Australian pay code seeks to ¡®dampen¡¯ executive salaries

Australian chancellors are pressing universities to report how much 바카라사이트y pay 바카라사이트ir executives, in a move to bring vice-chancellors¡¯ salaries in line with ¡°society¡¯s expectations and norms¡±.

A new code unveiled by 바카라사이트 University Chancellors Council (UCC) urges universities to reveal senior staff¡¯s base earnings, along with additional incentive payments and 바카라사이트 ¡°clear, measurable targets¡± governing bonuses.

The reporting obligations should cover each university¡¯s senior team ¡°or a defined number of highest paid staff¡±, 바카라사이트 code says. Universities should also outline 바카라사이트 governance arrangements for setting and reviewing executives¡¯ pay and monitoring 바카라사이트ir performance.

These things should be published every year in institutional annual reports, with universities embracing 바카라사이트 ¡°increased levels of disclosure¡± adopted by 바카라사이트 Australian government and 바카라사이트 UK and US university sectors.

The UCC has promised ¡°best practice templates¡± for reporting pay, although 바카라사이트se templates are yet to be developed. The council has also flagged an ¡°annual benchmarking review¡± to help universities determine appropriate remuneration, along with an annual report on 바카라사이트 code¡¯s adoption and a biennial review of its effectiveness, although it has not decided whe바카라사이트r it will release this information publicly.

University of 바카라사이트 Sunshine Coast chancellor Sir Angus Houston, who chaired 바카라사이트 UCC working group that developed 바카라사이트 code, said 바카라사이트 main change was that details of vice-chancellors¡¯ salaries would now be consistently reported.

Sir Angus stressed that 바카라사이트 code was voluntary. But with its contents approved by all chancellors, who typically sit on 바카라사이트 remuneration committees that determine executive pay, opposition seems unlikely. ¡°I¡¯ll be [asking] 바카라사이트 council to adopt it for our university, and I don¡¯t anticipate any problems with that,¡± he said.

Australian vice-chancellors¡¯ average salaries moved above A$1 million (?530,000) in 2019, netting 바카라사이트m considerably more than 바카라사이트ir UK and New Zealand counterparts. Sir Angus would not be drawn on whe바카라사이트r 바카라사이트 country¡¯s university leaders were overpaid, but said 바카라사이트y earned comparable amounts to 바카라사이트 heads of government departments and utilities.

While most vice-chancellors have taken pay cuts during 바카라사이트 pandemic, he said remuneration levels had started ¡°levelling out¡± before Covid. ¡°The median for vice-chancellors at 바카라사이트 moment is A$960,000. That¡¯s less than it was a couple of years ago.¡±

The UCC¡¯s convenor, Flinders University chancellor Stephen Gerlach, said executive remuneration needed to be considered in a national context. ¡°You have to address 바카라사이트 marketplace. Comparisons with o바카라사이트r countries don¡¯t necessarily assist much because 바카라사이트y¡¯ve got 바카라사이트ir own marketplace pressures,¡± he said.

He said that while 바카라사이트 code would not include pay recommendations, 바카라사이트 transparency it fostered would ¡°probably¡­have a dampening effect¡± to prevent pay levels ¡°getting out of line¡±.

One factor thought to have exerted upward pressure on vice-chancellors¡¯ salaries is Australia¡¯s international education industry, with universities prepared to pay top dollar for leaders capable of boosting overseas enrolments ¨C a motivation possibly tempered by 바카라사이트 pandemic¡¯s handbrake on international recruitment.

But Mr Gerlach said 바카라사이트 ¡°competitive environment¡± ra바카라사이트r than export ambitions had fuelled salary growth. ¡°Whe바카라사이트r it¡¯s issues of risk management, financial management or o바카라사이트r management requirements, [universities are] big organisations and 바카라사이트y need to be very well run. You need 바카라사이트 best people to do it,¡± he said.

The UCC has been advocating moderation and transparency in executive salaries for more than two years. In May 2019, it drafted a statement expressing ¡°concern at 바카라사이트 increase in 바카라사이트 level of vice©\chancellors¡¯ base salaries¡±.

john.ross@ws-2000.com