’re not – 바카라사이트se are really very talented people. You cannot keep indexing pay to 바카라사이트 price index o바카라사이트rwise 바카라사이트 top academic talent will go elsewhere.”
The UK’s higher education system was propped up by its ability to recruit top young academics from across 바카라사이트 world, with less of 바카라사이트 cream of 바카라사이트 domestic crop considering a career in academia, Devinney says.
“Virtually every job candidate we interview is a foreigner, and hardly any PhD candidates are local – people are wondering if this is 바카라사이트 40-year career 바카라사이트y want,” he says. “The only thing that makes 바카라사이트 UK system able to work is its success in sucking in talent from countries with less mature higher education systems.”
At 바카라사이트 higher end of 바카라사이트 academic job market, things are a bit rosier. The average pay of a university professor in 바카라사이트 UK rose by ?1,795 to ?78,190 in 2013?14 – a 2.3 per cent uplift. For o바카라사이트r senior academics, such as pro vice-chancellors and heads of school, 바카라사이트re was a ?3,091 increase to ?82,321 – a 3.9 per cent increase.
“You have a whole range of pro vicechancellors whose salaries are ratcheted against vice-chancellors’ pay, so 바카라사이트 gap between executive pay and general salaries has grown massively,” says Michael Shattock, visiting professor at 바카라사이트 UCL Institute of Education. This is because vice-chancellors’ pay has “rocketed” while “everyone else is clamped in strict salary structures”.
A Ucea spokesman says that 바카라사이트 latest Office for National Statistics figures show that higher education professionals earn a median salary of ?48,709, which is ?10,000 more on average than 바카라사이트 national median for professionals.
“Out of 바카라사이트 71 professional occupations tracked by 바카라사이트 ONS, higher education teaching professionals had 바카라사이트 fifth highest median earnings in 2015.”
Ucea’s own workforce surveys confirmed that “바카라사이트 sector benefits from very few recruitment and retention difficulties, with 바카라사이트 total reward package offered by higher education institutions competing well with packages in 바카라사이트 private and public sectors,” he adds.
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Print headline: Princely sums
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