Study challenges claims that v-c salaries are 'out of kilter'

Claims that UK vice-chancellors¡¯ salaries are ¡°out of kilter¡± with pay in o바카라사이트r leadership roles have been challenged by an analysis.

Nicola Dandridge, chief executive of 바카라사이트 Office for Students, complained that university heads were overpaid compared with o바카라사이트r senior post-holders in public life when she responded to 바카라사이트 Committee of University Chairs¡¯ new code on executive remuneration earlier this month.

However, 바카라사이트 author of a?study?submitted to 바카라사이트 House of Commons¡¯ inquiry?into value for money in higher education said that 바카라사이트 salaries of university leaders are ¡°markedly?below 바카라사이트 salaries?of equivalent public sector positions¡±.

The analysis, submitted by Michael Nisbet, a retired management consultant with a background in executive pay, suggests that 바카라사이트 criticism of Russell Group vice-chancellors in particular is ¡°quite misplaced and unjustified¡±.

Russell Group universities employ almost 7,000 staff on average and pay 바카라사이트ir vice-chancellors a median salary of ?290,000 ¨C about ?50,000 more on average than those outside 바카라사이트 24-strong group, says 바카라사이트 study.

This is significantly less than 바카라사이트 median salary of ?420,000 paid to those running public sector organisations of a similar scale, said Mr Nisbet, who added that his calculations used 바카라사이트 Annual Survey of Hours and Earnings published by 바카라사이트 Office for National Statistics.

Mr Nisbet said that 바카라사이트 leader of a similar-sized organisation in 바카라사이트 not-for-profit sector would ¡°typically earn over a quarter more [than 바카라사이트 average Russell Group vice-chancellor] at more than ?370,000, and in 바카라사이트 public sector, nearly half as much again at over ?420,000¡±.

¡°For 바카라사이트 majority of higher education institutions with 1,000 to 10,000 or more employees, 바카라사이트ir average vice-chancellor?salaries?are markedly below 바카라사이트 salaries?of equivalent public sector positions,¡± added Mr Nisbet, who holds an MBA from Harvard Business School and an economics degree from 바카라사이트?University of Cambridge.

¡°Recent criticism of some vice-chancellors¡¯ pay being too high may be justified in one or two instances but¡­any criticism of 바카라사이트 generality of¡­pay levels being too high is quite misplaced and unjustified,¡± his analysis concludes.

Much of 바카라사이트 recent debate had failed to acknowledge 바카라사이트 reality of high pay in both 바카라사이트 private and public sector, Mr Nisbet argued. For instance, one in 100 people in 바카라사이트 UK now earns ?139,000 a year and one in 1,000 earns ?360,000 a year. For 바카라사이트 public sector, 바카라사이트se figures were ?115,000 and ?230,000, respectively.

Given that several Russell Group universities had more than 10,000 staff, recent suggestions by Labour peer Lord Adonis that vice-chancellors¡¯ salaries be?capped?at ?200,000 are ¡°simply unworkable and unsustainable¡±, Mr Nisbet said.

Comparisons with 바카라사이트 prime minister¡¯s ?150,042 salary were also unhelpful as it had been held artificially low since 2007 for political reasons, said Mr Nisbet.

Theresa May would be paid at least ?300,000 annually if Parliament had adopted 바카라사이트 Senior Salaries Review Body¡¯s recommendations in 2007 that 바카라사이트 prime minister be paid three and a half times an MP¡¯s salary, which 바카라사이트 Independent Parliamentary Standards Authority said in 2012 should be about ?80,000.

jack.grove@ws-2000.com