A struggling Australian university has canned performance bonuses for its leaders following a?difficult period of redundancies, deficits and record executive pay.

The University of Canberra has set aside no extra payments for senior managers in 2024, after shelling out an extra $934,000 (?445,000) last year in recognition of their 2023 performance.

That year kicked off a tumultuous episode at the institution, which had recorded years of surpluses before posting a A$12 million deficit in 2023.

The shortfall grew to A$41 million last year, sparking a restructure that included about 200 voluntary and forced redundancies between late 2024 and June 2025.

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Former vice-chancellor Paddy Nixon ¨C who left abruptly at the end of 2023 ¨C was paid a sector record A$1.785 million. His package included termination and bonus payments, according to the university¡¯s newly published 2024 annual report.

Successor Lucy Johnston, who was suddenly replaced as interim vice-chancellor in September 2024, pocketed about A$1,000,005 in a remuneration package also bolstered by a termination payment and bonus.

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New vice-chancellor Bill Shorten, the former federal opposition leader who joined the university in January this year, has negotiated a lower salary than his predecessors.

Shorten said he was ¡°reasonably confident¡± that the university would ¡°break even¡± this year, with no more compulsory redundancies required. ¡°The report recognises that 2024 was a challenging year and the subsequent efforts have been hard for everyone involved,¡± he said.

Chancellor Lisa Paul said Canberra¡¯s troubles were part of a ¡°sector-wide trend¡± fuelled by reduced domestic demand ¨C the product of a strong jobs market, surging living costs and competition with other institutions ¨C and federal government policy ¡°to arrest the overseas student intake¡±.

In a foreword to the annual report, Paul said Canberra¡¯s 2024 enrolments had been ¡°significantly below management projections¡±, reducing anticipated student revenue by A$37 million.

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International education earnings nevertheless grew by about A$8 million and federal funding by about A$5 million last year. But the university¡¯s overall earnings declined by A$9 million, largely because its 2023 revenue had been bolstered by a one-off A$23 million windfall from the residential development of 15 hectares of campus land.

Meanwhile, overall institutional expenses rose by A$20 million, fuelled by a A$35 million increase in Canberra¡¯s salary bill ¨C including over A$10 million in redundancy payments ¨C and a A$11 million hike in sundry operating expenses.

The university expects to expend around A$2 million more in redundancies this year, the accounts show. Payments to consultants fell from about A$17 million in 2023 to A$11 million in 2024, but remained above the A$7 million spent in previous years.

john.ross@timeshighereducation.com