University chiefs' pay over 拢150,000 will have to be justified
Higher education establishments will be forced to explain why some of their staff can earn up to 拢450,000.
Thursday 7 September 2017 22:31, UK
The six-figure salaries of University vice chancellors will have to be justified under new measures being introduced by the universities minister.
Addressing the Universities UK conference, Jo Johnson said he wanted the men and women who run Britain's universities to be "good stewards of their resources".
The minister told them: "It is of course true that many of our universities are large and complex organisations, requiring highly skilled individuals to run them effectively. Some will be competing for managerial talent in a global market.
"But it is important to remember that universities are generally still charities with a not-for-profit public service mission and that, when it comes to vice chancellor remuneration, finding the right benchmarks is essential.
"I have heard in recent days one prominent vice chancellor noting she was paid less than footballers or bankers. If university managers want those kinds of wages, they are simply in the wrong business."
The vice chancellor of Reading University Sir David Hill said he welcomed greater transparency.
He said: "The decisions about pay and other aspects of remuneration are not made by vice chancellors, they're made by members of our governing body. And I think it's entirely appropriate for them to think about how they make those decisions."
There has been criticism of the salary levels of vice chancellors. Most earn more than the Prime Minister and have generous pension packages as well as grace-and-favour homes.
A recent survey in the Times Higher Education magazine found that the top 10 highest paid vice chancellors received salaries of between £381,000 and £451,000 in 2015-16.
Under the new plans, universities will be forced to reveal how many staff earn over £100,000, and will have to justify the salaries of anyone on more than £150,000.
There will also be a new regulator, the Office for Students (OfS), which will monitor pay levels. And if universities fail to comply, they could be fined.
Mr Johnson said with over 70% of university funding coming from the taxpayer, greater scrutiny was needed.
Union representatives said his speech was good news and long overdue.
Sally Hunt from the University and College Union said: "For once, a trade union leader is going to say 'well done' to a Tory politician.
"I think Jo Johnson has done something very important today. He's signalled that where you have public finances and family finances going into fees, you have to have accountability and transparency, particularly from those at the top."