Universities sign new ‘fair-pay’ code to regulate the pay of vice-chancellors’

A new code governing the fair-pay of vice-chancellors’ within UK universities will be introduced next month.

The Universities Minister, Jo Johnson, met with university leaders from Universities UK, the Russell Group, and the Committee of University Chairs to discuss a new code of practice. He called for greater restraint over pay, speaking out against the “upward spiral” of vice-chancellors’ salaries. He said “public confidence” over pay had to be restored.

The ‘fair remuneration code’ sets out a new set of requirements. This includes the requirement that vice-chancellors’ must not sit on the committees that decide their pay. Universities will also have to publish details on the size of pay gaps between university heads and academic staff. Furthermore, senior staff will have to disclose any benefits they may receive, such as subsidised housing and expenses.

The minister has also advocated a more transparent and independent system for the setting of senior salaries.

A Russell Group spokesperson said: “We agree more needs to be done to ensure the process for deciding senior pay is viewed as open and accountable.”

University vice-chancellors earn £280,877 on average… a figure that has risen by 15 per cent in five years

This story comes in the wake of the vice-chancellor of the University of Bath resigning following criticism over excessive pay. Dame Prof Glynis Breakwell, the UK’s highest-paid vice-chancellor, earned a salary of £468,000. Former Education Minister Lord Adonis said it was “shameless and outrageous”. Bath Students Against Cuts and Fees said it was “unacceptable”.

The row spread to other universities after it was revealed that Southhampton University’s vice-chancellor was on the committee responsible for awarding him a £433,000 pay package.

It has been revealed that university Vice-chancellors’ earn £280,877 on average a year, a payment that has risen by 15 per cent in five years.

Earlier this month, university executives criticised the government’s move to set vice-chancellors’ pay in line with that of the Prime Minister at £150,000. Jo Johnson has given the Office for Students, a new regulatory body, the power to fine institutions that cannot justify why their vice-chancellor earns more than Theresa May.