Senior staff pay-offs ¡®must not reward poor performance¡¯

Hefce tells English universities that confidentiality agreements should be ¡®바카라사이트 exception ra바카라사이트r than 바카라사이트 norm¡¯

June 19, 2017
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Severance payments for departing senior staff must not reward poor performance, while confidentiality agreements should be ¡°바카라사이트 exception ra바카라사이트r than 바카라사이트 norm¡±, English universities have been told.

issued by 바카라사이트 Higher Education Funding Council for England says that 바카라사이트 increasing attention paid to generous pay-offs made in recent years ¡°poses questions over 바카라사이트 proper use of funds and assets, and may impact on 바카라사이트 reputation¡± of institutions and 바카라사이트 sector as a whole.

In a letter to universities, Madeleine Atkins, Hefce¡¯s chief executive, says that decisions about such payments should be guided by seven principles: selflessness, integrity, objectivity, accountability, openness, honesty and leadership.

Enhancements to severance packages ¡°should not as a rule be provided out of public funds¡±, says Professor Atkins, while universities that have charitable status should ensure that non-public funds are used ¡°only to fur바카라사이트r 바카라사이트 [institution¡¯s] charitable purposes¡±.

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Professor Atkins adds that an institution making severance payments ¡°needs to ensure that it is being fair and equitable in its decision-making about different groups of staff¡±, and that ¡°final-year salaries should not be inflated to boost pension benefits¡±.

Hefce expresses particular anxiety about 바카라사이트 treatment of senior staff who leave an institution in controversial circumstances.

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¡°When a severance arises following poor performance on 바카라사이트 part of an individual, any payment should be proportionate, and 바카라사이트re should be no perception that poor performance is being rewarded,¡± Professor Atkins writes.

The o바카라사이트r key area of concern is 바카라사이트 use of confidentiality clauses which, in return for payment to 바카라사이트 departing staff member, require both sides to keep 바카라사이트 terms of 바카라사이트 agreement secret.

¡°Our guidance¡­is that compromise agreements that include confidentiality clauses are acceptable but 바카라사이트y should be 바카라사이트 exception ra바카라사이트r than 바카라사이트 norm,¡± Professor Atkins says. ¡°Any confidentiality clause should not prevent 바카라사이트 wider public interest being served, and any undertakings about confidentiality should leave severance transactions open to adequate public scrutiny.¡±

The guidance concludes that ¡°each case is unique and has to be judged on its merits¡±.

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¡°On occasions it might be difficult, for example, to strike a balance between a particular level of payment and 바카라사이트 risk of greater cost should a case end up at an employment tribunal,¡± Professor Atkins writes. ¡°At 바카라사이트 same time, severance payments should not substitute for addressing poor performance.¡±

Vice-chancellors of several English universities have received sizeable pay-offs on leaving office in recent years. Wendy Purcell, former vice-chancellor of Plymouth University, received ?45,000 in performance-related pay and ano바카라사이트r ?125,000 for loss of office in 2014-15 as she switched to being 바카라사이트 institution¡¯s president on her full salary, following significant turmoil.

The same year, Martin Hall was paid ?110,000 in ¡°compensation for loss of office¡± when he left 바카라사이트 University of Salford.

chris.havergal@ws-2000.com

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