vice chancellor salary australia 2020

<< Egan Associates Principal John Egan was recently quoted by a number of media publications on the topic of University Vice Chancellor remuneration. Top 10 Vice-Chancellor Salary Packages; Rank Uni VC Name Salary Package ($) 1: University of Melbourne: Glyn Davis* 1,589,999: 2: University of Sydney: Michael Spence: . VCs remuneration, in contrast, has always been at the discretion of each university with no external controls. Another four have sacrificed 10 per cent, two have made one-off donations and another is considering how much to forgo. The propertys name is Maipenrai a Thai word meaning shell be right, no worries that they inherited from the previous owner. >> 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. Publicity around increased disclosure has so far done little to rein in salary increases. It is significant, but not surprising, that the ratio was far lower when all remuneration was centrally set or regulated. SolenSoftware Actavia 3.4 (Journal system) /Contents 36 0 R /ExtGState 51 0 R No one was going to care.. RMIT vice-chancellor Martin Bean who is due to resign this month took a small pay cut of about $10,000 and received a remuneration package of $1.1 million. /Kids [5 0 R 6 0 R 7 0 R 8 0 R 9 0 R 10 0 R 11 0 R 12 0 R 13 0 R 14 0 R The NTEU said that academic salary increases had ranged from 4.5 per cent at one university to zero at five others, with the timing of enterprise negotiations affecting some pay rises. True Dr Spence's estimated salary is $1.6 million but the UCL president earned $736,000 in 2018-19. 11 0 obj %Bsa3, DETUROPE - The Central European Journal of Tourism and Regional Development. Exogenously, university governance in England (Scotland, Wales and Northern Ireland have somewhat different systems) now consists of loose state regulation of the emerging competitive higher education market through the Office for Students. I have everything I want in life, says Schmidt. * VC names with an asterix * are no longer working in that position. Qld university bosses pay packets drop but still dwarf Premier, PM /Resources << Evaluation Activities - Generally encompass . When Schmidt was 13, they landed in Anchorage, Alaska, where his father worked on an environmental impact study of a proposed dam (it never got built). Professor Gardner donated her pay rise to a student hardship fund, Monash Universitys annual report states. These posts are also variously named president, principal or rector. But for me, wanting to be connected to my staff, and not actually caring about money, that is a good way of expressing it to my staff. /Contents 56 0 R But just keeping the water and the power on requires a six-week horizon.. 1 0 obj Million-dollar salaries for Australias vice-chancellors are becoming the norm even as drastic cost-cutting measures have resulted in the loss of tens of thousands of jobs and dozens of courses. The salary gap between Australias university bosses and their staff has widened after solid pay rises launched more vice-chancellors into the million-dollar club. /Type /Page Male vice-chancellors have probably passed that milestone already, with their remuneration averaging A$955,000 in 2017, up about 5 per cent on the previous year. They are worried about cybersecurity and foreign interference. /ProcSet [/PDF /Text] However, that literature does not address, because the methodology is unsuited, the governance factors that determine the allocation of remuneration. Indeed, some of Australias most highly paid vice-chancellors are attached to universities with relatively small budgets and well outside the worlds top-ranked institutions. It was wrong to say Australia had to pay more to lure top talent. Earlier, we noted that agency theory posits that principals and managerial agents both seek to maximise their own financial position at the expense of the other (Ross, Citation1973). All my excess money I donate. Page updated 15 Price 2020 . New governance arrangements triggered the trend and might be needed to rein it in. Table 1 expresses the ratio of VCs salaries to the starting salary for the most junior level teaching and research academics at three Australian universities from 1975 to 2018. 2022-02-20T17:38:29+01:00 << Journal Executives get paid more than their work is worth, but less than the cost shareholders would incur in more closely monitoring them and executives are freed up to act entrepreneurially. Whilst governments may promise greater oversight, little appears to change. Vice-Chancellor and President Professor Deborah Terry AO. Vice-President/Deputy Vice-Chancellor, Global - UNSW Sydney /XObject 45 0 R We both remember the interaction.. There is evidence that remuneration setting tools, such as remuneration tournaments and benchmarking, are influential in driving up remuneration. Crucial to this was recognising the Vice-Chancellor not only as academic leader but also as chief executive of the university (CVCP, Citation1985, para 5.5d). /Type /Page How Much are the Leaders of our Universities Worth? Benchmarking therefore casts an aura of market-based objectivity, but is essentially self-fulfilling (Essaji & Horton, Citation2009). The typical remuneration package for the heads of the countrys 38 public universities stood at A$913,000 (519,000) last year, with vice-chancellors pocketing average increases of 5.1 per cent more than double the raises doled out to academics and general staff. Julie's exceptional leadership, unique perspectives and range of experiences have been invaluable >> Thats true at Harvard and Oxford and more so at ANU than any other Australian university.. It is that unpleasant of a job sometimes, and I have better things to do with my life. DETUROPE - The Central European Journal of Regional Development and Tourism 2021, 13(3):130-141, doi: 10.32725/det.2021.023 He says winning the Nobel Prize has not changed him, although it is a wonderful door opener. /MediaBox [0 0 595 842] (PDF) Paying the piper: the governance of vice-chancellors endobj 2. In January, we were delighted to welcome the Hon Julie Bishop to our University's most senior office: the first woman appointed Chancellor of ANU. That is, university councils are not sufficiently empowered or self-interested in the financial affairs of the university to act as effective principals none of their actions have the potential to maximise their own financial positionFootnote3 at the expense of vice-chancellors as agents and hence they are unable to exercise effective control as governors with respect to levels of VC remuneration. That is their vital ingredient and they have training to get it. /Pages 2 0 R The UCC needs to make good on its promise to support member Universities in this transition through: * provision of best practice templates for the reporting of remuneration. 3132). In 1983, the Hawke governments education minister, John Dawkins, commenced reduction of direct [state] control of the internal business of higher education institutions (Wells & Martin, Citation2013, p. 203, emphasis original). Warm Regards, Jenn Stringer, Associate Vice Chancellor for IT and Chief Information Officer. Top 10 Vice-Chancellor Salary Packages AUD$, Please prove you are human by selecting the, Copyright 2015 - 2021 Australian Education Network - All rights reserved, Complete List of Vice-Chancellor Pay & Salary Packages At Australian Universities, List of Vice-Chancellor Pay & Salary Packages, Revenues and Surpluses At Australian Universities, Historical Development of Australian University Sector, University Bachelor Degree Completion Rates, QS Employability Rankings Australian Universities, ARWU World Rankings of Australian Universities, Top 10 Highest Paid Vice-Chancellors @ Australian Universities, ARWU World Rankings of Australian Universities Group of Eight (go8) World Rankings. Abstract . /Rotate 0 /ExtGState 44 0 R /Rotate 0 The decline of public sector funding has contributed to a process of privatisation of the income stream, and corporatisation of the governance mechanisms and Im a beneficiary of that process, as deputy dean.. Note 2: the majority of universities disclosed vice chancellor salary under the section Remuneration of Executive Officers/Key Management Personnel. 13(3), 130-141. This was facilitated, in part, through the appointment to councils of external members from the business world, with a concomitant reduction in staff and student members (Baird, Citation2006). In 2018-19 vice-chancellors received nearly 350,000 (A$635,000) on average. How Australian vice-chancellors' pay came to average $1 million and why "But university vice-chancellors don't do that. Financial exigencies considerably strengthened VCs and university governing bodies powers (Marginson & Considine, Citation2000). Register a free Taylor & Francis Online account today to boost your research and gain these benefits: Paying the piper: the governance of vice-chancellors remuneration in Australian and UK universities, a New Social Research, University of Tampere, Tampere, Finland, b School of Education, Deakin University, Geelong, Australia, Robbins remembered and dismembered, contextualising the anniversary, Department of Education Science and Training. By the 1990s, self-serving managerial behaviour was widespread, leading shareholders and governments to demand a shift towards greater formal, endogenous and exogenous surveillance and control measures such as non-executive directors, remuneration and audit committees, and the strengthening of shareholders legal rights (Cadbury, Citation1992). 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. You dont create Rome in a day. The committees report (CVCP, Citation1985) opined the need for a greater role for the government in directing universities to a more efficient, business-like approach. It is a hard job being a vice-chancellor. Vice-Chancellor agrees to unlock salary increases to ease COVID-19 financial impact on staff. But he said downward pressure would continue to be applied on vice-chancellors pay packets in the next few years while revenues remain lower and the sector battles to rebuild its international student markets. Follow the topics, people and companies that matter to you. 12 0 obj The shift in the UK and Australian universities from collegial to more corporate forms of operating has engendered a corresponding shift in governance from stewardship to the agency. This is unsurprising in Australia their average pay at the 37 public universities topped A$1 million in 2019. Resentment against university management has always been part of university culture, but this exacerbates it.. Licensed to the public under Creative Commons Creative Commons Attribution 4.0 International License license. >> When universities go to Canberra begging penury from an unsympathetic government, the finger gets pointed at what the bosses get paid. He noted that his predecessor had anticipated a very significant downturn in revenue, particularly from international students. << Job Reference: 1036266. Although we draw on empirical examples from both Australia and the UK, this is not a comparative article. "Australia is not the colonies any more. 3 0 obj 2022-08-01 He is also the Director of the Grattan Institute, Melbourne Business School and the Melbourne Theatre Company . We are doing that. /ProcSet [/PDF /Text] 3 Approximately half of the chancellors of Australian university councils are remunerated (as are some council members) but in general the levels of remuneration are modest and do not compare with the fees paid to company directors. Salaries have skyrocketed since. << New Federation University vice-chancellor Duncan Bentley was the states lowest-paid vice-chancellor, with a remuneration package of $550,000 last year. Vice-Chancellor Salary Packages (Archive 2017) University VC Name Salary Package ($) University of Sydney: Michael Spence: 1,445,000: Australian Catholic University: Greg Craven: As such, they dont have controlling owners/shareholders. The Stan Perron Dean of Applied Ethics - au.linkedin.com /ExtGState 28 0 R I ask Schmidt why relations are so strained. "What strategic options have they been generating during COVID, apart from just laying people off? 2 0 obj 13 0 obj The only thing on its research agenda is commercialisation, which, if we are honest, is never going to fill the coffers that have been emptied by absent international students. /Font 35 0 R /MediaBox [0 0 595 842] This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users. It also makes it less likely theyll leave, saving them the bother of appointing a new one. Staff - Research roles. These universities are broadly representative of university types in the Australian sector.Footnote2 Data for this table were sourced variously from Academic Salaries Tribunal reports and from publicly available university annual reports. They found: that VCs are rewarded according to internal pay structures as predicted by tournament theory. /Parent 2 0 R << That was pretty bad. They are attracted by the fantastic health system and fantastic services. Source: public Australian universities 2017 annual reports, using mid-points of published remuneration ranges unless precise figures were disclosed. Using voluntarily disclosed 19931994 data, Baimbridge and Simpson (Citation1996) report average UK VC remuneration of 93,498. /doi (10.32725/det.2021.023) Similar, but less extreme, trends are evident in the UK. Campus Morning Mail is an independent newsletter written and published by Stephen Matchett, formerly a long-serving journalist at The Australian newspaper. The present regulator, the Office for Students notes that it does not have legal powers to regulate the pay of senior staff in the higher education sector directly but does acknowledge that it has a duty to take into account the value for money higher education providers offer for the public money they receive (OfS, Citation2020). << He argued that government austerity measures in the UK had inflamed ordinary peoples resentment of high-paid officials. 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. In 19931994, VCs salaries averaged 93,498 [AUD$168,300], whilst the most junior lecturer grades had a mean salary of 20,412 [AUD $37,038], a ratio of 4.6, and senior lecturers 29,543 [AUD $53,607], a ratio 3.2. /MediaBox [0 0 595 842] If universities are indeed publicly owned and operate in the public interest, then greater transparency and accountability about vice-chancellors salaries are necessary. Help using this website - Accessibility statement, negotiated a salary that was $300,000 less than his predecessor, University Foreign Interference Taskforce. List of Australian university leaders - Wikipedia Analysis by The Australian Financial Review reveals that in 2021 at least 11 vice-chancellors received $1 million-plus salaries while making huge cuts internally, slashing staff numbers and putting infrastructure projects on ice as closed borders threatened the international student market. Those at prestigious Group of Eight universities were paid more than A$1.2 million on average. When he became vice-chancellor, he negotiated a salary that was $300,000 less than his predecessor making him the second-lowest-paid vice-chancellor in the country, despite the eminence of his institution. By 2018 they were earning 16 times as much. Professor Smith added most Australian universities lacked transparency, stating salaries in a range rather than exact amounts, which included a sleight of hand given they sometimes included bonuses and rent arrangements. The government pushes freedom of speech and foreign interference agendas, but shows little interest in the role of universities in producing the next generation of doctors, nurses, lawyers, diplomats, architects, engineers, teachers and social workers. The NTEU said that the average starting pay for a senior lecturer had risen 2.4 per cent to about A$117,300. If you like what you're reading online, why not take advantage of our subscription and get unlimited access to all of Times Higher Education's content? First, agency favours measurable, extrinsic motivations such as remuneration, whereas stewardship focuses on less measurable intrinsic factors such as personal growth and achievement (Davis et al., Citation1997, pp. Then COVID-19 hit. . Vice-Chancellor's introduction It has been said that 2020 was an unprecedented year for the whole world - and ANU was no exception. Rent (Smith, Citation1776/Citation1937), in economic terms, is the extraction of financial value through ownership or control of an asset without simultaneously bringing any new wealth into existence; rent is therefore differentiated from profit. * biennially review the effectiveness and currency of this code.. From 1976 to 1986, the Australian government set recommended maximum salaries for vice-chancellors. Of the 20 highest-paid vice-chancellors in 2017-18, London Business School had the highest ratio at 12.8 times average staff pay, with the 20th-placed University of Reading having a ratio of 9.2. Mr Norton said that it was ironic that vice-chancellor salaries attracted more criticism in the UK than Australia. When a vice-chancellor is paid twice the salary of the prime minister, it does seem something is a bit wrong, said Mr Norton. But this is a huge shock and [politically] there is a sense that universities just needed reforming anyway and this would fix them up.. It has been pummeled by hail, flood, fire and a massive cyberattack. The first relates to principals. After we finish lunch, Schmidt heads back to the office, across the beautiful new heart of ANU, head down, hands in pockets, looking slightly forlorn. /ExtGState 18 0 R /Contents 23 0 R Toward a stewardship theory of management, Compensation benchmarking, leapfrogs, and the surge in executive pay, CEO governance and shareholder returns: Agency theory or stewardship theory, Governing the twenty-first century university: A view from the bridge, Silent escalation: Salaries of senior university administrators in Ontario, 19962006, Changing patterns of governance for Australian universities, Reporting on vice-chancellor salaries in Australias and the United Kingdoms media in the wake of strikes, cuts and falling performance, Theory of the firm: Managerial behavior, agency costs and ownership structure, Chief executive pay in UK higher education: The role of university performance, An assessment of agency theory as a framework for the governmentuniversity relationship, Australian universities top world rankingsfor VC pay, The political economy of the rent-seeking society, Rank order tournaments as optimum labor contracts, Changing cultures in UK higher education: The state as corporate market bureaucracy and the emergent academic enterprises, Executive compensation as a corporate governance problem, Agency theory: Review of theory and evidence on problems and perspectives, The economic theory of agency: The principal's problem, Pay developments in Britain and Germany: Collective bargaining, benchmarking, and mimetic wages, University governance in flux. Vice-Chancellor's remuneration | Deakin At the UKs University of Bath, for instance, the council has been criticised for being too cosy and too socially aligned with the VC: There is a tendency to want to have a highly paid vice-chancellor because it shows what an important job Im doing as a lay governor, says Shattock, who also believes that the inexorable rise of university leaders salaries is, to some extent, caused by laziness. Office for Students releases latest analysis on senior staff pay "A CEO offers strategic direction. "Chief executives are paid for their business acumen. Despite government promises of greater accountability (Dodd, Citation2017), little appears to change. Policies and Procedures Library - The University of Queensland, Australia Sky-high v-c pay 'a failure of governance' - Times Higher Education Im just not interested.. So, if universities hire highly paid marketing or communications staff, it drives up pay levels for those above (but not below) them. /Type /Page Alex Usher, Canadian-based higher education strategist. 1 By vice-chancellor we mean the chief executive officer of universities. Similar trends are evident elsewhere, including Denmark (Boden & Wright, Citation2010) and Canada (Essaji & Horton, Citation2009). This article critically considers the determination of vice-chancellors remuneration as a governance issue. It executes this duty in part via market means, recently requiring and publishing specified information on staff pay, and the disclosure of VC remuneration information in the universities audited financial statements. endstream He donated $100,000 of his share in the 10 million Swedish krona (roughly $1.5 million in todays money) Nobel Prize money to a primary school science program the federal government had just defunded. But Schmidts fateful 2018 decision to cap both domestic and international student numbers at 20,000, arguing that getting bigger would not make the university better, has contributed to todays crisis, in effect crippling the pipeline of students going into last year and set to play out over the next five or six years. The couple tied the knot in 1992. Sydney University has recorded an unprecedented $1 billion surplus. There were 22 changes to vice-chancellor appointments in these three years. /Font 38 0 R The UK has a similar history to Australias on the setting of academic staff salaries. Professionals were seen as unaccountable and self-serving, making the self-governing universities with significant public funding an obvious target (McNay, Citation1999). Follow the topics, people and companies that matter to you. /Filter /FlateDecode Licensed to the public under Creative Commons Creative Commons Attribution 4.0 International License license. 17 0 obj /R10 59 0 R Apart from a small number of newer for-profit institutions (beyond the scope of this article), universities remain private, charitable and self-governing. He also took a 20 per cent pay cut for six months last year. University vice-chancellor salaries are 'ridiculous' Bamboo chopsticks are waved in the air as a point is made before they deftly dive in for an edamame bean. But he said that it would be simplistic to attribute the trend to pure greed. On the basis of the data presented in this article, we argue that it may also explain, at least in part, the escalation of VC remuneration in Australia and the UK. I searched for actual salary disclosures and then disclosures via bands. Turning to the highest paid vice-chancellor in Australia, The University of Melbournes Professor Duncan Maskells salary is $1,469,999, a pay cut of $44,000 from 2020. 15 0 R 16 0 R] THE, The Chronicle of Higher Education. (link is external) conference on June 18. However, their salaries pale into insignificance beside the $4.29 million paid to the University of Louisvilles outgoing president, James Ramsay. There is evidence from Australia and from the UK, that the coronavirus pandemic has drawn attention to and exerted some mitigating effects on vice-chancellors remuneration in 2020, with some having taken remuneration cuts in the face of financial exigencies facing their universities (Ross, Citation2020a). * provision of sector wide vice chancellor and senior remuneration data by the UCC including a sector annual report distributed to all members. Governance regimes play a central role in the distribution of organisational power and determine the approaches used for fixing remuneration.

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