endobj I have reviewed over 6,000 pages of Australian public universities 2021 annual reports and financial statements to extract the information in the table below. Note 2: the majority of universities disclosed vice chancellor salary under the section Remuneration of Executive Officers/Key Management Personnel. The pay of Australias top-earning university leader the University of Sydneys Michael Spence, who is on A$1.4 million was nearly twice that of the UKs best-remunerated vice-chancellor last year, Bath Spa Universitys Christina Slade, ironically an Australian whose 808,000 package included a 429,000 exit payment. But just keeping the water and the power on requires a six-week horizon.. University of Melbourne vice-chancellor Duncan Maskell is due to become Australias highest-paid vice-chancellor from next month.Credit: Justin McManus. Most Victorian university vice-chancellors either took a pay cut or donated their salary increases to student hardship funds in 2020, although the three highest-paid university heads were still on total salary packages of more than $1 million. Accordingly, this article advances understanding of the issue by exploring the dynamics of VC remuneration in the context of governance changes in universities as they have become progressively marketised. 3099067 Cited by lists all citing articles based on Crossref citations.Articles with the Crossref icon will open in a new tab. This work is licensed to the public under the Creative Commons Creative Commons Attribution 4.0 International License license. A spokesperson for the University of Melbourne said the gross remuneration figure published in the universitys annual report did not take into account the pay cut he and other senior executives took for six months. Australian vice-chancellors join the millionaires' club In the first half of the twentieth century, they were largely funded by the states, . To request a reprint or commercial or derivative permissions for this article, please click on the relevant link below. 3234). 19 0 obj RMIT University vice-chancellor Martin Bean, who is due to resign this month. endobj Although we draw on empirical examples from both Australia and the UK, this is not a comparative article. Job losses were huge: 465, although the real number is probably higher with contracts not renewed and casuals let go. << In 1975, our research suggests, vice-chancellors at elite Australian research-intensive universities received about 2.9 times the pay of regular lecturers on Level B the second-lowest and most numerous academic grade. We argue that this area requires urgent governance reform. 2020 will be a different story. This system persisted until the late 1990s, when it was replaced by decentralised local enterprise bargaining, consistent with more managerialist employment practices (Anderson et al., Citation2002), under which academic salaries were determined by each university. It will be hard for an incoming Labor government not to put the screws on those universities that made money while laying off staff.. /R7 57 0 R The Office for Students (OfS) has published new analysis on the pay of senior university staff in England. We first conceptualise remuneration and argue that its form and size are determined by organisations social, economic, legal and structural dynamics, formalised through regimes of endogenous and exogenous governance control (Marginson & Considine, Citation2000; Rowlands, Citation2017). In only 11 Australian universities were VCs formally excluded from such deliberations. In particular, governing councils and, exogenously, governments came to assume principal-like roles with VCs as their agents (Kivist, Citation2008). Fourth, stewardship is marked by high commitment and trust, but agency seeks to minimise risk through control systems that cast individuals as economically self-interested actors (Davis et al., Citation1997, pp. It should oversee and administer appropriate and transparent remuneration of vice-chancellors and senior staff. We use cookies to improve your website experience. Further, there is a demonstrated link between these increases and formulaic pay-setting mechanisms such as benchmarking (Gschwandtner & McManus, Citation2018). In examining the public university annual reports for 2021, there are no disclosures per the voluntary code. Second, principals can align agents interests to their own using remuneration managers will seek to maximise shareholder wealth if they share in it (Jensen & Meckling, Citation1976). >> Unless the report stated otherwise, it was assumed that VCs were not entitled to additional remuneration due to also being a council member. ANU started racking up a $160 million deficit the second-largest deficit in Australian higher education history but $50 million less than predicted. But I pointed out I could still say, Ive got a Nobel Prize. We didnt need a signal. Another is for a meeting for casual staff or whats left of them to discuss their wellbeing. Turning to the highest paid vice-chancellor in Australia, The University of Melbourne's Professor Duncan Maskell's salary is $1,469,999, a pay cut of $44,000 from 2020. Attila Csaszar. Following Jarratt, the government established a series of national funding councils that allowed it to steer universities at a distance using financial levers (Shattock, Citation2012). /Font 55 0 R endobj The estimated base pay is $97,675 per year. It is significant, but not surprising, that the ratio was far lower when all remuneration was centrally set or regulated. When universities are challenged about these salary packages, they say vice-chancellors run complex businesses in competitive global markets, and their salaries reflect the work done and results achieved. As such, they dont have controlling owners/shareholders. By 2018 they were earning 16 times as much. When very small institutions with an income of less than 30 million a year [AUD $54,442,074] are excluded, the ratio of total mean VC remuneration to total other mean staff remuneration in the English universities was 8.2 (data for Scotland and Wales is not available for this year) (OfS, Citation2020). >> This approach was abandoned as marketisation set in. Governance regimes play a central role in the distribution of organisational power and determine the approaches used for fixing remuneration. Until the 1990s, academics were the primary collegial decision makers and VCs were primus inter pares (Marginson & Considine, Citation2000; Shattock, Citation2017). /ExtGState 48 0 R /ExtGState 21 0 R Australian Public Universities Vice-Chancellor Salaries and Workforce Casualisation: Ethical Tension? 8 0 obj endobj In fact, Sydney University increased the number of students who were willing to learn online from China. In 2020, the president of the world's top university, Harvard, received only $60,000 more than Australia's then best-paid vice-chancellor, the University of Sydney's Michael Spence. This would require considerable political will, but there is little evidence of an appetite for that. That power is expressed through ANUs seven deans. /Filter /FlateDecode Fifth, stewardship tends to be collectivist whilst agency is individualistic (Davis et al., Citation1997, pp. For instance, a vice-chancellor may start in May and have eight months of remuneration recorded. Six universities in England paid their vice-chancellors 500,000 or more in salary, bonuses and benefits last year, while nearly half of all VCs received more than . endobj /R12 60 0 R >> As Table 2 starkly reveals, this ratio has increased very considerably since then. /Contents 23 0 R Rockhampton-founded Central Queensland University has posted a $24.3 million loss while the Vice-Chancellor and President Professor Nicholas Klomp was paid an annual salary of up to $794,999, the . /Parent 2 0 R If I was to be paid three times more than the next best-paid person at ANU, then I am basically saying, I am different to you; I am not of your ilk, he says. In agency terms, we argue that this apparent over-compensation of VCs has two root causes. After 1945, the University Grants Commission (which channelled government funding) determined salaries and pay scales in consultation with the academic union. Whilst agency theory posits a strong correlation between performance and pay, empirical research has demonstrated only a weak relationship between corporate executive pay and organisational performance (e.g., Gritsko et al., Citation2013; Marshall, Citation2017). Australian universities are a millionaire factory for those who can scratch their way to the very top with the top 10 highest paid vice-chancellors all raking in million-dollar salary packages over the previous year. The Australian asked whether it was reasonable that Vice Chancellors from top universities were earning salaries over $1 million, and the average salary across Australian Vice Chancellors was almost . "Dr Spence is going to get half of what he does now, in a far more prestigious university," says Tom Smith. Murray also recommended that universities be funded by specifically targeted recurrent triennial grants from the federal government, distributed via the states. In 2004, a new academic pay framework and salary spine were agreed with the unions, allowing some local flexibility based on job evaluation, in response to the growing realisation that academic salaries were not competitive (Rani, Citation2009). However, Processor Maskells salary also includes an off-campus residence that accounts for $331,000 of his full remuneration. 370,677 (2021-22) [1] Michael James Spence AC FRSN (born 10 January 1962) is an Australian university administrator who served as the Vice-Chancellor and Principal of the University of Sydney from 2008 to 2020. Register to receive personalised research and resources by email. Universities have prioritised corporate efficiency and profitability, shifting the balance of power further towards senior managers. << Australias National Tertiary Education Union, however, has raised concern that vice-chancellors earned eight times the salary of senior lecturers in 2017. If universities are indeed publicly owned and operate in the public interest, then greater transparency and accountability about vice-chancellors salaries are necessary. The daily e-news column receives no undisclosed funding or other assistance from any organisation or individual. endobj As in Australia, these increases are not indicative of general remuneration increases in the sector. Meanwhile, Monash University boss Margaret Gardners salary dipped below A$1 million because of a change in her pay cycle. This arrangement came to an abrupt end in the 1980s under Margaret Thatchers governments (Shattock, Citation2006). 7. Canadian-based higher education strategist Alex Usher said vice-chancellors in his country were not paid anywhere near their Australian peers. People overseas are scrambling to come and run a university here. /ProcSet [/PDF /Text] VCs were to serve as chief executive officers of universities that were, in turn, expected to be more business-like and entrepreneurial (Harman & Treadgold, Citation2007). University of Melbourne vice-chancellor Duncan Maskell was the states highest paid vice-chancellor last year thanks to an official remuneration package of just over $1.5 million. The salary of University of South Australia VC, David Lloyd, was $1.2 million in 2020 when his university was ranked a lowly 354. Brian Schmidt, the world's only Nobel Laureate to head a university, was Australia's lowest paid vice-chancellor in 2020 pushing his earnings to nearly half the sector average. There is no evidence of a system of performance-based bonuses. Yet, despite the eye-watering sums, executive pay remains less of a hot . The position reports to the Vice-Chancellor and President, and leads a focused team-set strategy to deliver on the university's global activites and initatives. In 2018-19 vice-chancellors received nearly 350,000 (A$635,000) on average. Exogenously, significant public funding to universities in both the UK and Australia justifies governments acting as principals but, in both nations, governments have currently restricted themselves to relatively weak, hands-off, market-based regulation, consistent with the shift to steering from a distance approaches described earlier. golden cooking wine substitute,

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