Survey shows salaries of university heads rose by an average of £12,000 in one year, Anthea Lipsett writes.

The salaries of university chiefs rose by more than twice that of academic staff in 2005-06, according to The Times Higher ‘s exclusive annual vice-chancellors’ pay survey.

Vice-chancellors earned an average of 7.9 per cent more in 2005-06 than in 2004-05, according to an analysis of official figures for vice-chancellor pay published by universities. In the same period, academic salaries rose by just 3 per cent. Between 2004-05 and 2005-06, the average pay packet - including benefits but excluding employer pension contributions - for vice-chancellors grew by £12,044, from £153,061 to £165,105.

The highest earner was Laura Tyson, former director of the London Business School at £322,000. The next best paid was Sir Richard Sykes, rector of Imperial College London, who received £290,000, followed by Michael Sterling of Birmingham University, £250,000.

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Vice-chancellors of Russell Group institutions earned the highest salaries, averaging £217,9 in 2005-06, a rise of 8.2 per cent. Heads of institutions in the Campaigning for Mainstream Universities group earned Pounds 167,595 on average, up by 7.9 per cent; while leaders of 1994 Group institutions earned £177,651 on average, up 6.7 per cent.

Those in charge of institutions in the Alliance of Non-Aligned Universities received £180,226 on average, a rise of 7.3 per cent.

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The survey also reveals huge pension contributions made to some vice-chancellors, either as one-off or retirement payments.

The University and College Union, whose dispute last summer secured a 10.4 per cent pay increase over the years 2006 to 2008, condemned the rises.

Sally Hunt, the UCU’s joint general secretary, said now was a time for unity between management and staff to defend academic values and secure better funding.

But she said: “The handsome rewards for those at the top threaten this vital unity and send exactly the wrong message to university staff.”

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Universities UK said most university staff had enjoyed percentage rises close to vice-chancellor levels after transfer to new pay and grading structures.