Vice-chancellors at Russell Group universities received mainly modest salary increases last year despite facing fresh criticism over their so-called “fat cat pay�, new figures show.
Just five Russell Group vice-chancellors enjoyed a salary increase in excess of the 2 per cent rise awarded to rank-and-file university staff in 2014-15, according to a ÌÇÐÄVlog analysis of 22 of the group’s 24 members.
Some even saw their overall pay package fall, including Sir Leszek Borysiewicz, vice-chancellor at the University of Cambridge, whose total remuneration dropped by 5.5 per cent from £344,000 in 2013-14 to £325,000 last year owing to lower pension contributions by his employer.
Craig Calhoun, director of the London School of Economics, saw his overall remuneration fall by 3.3 per cent from £394,000 to £381,000 in 2014-15.
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Overall, the average salary for a Russell Group vice-chancellor was £321,830 last year once taxable benefits were included. Once pensions are included, it was £355,664 – 6 per cent higher than the equivalent remuneration in 2013-14.
Blog: Should we still be talking about vice-chancellors' pay?
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However, that dramatic increase is largely caused by the costs incurred by Durham University last year as it replaced its then vice-chancellor and warden, Chris Higgins, in October 2014 with an interim vice-chancellor, Ray Hudson.
As part of “transitional arrangements�, Professor Higgins continued as a pro vice-chancellor until his retirement in June 2015, for which he was paid a total of £268,000 as well as £82,000 “at the conclusion of his role as an ambassador for the university�, Durham’s annual accounts state.
With Professor Hudson also paid £243,000 that year for his executive role, Durham’s total cost of office in 2014-15 stood at £593,000 – more than double that paid in 2013-14.
Once Durham is removed from calculations, remuneration of Russell Group leaders, including pensions, increased by just 1.9 per cent on average last year. Average pay, including pensions, stood at £344,362.
The total remuneration of £430,000 paid to Alice Gast in her first year as president and rector of Imperial College London was 10.5 per cent more than the £389,000 paid to outgoing head Sir Keith O’Nions in 2013-14.
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One of the highest basic pay rises went to Sir Eric Thomas, former vice-chancellor of the University of Bristol, whose total remuneration in his final year in office rose by £23,000 to £344,000, a 7 per cent increase.
The highest-paid vice-chancellor in the Russell Group was Andrew Hamilton at the University of Oxford, who received a total pay, pension and benefits package worth £462,000 last year.
Other vice-chancellors to earn above £400,000 last year include the University of Birmingham’s Sir David Eastwood (£416,000) and the University of Bath’s Dame Glynis Breakwell (£406,000), latest financial accounts show.
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Wendy Piatt, director general of the Russell Group, said the salaries of vice-chancellors and other senior staff at its universities are “commensurate with remuneration for running extremely complex, highly successful international organisations with average annual turnovers of more than half a billion pounds�.
“The remuneration committees which decide these salaries are acutely aware that to continue the global success of these institutions, world-class leadership and academic talent is required, particularly through uncertain times,� said Dr Piatt.
“Universities are autonomous institutions and it is vital that they are free to recruit and retain the necessary leadership to remain globally competitive,� she added, saying that institutions would “continue to work closely with staff and unions to ensure that we provide competitive but sustainable pay and conditions for our highly-valued staff�.
Top Russell Group pay packages in 2014-15
| Vice-chancellor | University | Salary, including benefits, 2014-15 (’000) | Total remuneration, including pensions, 2014-15 (’000) |
| Andrew Hamilton* | University of Oxford | 407 | 462 |
| Ed Byrne | King’s College London | 402 | 458 |
| Alice Gast | Imperial College London | 374 | 430 |
| Sir David Eastwood | University of Birmingham | 416 | 416 |
| Sir Steve Smith | University of Exeter | 341 | 393 |
| Sir Keith Burnett | University of Sheffield | 385 | 385 |
| Craig Calhoun | London School of Economics | 331 | 381 |
| Sir David Greenaway | University of Nottingham | 295 | 381 |
| Michael Arthur | University College London | 359 | 359 |
| Sir Nigel Thrift | University of Warwick | 349 | 349 |
| Sir Eric Thomas* | University of Bristol | 303 | 344 |
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*Has since left institution
Figures rounded to the nearest thousand
POSTSCRIPT:
Print headline: Fat cat slur sticks as pay inches up
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