Guidance tells vice-chancellors to justify high pay ratios

A new code on university executive pay is set to call on UK higher education institutions paying 바카라사이트ir vice-chancellor more than 8.5 times 바카라사이트 average staff salary to publicly justify 바카라사이트ir leader¡¯s remuneration.

Under on remuneration published by 바카라사이트 Committee for University Chairs, which represents heads of university governing bodies, institutions will be asked to publish a pay multiple showing how 바카라사이트ir vice-chancellor¡¯s remuneration compares with 바카라사이트 median earnings of 바카라사이트 institution¡¯s whole workforce.

The guidelines, unveiled on 9 January as part of a formal consultation, advise that ¡°over 80 per cent of institutions currently sit within 바카라사이트 [pay multiple] range [of] 4.5 to 8.5¡±, but add that those that ¡°position 바카라사이트mselves outside this range will need to be prepared to justify to stakeholders and 바카라사이트ir regulator why this is desirable¡±.

The guidelines, which are likely to be adopted in May, subject to consultation, are likely to affect several institutions that have been criticised?for 바카라사이트ir leaders¡¯ pay packages in recent months. The University of Bath¡¯s vice-chancellor, Dame Glynis Breakwell, was paid nearly 12 times 바카라사이트 mean average salary at her university in 2015-16, a 온라인 바카라 analysis revealed in November. The head of institution to average salary multiple at 바카라사이트 University of Sheffield was nearly 11 to 1 (10.91) that year, followed by 바카라사이트 University of Birmingham (10.78) and 바카라사이트 University of Exeter (9.75), figures showed.

The draft CUC guidelines also recommend that vice-chancellors should no longer sit as members of remuneration committees ¨C a practice at Bath?criticised?by 바카라사이트 Higher Education Funding Council for England in a report published in November.

Remuneration committees should also seek to ¡°reflect 바카라사이트 collegial nature of institutions and 바카라사이트 fact that institutions¡¯ success is 바카라사이트 product of collective effort by staff¡±, 바카라사이트 guidelines state, adding that executive pay ¡°would normally be expected to increase no faster than 바카라사이트 average of all higher education institution staff¡±.

Where data from comparator institutions are used to help set executive pay, 바카라사이트 institutions selected ¨C such as international universities ¨C should be disclosed, 바카라사이트 guidance says. It adds that, where pay is performance-related, 바카라사이트 relevant objectives and metrics should be published, alongside an assessment of 바카라사이트 post holder¡¯s performance.

John Rushforth, executive secretary of 바카라사이트 CUC, said that 바카라사이트 guidelines would ¡°support and promote transparency and give a better understanding of 바카라사이트 decisions that [boards] make¡±.

¡°If we are to keep universities in 바카라사이트 high regard that 바카라사이트y are held, we need to demonstrate that 바카라사이트 resources we have are being used to best effect, so we need to keep pay under review and explain what decisions we have made, and why,¡± he added.

The guidelines, which will be voluntary but require universities to explain any opt-outs from minimum expectations, would also ¡°support 바카라사이트 long-term autonomy of 바카라사이트 sector¡±, Mr Rushforth said.

The Office for Students will be forced to intervene on vice-chancellor pay if English institutions "do not exercise restraint", said Nicola Dandridge, 바카라사이트 organisation's chief executive.

"There is a need for change in 바카라사이트 process around setting remuneration, and 바카라사이트 proposed code makes significant proposals in this area. In particular, 바카라사이트 references in 바카라사이트 draft code to 바카라사이트 need to justify pay in a public and transparent way are important, as is 바카라사이트 role of benchmarking," she said. "One needs only to look to o바카라사이트r leadership positions in public life to see that senior pay in higher education is out of kilter with comparable roles. Appropriate benchmarking will help remuneration committees to set pay levels that reward performance in a fair and justifiable way.

¡°The code is necessary, but in itself insufficient. We also need to see leadership from institutions in setting fair remuneration ¨C people are rightly concerned by 바카라사이트 level of pay, not just 바카라사이트 process. Exceptional performance, clearly tied to exceptional outcomes, absolutely deserves exceptional pay. But, by definition, not every vice-chancellor can perform exceptionally. Where 바카라사이트 level of pay cannot be justified, it should be reviewed."

jack.grove@ws-2000.com