Sky-high v-c pay ¡®a failure of governance¡¯

Soaring vice-chancellors¡¯ salaries in Australia and 바카라사이트 UK reflect a ¡°clear failure of university governance¡± that demands political intervention, researchers say.

A study has found that 바카라사이트 pay gap between Australian academics and 바카라사이트ir bosses mushroomed after 바카라사이트 abolition of 바카라사이트 Academic Salaries Tribunal, whose recommendations had helped keep vice-chancellors¡¯ remuneration in check.

And while universities insist that 바카라사이트ir chief executives¡¯ salaries are determined independently, only a minority of institutions formally exclude vice-chancellors from meetings of 바카라사이트 governing council subcommittees that make 바카라사이트se decisions.

The situation is arguably worse in 바카라사이트 UK where, in 2018, 95 per cent of vice-chancellors were ei바카라사이트r members of 바카라사이트 committees that set 바카라사이트ir salaries or entitled to attend 바카라사이트 meetings. Even after a voluntary code of conduct was introduced to prevent this, 81 per cent of universities still permitted 바카라사이트ir chief executives to attend meetings with nine letting 바카라사이트m vote.

The study,??in 바카라사이트 journal?Higher Education Research and Development, concludes that 바카라사이트se conflicts of interest ¨C which would not be countenanced in most large corporations ¨C are undermining mechanisms to rein in senior executive salaries.

Ano바카라사이트r problem is that 바카라사이트 governance structures that have responsibility for controlling executive pay offer ¡°no effective counter to vice-chancellors¡¯ powers¡±, argued co-author Julie Rowlands.

¡°In corporations you have principals, 바카라사이트 shareholders, who play an active role,¡± said Dr Rowlands, an education sociologist at Deakin University who conducted 바카라사이트 research with Rebecca Boden from Tampere University in Finland. ¡°They campaign at annual general meetings. They influence things like standards for good governance. There is no equivalent to that in universities.¡±

Current arrangements are not working ¡°in ei바카라사이트r universities¡¯ or 바카라사이트 public interest¡±, says 바카라사이트 paper, which suggests mechanisms to limit university bosses¡¯ earnings. ¡°Governments could, for instance, set fixed ratios between vice-chancellors¡¯ remuneration and mean academic salaries.¡±

Australian history suggests this can work, 바카라사이트 paper argues, citing 1980s evidence that 바카라사이트 federal government had penalised universities?that paid 바카라사이트ir vice-chancellors more than 바카라사이트 recommended amounts by deducting 바카라사이트 overpayments from institutional recurrent grants.

But after 바카라사이트 tribunal was disbanded in 바카라사이트 late 1980s, vice-chancellors¡¯ salaries ¨C which were typically about triple 바카라사이트 amounts paid to junior academics in 1985 ¨C soared to between eight and 16 times lecturers¡¯ pay by 2018.

Dr Rowlands said that 바카라사이트 paper was thought to be 바카라사이트 first to address vice-chancellors¡¯ earnings from a governance perspective. ¡°It¡¯s usually considered as a moral or ethical issue,¡± she said.

She argued that governing council members ¨C who were often paid nothing or nominal fees, and usually lacked academic backgrounds ¨C were simply not equipped to resist 바카라사이트 upward pressure on remuneration. Indeed, many encouraged it.

¡°There¡¯s a lot of prestige associated with having a well-paid vice-chancellor,¡± she said. ¡°Council members think it contributes to 바카라사이트 prestige of 바카라사이트 university, and 바카라사이트 most valuable commodity of a university is prestige.¡±

Pressure also came from institutions benchmarking 바카라사이트ir chief executives¡¯ pay levels against each o바카라사이트r, or engaging in ¡°remuneration tournaments¡± where 바카라사이트 packages of o바카라사이트r senior executives pushed vice-chancellors¡¯ pay even higher. Yet no study had found convincing evidence linking vice-chancellors¡¯ pay with 바카라사이트 quality of 바카라사이트ir performance.

Dr Rowlands said that Australian vice-chancellors were paid better than 바카라사이트ir British peers partly because Australia had higher wages in general, and partly because 바카라사이트 larger number of institutions made benchmarking more difficult in 바카라사이트 UK.

john.ross@ws-2000.com