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Bonuses and rises boost v-c pay despite voluntary cuts for Covid

Accounts show two leaders departed roles with payments of almost 拢200,000 while others received inflation-busting uplifts to salaries

Published on
January 21, 2021
Last updated
January 21, 2021
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Two UK vice-chancellors left their roles with extra payments of almost 拢200,000 last year, while others continued to receive pay rises above those of rank-and-file staff, latest university accounts show.

Bill Rammell, who stepped down as head of the University of Bedfordshire at the end of 2019, before the onset of the coronavirus pandemic, left with a 拢187,000 鈥渃ompensation for loss of office鈥 payment on top of his salary, the institution鈥檚 financial statements show.

And accounts from the University of Exeter confirm that Sir Steve Smith, who retired last year, left with a 拢185,200 bonus for meeting the conditions of a 鈥渓ong-term incentive scheme鈥 first detailed in 2017-18.

It meant that he was still awarded a total of 拢584,000 by the university in 2019-20 even though he volunteered for a聽pay cut of 拢25,000 because of 鈥渢he potential financial difficulties the university faced as a result of the Covid-19 pandemic鈥.

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Sir Steve was not alone in the Russell Group in taking such a cut as the pandemic hit in the latter months of 2019-20, only for the effect of the sacrifice to be counteracted by other payments or increases that had already been determined.

Dame Minouche Shafik, director of the London School of Economics, took a voluntary 20聽per cent cut in salary from June 2020, which is expected to continue into this year, because of the Covid crisis.

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However, a 6聽per cent rise in her basic salary in 2019-20 to 拢378,000 鈥 resulting from the LSE鈥檚 remuneration committee restoring a portion of salary she had previously waived 鈥 pushed her overall remuneration up by 3聽per cent to 拢507,000, including accommodation benefits.

Some Russell Group leaders did see their overall pay fall last year because of voluntary cuts, with average total remuneration for the 17 universities that have reported so far declining by 2.6聽per cent to聽拢386,000.

But Jo Grady, general secretary of the University and College Union, said 鈥渆ye-watering salaries for vice-chancellors while some staff struggle to make ends meet鈥 were a 鈥渟ource of shame for the university sector鈥.

鈥淢ost staff have seen their pay held down while spending the year under huge strain working to support students during the pandemic. There is a gaping chasm between how they and vice-chancellors have been treated,鈥 she said.

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There were also some eye-catching rises outside the Russell Group that were way above the basic 1.8聽per cent pay award for rank-and-file staff in 2019-20.

Peter John, vice-chancellor of the University of West London, saw his salary rise by 8聽per cent to 拢320,000 and his overall remuneration climb by 15聽per cent to 拢393,000 鈥 higher than many Russell Group leaders.

A spokeswoman said the salary uplift was 鈥渂ased on the outstanding achievements of the university in 2018-19. These were driven by an ambitious strategic plan and the vice-chancellor鈥檚 leadership, particularly around social mobility and widening participation.鈥

Bedfordshire said Mr Rammell鈥檚 loss of office payment 鈥 which was 鈥渋n聽line with sector norms鈥 鈥 was made to enable a 鈥渟peedy transition鈥 to new leadership because he and the governors 鈥渄id聽not want a protracted period of handover鈥.

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The accounts mention 鈥渃oncern about the fall in student satisfaction鈥 during Mr Rammell鈥檚 tenure, but a聽spokeswoman said his departure 鈥渨as not connected鈥 to聽this.

At Exeter, Sir Steve 鈥 who became the government鈥檚 international education champion upon leaving the university 鈥 was also in line for two additional retention payments amounting to more than 拢200,000 if he met certain conditions set out in the 2017-18 accounts, although these are expected to be reported later.

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simon.baker@timeshighereducation.com

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Reader's comments (3)

It is the percentage increases as much as the now admitted extremely high salaries that are the biggest issue. Like most staff in HE, I will get no pay rise this year since the annual one has disappeared in the light of the pandemic. It would show some understanding if VCs were to waive or give to charity the extra income that has come at this time.
Yep the VC gravy train continues why should they get bonus payments why not allow bonus payments for the academic staff that do the work? The same with other parts of management in Universities getting bonus payments is not acceptable do your job without them as the academics that do the actual teaching and research do. There should also be an investigation of the renumeration committes that they stuff with their buddies. Leave it to the academics to determine renumeration of VCs and any pay-offs.
That phrase 'compensation for loss of office" is an interesting one. What does it actually mean? I remember when as an ancient lecturer I "stepped down" (i.e. retired) from my own august institution that I suffered my loss of office (they let me keep the old laptop, thanks) with no compensation at all. They wouldn't pay for a van to take all my accumulated stuff home but hey. However Bedfordshire's assertion that the payoff is in line with sector norms (they mean just for VCs that outstay their welcome) is belied by the 拢429,000 that Christina Slade got for LOO when she stepped down from Bath Spa University. And on the other side of the desk Sally Hunt the ex-UCU boss got a 拢400,000 "post employment" golden goodbye according to published accounts, with no explanation why. I hope Jo Grady remembers when her time comes. Sir Steve gets a 鈥減erformance-related award鈥 which is linked to meeting 鈥渓ong-term performance targets鈥. Any university looking to replace its coat of arms could consider a Lake of Gravy with a crest of a Wreath Argent holding aloft a Wrecked Train.

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