The Higher Education Policy Institute has published a new
report on whether university governors should be paid.
Payment for university governors? A
discussion paper (HEPI Report 118) by Alison
Wheaton looks at practice in other sectors, including the NHS,
housing associations and companies, as well as practice abroad.
She argues that payment is one way to improve the skills,
diversity and engagement of governing bodies in a changing
regulatory environment.
Seven English universities currently pay their governing body
chair between £15k and £25k a year. Two pay committee chairs but
no other external members. Under new legislation, upon request of
the incoming chair, Scottish universities must pay chairs and two
currently do so. The likely range will be £16k to £27k.
The report finds:
- All
NHS Trusts and many housing associations pay their governors,
with chairs earning between £20k and £40k a year. In the NHS,
other members earn between £6k and £13k. Housing associations pay
their Board members between £12k and £34k a year.
- In
Australian universities, practices vary by state. Where governing
body members are paid, the chairs earn between £25k and £76k a
year while members receive between £10k and £35k.
- Apart
from English universities, all other sectors examined have either
legislated (Scotland) or sector-led self-imposed institutional
targets relating to gender diversity. UK-listed companies also
have targets for ethnic diversity.
The report recommends:
- Sector
bodies should continue to ‘own’ the development of good
governance, including on equality and diversity.
- The
Office for Students should also consider its role in encouraging
sector-wide governance enhancements.
- A new
working group should review sector-wide governance arrangements,
particularly with regard to skills and diversity.
- The
Committee of University Chairs should consider the issue of
governing body member remuneration as part of the current review
of its Higher Education Code of Governance.
Alison Wheaton, a doctoral research student at UCL’s Institute of
Education and author of the report says:
‘The issue is not simply whether English universities should pay
their governors. First we need to address what kind of governance
is required in the future in terms of skills, diversity and
engagement. Paying governing body members may be one of many
available tools.
‘The volunteer model of governance is under severe strain. The
pressure comes from practices in other sectors, candidates’
expectations, as well as the new regulatory environment. This all
increases the time and breadth of skills and experience required
of governing body members.’
, Director of HEPI, said:
‘The regulation of English higher education institutions has been
transformed in recent years. The Office for Students, in
particular, expects governing bodies to take a deeper interest in
both academic issues and issues of access, as well as other
contested areas – like free speech and senior staff pay.
‘But there is compelling evidence that the quality of governance
in our sector has not kept pace with the volume of change. We
need more professional and more diverse governing bodies to
reflect the new world. Other sectors and other countries have
already moved to paying Board members. The time is ripe for a
much more serious conversation about whether the broad sweep of
English universities should now do the same.’
