The Minister called on universities to deliver greater
transparency and independence of remuneration
committees, stricter oversight of severance pay, and
the publication of the pay ratio of top to median
salaries of all staff.
Minister Johnson addressed representatives from
Universities UK, the Russell Group and the Committee of
University Chairs (CUC) about the need for stronger
public accountability, ensuring public confidence in
the way universities are run. He also set out that
university governance arrangements must be up-to-date
and fit for purpose. The Minister welcomed UUK, CUC and
Russell Group’s willingness to work together to tackle
this issue at pace.
Universities Minister said:
It is vital that pay arrangements command public
confidence and deliver value for money for students
and taxpayers.
We need to see restraint that ends the upwards
ratchet in pay and the use of benchmarks that are
appropriate for a system in receipt of significant
public funding.
The new Office for Students (OfS) will use its powers
to ensure full transparency and accountability with
respect to senior pay.
In January, the CUC will be publishing a new and robust
Fair Remuneration Code, which Minister Johnson called
for at the Universities UK
conference in September 2017.
The Minister expects the following requirements to be
included:
- The procedure for developing senior staff
remuneration should be fully transparent.
- Vice Chancellors must not be a member of the
remuneration committee that decides their own pay.
- Remuneration committees should be constituted of
members who are independent of the provider.
- All providers should publish a clear and accurate
pay ratio i.e. top (vice chancellor or equivalent) to
median of all staff (including Academic staff,
Professional Services staff and Professors).
- There should be full disclosure of all senior staff
benefits, including subsidised housing, expenses and
any other non-taxable benefit.
The Minister believes that universities should start
adhering to these principles of fair remuneration
immediately.
From next year the new regulator, the OfS, will go
further to ensure transparency and accountability from
our universities, with justifications required for
exceptional levels of pay above £150,000.
The Minister will be asking the OfS to write to all
higher education providers to remind them of their
responsibilities regarding good governance and public
accountability.
