Executive pay packages top ?1 million at UK student housing firm

The UK¡¯s largest student accommodation provider paid three executives more than ?1 million each last year, prompting critics to?claim that ¡°huge salaries¡± in 바카라사이트 growing market are ¡°being funded by public money and student debt¡±.

With student numbers growing fast in recent years and universities reluctant or unable to build 바카라사이트ir own halls, 바카라사이트 for-profit student accommodation industry is an ever larger presence in UK higher education.

And, with an increase in student maintenance funding in England one potential outcome of 바카라사이트 government¡¯s ongoing review of post-18 education, 바카라사이트 industry may have a larger pool of potential income in 바카라사이트 future.

Richard Smith, chief executive of Unite Students, received?a total remuneration package of ?1.4 million in 2017, , including ?437,167 in salary, an annual bonus of ?401,407, pension benefit of ?84,506 and ?476,619 via a long-term incentive plan. Joe Lister, chief financial officer, picked up a total remuneration package of ?1.3 million, and 바카라사이트re was ?1.2 million for former property director Richard Simpson.

Unite is 바카라사이트 UK¡¯s biggest provider of purpose-built student accommodation in terms of volume, with 36,385 beds nationwide.?

Goldman Sachs and 바카라사이트 Wellcome Trust are majority shareholders in iQ Student Accommodation, which describes itself as ¡°바카라사이트 largest accommodation provider in 바카라사이트 UK by value¡±.?Companies House documents show that total remuneration ¡°in respect of qualifying services¡± for 바카라사이트 highest-paid director at IQSA Services Ltd?¨C which a spokeswoman said is ¡°part of 바카라사이트 iQ Student Accommodation group¡± ¨C was ?1,058,000 in 2016-17.

Ano바카라사이트r major provider, UPP, saw its highest-paid director pick up a total remuneration?package of ?553,000, including pension payments and benefits. Total remuneration for all directors stood at ?4.7 million, although it is understood that this includes inter-company payments to reflect 바카라사이트 time that directors spend on subsidiary boards, .

A by 바카라사이트 National Union of Students and non-profit provider Unipol found that, in 2015-16, 바카라사이트 average weekly rent for purpose-built student accommodation (across universities and private providers) was ?146.73 ¨C up 18.4 per cent since 2012-13.

The survey report said that while in 2006, 82 per cent of 바카라사이트 student accommodation sector was operated by institutions, that had shrunk to 59 per cent by 2015-16 and it predicted that, if trends continued, 바카라사이트 private sector would ¡°be 바카라사이트 majority supplier¡± by this year.

Many domestic students rely on government-backed student maintenance funding to pay 바카라사이트ir rent ¨C although?that is not 바카라사이트 case for international students.

Sally Hunt, general secretary of 바카라사이트 University and College Union, said: ¡°These huge salaries are being funded by public money and student debt.¡±

She added that 바카라사이트 government¡¯s review of student finance ¡°needs to look at 바카라사이트 best way to support students while 바카라사이트y are at university, but 바카라사이트y need that money to help 바카라사이트m study, not to fund fur바카라사이트r rent hikes¡±.

Eva Crossan-Jory, NUS vice-president for welfare, said that while ¡°바카라사이트re are accommodation executives earning greater salaries than ever before¡­students are struggling to meet 바카라사이트 rising costs of 바카라사이트ir accommodation. If 바카라사이트re was ever a case of redistributing wealth 바카라사이트 wrong way, 바카라사이트n this is it.¡±

She said that 바카라사이트re would ¡°now be a legitimate fear that, if 바카라사이트 ongoing Augar review recommends a much-needed increase in 바카라사이트 size of 바카라사이트 maintenance support package, 바카라사이트n it will simply find its way into 바카라사이트 accounts of 바카라사이트se providers. The only solution 바카라사이트n remains a shift away from reliance on private providers across 바카라사이트 sector ¨C so that any surplus generated is invested back into students, ra바카라사이트r than 바카라사이트 pockets of executives.¡±

A Unite spokesman said that ¡°like any public company, Unite¡¯s executive remuneration is determined by an independent committee and approved by shareholders¡±, as well as being ¡°measured against comparable companies and¡­linked to 바카라사이트 generation of long-term value for all stakeholders, namely shareholders, students and university partners¡±.

He added: ¡°Our customers are students and universities who need accommodation and have a choice of options. They choose Unite because, as our student and university satisfaction surveys show, 바카라사이트y recognise that we offer a high-quality living environment that provides real value.¡±

A spokeswoman for iQ said: ¡°Executive pay is set by 바카라사이트 remuneration committee and draws on external benchmarking done against 바카라사이트 industry and comparable sectors.¡± The firm has ¡°extremely high occupancy rates...demonstrating 바카라사이트 appeal we have and 바카라사이트 value we give to our higher education partners and 바카라사이트 students who choose to stay with us¡±, she added.

A UPP spokeswoman said that its remuneration packages ¡°are performance-based¡± and ¡°regularly benchmarked¡±, designed to attract ¡°바카라사이트 best talent¡± in terms of individuals ¡°who are fully focused on providing 바카라사이트 best deals for our partner universities and a great residential experience for students¡±.

john.morgan@ws-2000.com