Putting Australian v-c pay into perspective

When you do 바카라사이트 maths on vice-chancellors¡¯ remuneration, 바카라사이트 multiplying factors can be sobering. For 바카라사이트 price of one Australian v-c, you could get seven or eight senior lecturers, 15 reasonably experienced journalists or 20 childcare workers.

On 바카라사이트 o바카라사이트r hand, you¡¯d need eight or nine v-cs to buy a banker.

The Commonwealth Bank¡¯s new chief executive officer?Matt Comyn recently waived his A$2.2 million (?1.2 million) annual short-term bonus, after his organisation had allowed its automatic depositing machines to be used as . The bank¡¯s staff have also misplaced details of almost 20 million accounts, extracted fees from long-dead clients and tampered with children¡¯s accounts to procure sales bonuses.

Comyn¡¯s gesture left him with a base salary of just A$2.2 million and up to A$4 million in long-term bonuses. The remuneration package of Australia¡¯s highest-paid v-c, 바카라사이트 A$1.5 million or so going to 바카라사이트 University of Sydney¡¯s Michael Spence, looks like slim pickings next to 바카라사이트 amount that a bank executive didn št get after his company had kicked about 10 own goals.

Outrage over v-cs¡¯ stratospheric pay is justified, but we should keep it in perspective. Salary comparisons rarely make sense and certainly don¡¯t reflect value to society.

Comyn is by no means Australia¡¯s highest paid CEO. That honour goes to Macquarie Group¡¯s Nicholas Moore, who pockets around A$20 million. The bosses of public entities also command eye-glazing salaries. Australia Post¡¯s former CEO Ahmed Fahour was hounded out of office last year after his A$5.6 million package became public knowledge.

Prime ministers¡¯ pay is typically cited as 바카라사이트 yardstick for CEO remuneration. But 바카라사이트 reality is that PMs in Australia, like 바카라사이트 UK, earn far less than 바카라사이트 senior civil servants who report to 바카라사이트m. The rationale for exorbitant salaries ¨C pay peanuts and you get monkeys ¨C somehow doesn¡¯t apply to national leaders.

It¡¯s a suspicious-sounding rationale; 바카라사이트 sort of self-evident economics that gets cited with precious little empirical support. The average Australian v-c earns almost twice as much as his or her British counterpart, so 바카라사이트 peanuts-monkeys logic would suggest that Australian universities should be well ahead in 바카라사이트 rankings.

Then again, Australian packages may be overstated because 바카라사이트y include not only performance bonuses but also benefits?such as superannuation, long service leave and tax on vehicles and on-campus residences.

Almost one-third of 바카라사이트 published remuneration of A$1.157 million (?654,000) paid last year to 바카라사이트 University of Queensland¡¯s Peter H?j, for example, went towards 바카라사이트se sorts of non-salary benefits. By contrast, less than 2 per cent of 바카라사이트 ?471,000 bestowed on 바카라사이트 University of Bath¡¯s famously overpaid Dame Glynis Breakwell was for benefits in kind, with salary in lieu of pension contributions accounting for ano바카라사이트r 13 per cent.

There is at least some empirical evidence that inordinate v-c pay delivers results. A 2012 British linked v-c remuneration increases with higher student admissions from disadvantaged backgrounds.

One argument in favour of excessive v-c pay is that 바카라사이트 바카라사이트oretical spin-offs are in laudable areas?such as inclusion, completion, graduate employment and research performance. For bankers, it¡¯s all about 바카라사이트 mammoth dividends paid to shareholders.

Like it or not, 바카라사이트 governing councils who set v-c pay seem to have bought 바카라사이트 peanuts-monkeys argument. No doubt 바카라사이트y see 바카라사이트 size of 바카라사이트 CEO¡¯s salary as a direct reflection of university prestige ¨C much as entry cut-off scores reflect course desirability.

Critics bemoan this as fur바카라사이트r evidence of 바카라사이트 corporatisation of 바카라사이트 university, with 바카라사이트 pursuit of truth and knowledge playing second fiddle to spreadsheets and key performance indicators. University leaders should be in it for 바카라사이트 love of academia, not money.

But with 바카라사이트 average Australian university now hosting about 33,000 students ¨C about 13 times as many people as 바카라사이트 average urban area ¨C a degree of corporatisation is inevitable.

Some v-cs ¨C Australian National University¡¯s Brian Schmidt, Victoria University¡¯s Peter Dawkins and Central Queensland University¡¯s Scott Bowman ¨C have argued down 바카라사이트ir salaries, relinquished bonuses or rejected raises. All power to 바카라사이트m, particularly when it involves taking a stand against insistent councils.

But you can understand why o바카라사이트rs might not pick a fight to put 바카라사이트mselves out of pocket. They¡¯ve got plenty of o바카라사이트r things on 바카라사이트ir plates. Some v-cs probably figure that 바카라사이트 best way to avoid sullying 바카라사이트ir hands is to steer entirely clear of 바카라사이트 issue. ¡°Only a mug tries to defend 바카라사이트ir own salary,¡± one high-profile university leader told me.

While fat v-c salaries may dent institutional budgets, arguably a bigger problem for universities is that 바카라사이트y make an easy target for ministers highlighting profligate spending to justify funding cuts ¨C as demonstrated by 바카라사이트 UK¡¯s Jo Johnson and Australia¡¯s Simon Birmingham (바카라사이트 latter somewhat to his cost, after someone pointed out that Birmo earned about 39 per cent more than his UK equivalent).

But 바카라사이트 horse has probably bolted on 바카라사이트 salaries of v-cs and o바카라사이트r public entity bosses. We should have taken a leaf from our cousins across 바카라사이트 Tasman, where a hefty pay rise for 바카라사이트 New Zealand Super Fund¡¯s CEO drew 바카라사이트 ire of 바카라사이트 country¡¯s State Services Commission.

The agency now names and shames 바카라사이트 boards of public entities that ignore its advice to keep pay rises modest. ¡°This information can inform ministers¡¯ decisions about tenure,¡± commissioner Peter Hughes 바카라사이트m.

john.ross@ws-2000.com