STAGGERING SCALE OF UNIVERSITY CHIEFS’ PAY
++ Average vice chancellor salary is £250,000 ++ Three on at least £500k a year ++ 126 get more than PM
SIX universities spent at least half a million pounds on their vice chancellors last year, as the average pay rose above £250,000 for the first time.
In its first annual report on the issue, the Office for Students (OfS) found that the average basic salary for a university vice chancellor rose from £245,000 a year to £253,000 a year.
The student watchdog discovered that more than 100 institutions gave pay rises to their bosses, despite ministers calling for an end to bloated salaries.
When all benefits were included, six universities paid out at least £500,000 in 2017-18, but in three of the cases it was because of extra costs associated with a change of vice chancellor.
Of the 133 institutions included in the figures, some 102 saw their top earner receive an increase in their basic pay, while 18 had no change and only 13 reduced the salary of their vice chancellor.
Some 126 institutions paid their vice chancellors less than the Prime Minister’s salary of £150,000, and around a fifth paid out more than £300,000.
The enormous sums come at a time when students are paying £9,250 a year in tuition fees, plus living expenses, and are graduating with up to £50,000 worth of debt.
The National Union of Students said: ‘With the many concerns students have over financial issues, some of the pay packets for vice chancellors are very hard to stomach.’
Jon Richards, head of education at the Unison trade union, said: ‘The OfS report demonstrates the inequality and injustice at the heart of higher education pay. Many staff struggle to make ends meet yet most vice chancellors are paid more than Theresa May.’
Of those universities paying out more than £500,000 in pay and benefits, the Open University spent the most, with a total bill of £718,000 going to two vice chancellors. It included a £255,000 loss of office payment to Peter Horrocks, who resigned last April after a staff revolt over his plans for budget cuts.
At the London Business School, Francois Ortalo-Magne, the dean, was paid £596,000, including a £95,000 accommodation allowance. The University of East London, which had a vice-chancellor depart and another arrive in the year, paid £ 592,000, including £183,000 for ‘loss of office’ to John Joughin, who resigned.
Imperial College London paid Alice Gast, its president, £576,000, including a £157,000 allowance for accommodation and associated costs. London Metropolitan University paid out £550,000, including £117,000 for loss of office to John Raftery, after he stood down as vice chancellor.
The highest basic salary went to Dame Glynis Breakwell at the University of Bath, who received £470,000. She will retire this term after being criticised for her huge pay packet, and her successor, Ian White, will earn £266,000.
A long line of ministers have urged restraint on senior salaries, but because universities are autonomous institutions, any change must be voluntary. Nicola Dandridge, chief executive of the OfS, said: ‘We understand that running a university is a significant and complex task, and it is right that those who excel in their roles should be well rewarded.
‘Despite this, where pay is out of kilter, or salary increases at the top outstrip pay awards to other staff, vice chancellors should be prepared to answer tough questions from their staff, student bodies and the public.’
A spokesman for Universities UK, which represents vice chancellors, said: ‘Our universities are world-leading and are respected for excellence in teaching, innovation and research alike. It is important they can continue to attract the strongest talent to lead them, from within and outside the sector.
‘However, it is important for universities to demonstrate that the process for determining pay for senior university staff is rigorous and that decisions are fair, explained and justified.’
‘Some of the pay packets are very hard to stomach’