vice chancellor salary australia 2020

In the UK, VCs remuneration has had to be disclosed in universities annual reports and accounts since 1994, and is collated annually by The Times Higher. Licensed to the public under Creative Commons Creative Commons Attribution 4.0 International License license. This would require considerable political will, but there is little evidence of an appetite for that. /Contents 47 0 R In agency governance, executive remuneration will always exceed the true economic wage because it is designed to be at the optimal point to maximise return to the shareholder in a trade-off between surveillance/control costs and rewarding managers, such that they promote shareholder interests above their own (Jensen & Meckling, Citation1976). 2. >> This weakens the argument for linking vice-chancellor pay to university academic or professional staff.. The escalation of VC remuneration in this context suggests rent-taking. It had around 175,000 people. /Font 42 0 R >> Cited by lists all citing articles based on Crossref citations.Articles with the Crossref icon will open in a new tab. "Dr Spence is going to get half of what he does now, in a far more prestigious university," says Tom Smith. 2020 will be a different story. 14 0 obj We are doing that. However, independent academic analyses have consistently found no convincing evidence of a relationship between VC remuneration and performance and that the very significant increases since the 1990s are more likely to be the result of benchmarking in a case of [k]eeping up with VC Jones (Gschwandtner & McManus, Citation2018, p. 1). To put it plainly, ANU has had a rough few years. /Font 52 0 R No potential conflict of interest was reported by the author(s). to get daily updates on what's happening in the world of Australian Higher Education. Since being named co-winner of the 2011 Nobel Prize for Physics (with Saul Perlmutter and Adam Riess) for the discovery that the expansion rate of the universe is faster than it was in the past, Schmidt has made sure that money or what he does with it is very much part of his schtick. To view the position description, please click Senior Advisor, Government Relations Final PD_2023.pdf. /Type /Page It is significant, but not surprising, that the ratio was far lower when all remuneration was centrally set or regulated. 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. Stewardship was the dominant governance form until the twentieth century (Donaldson & Davis, Citation1991, p. 22). 2022: $1.195m. There were 22 changes to vice-chancellor appointments in these three years. Professor . Our salary-sacrificing initiatives allow you to pay some or all of the offering before tax. which stood at A$900,000 last year, and was increasing less quickly, is set to pass A$1 million in 2020. John Shields, deputy dean of the University of Sydney Business School, said that a ratcheting up of administrative salary levels had spawned an executive elite in Australias big universities. Australian university vice-chancellors reap million-dollar salaries as The pay packages of Deakin Universitys Jane den Hollander, RMIT Universitys Martin Bean, the University of South Australias David Lloyd and the University of Technology Sydneys Attila Brungs all moved into seven figures last year. University Councils then aligned VC pay with private sector companies with similar numbers of staff. That honour went to Jim Albracht, still one of his closest friends and now director of product management for news ecosystems at Google. 4 0 obj /Rotate 0 The appointment of Schmidt, a Nobel prize-winning scientist, as vice-chancellor in 2016 was greeted like the breaking of a new dawn by many. Universities have prioritised corporate efficiency and profitability, shifting the balance of power further towards senior managers. In August 2021, the University Chancellors Council (UCC) released a voluntary code to benchmark the salaries of university vice-chancellors and promised to benchmark senior executive salaries in public universities. Canadian-based higher education strategist Alex Usher said vice-chancellors in his country were not paid anywhere near their Australian peers. /Rotate 0 How Australian vice-chancellors ' pay came to average $1 million and >> The University Chancellors Council must act now to deliver on the purpose of the code. A similar report will be prepared for the Vice-Chancellor and the Vice-Chancellor's Risk and Compliance Committee within thirty-six months of the Vice-Chancellor's approval of the review report. 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). We now examine the dynamic governance regimes of Australia and the UK with regard to VC remuneration. Im making strudel and I explained the whole process. This article critically considers the determination of vice-chancellors remuneration as a governance issue. As Table 2 starkly reveals, this ratio has increased very considerably since then. /Type /Page Associate Professor in Education Leadership, Deakin University, Chair Professor, New Social Research, Tampere University. 3 /ExtGState 31 0 R 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. While any remuneration for board memberships is not disclosed, non-executive directors of large publicly listed companies such as CSL can receive in the vicinity of $1,000,000. "Chief executives are paid for their business acumen. I know there are reasonable explanations for the size of some of these surpluses and people are saying it is a one-off and wont happen again. which was ranked second in the QS World University rankings this week. NSW universities: op vice chancellors rake in million-dollar pay as Annual condemnations of remuneration levels (Langford, Citation2018) are countered with mantras that VCs lead large and complex businesses within which they work hard for objectively set pay (Blanchflower, Citation2017). Australian universities, academic workforce casualization, vice-chancellor salaries, quality of education UK universities began as autonomous, self-governing communities of scholars endowed financially by the state, church or wealthy individuals (Moodie & Eustace, Citation1974). Office for Students releases latest analysis on senior staff pay They found: that VCs are rewarded according to internal pay structures as predicted by tournament theory. 7 0 obj Neither camp could have predicted the weather, the pandemic or the politics that have battered Australias national university. << Rather than be the head of the organisation who seems completely disconnected, it is really important, in my opinion, for the vice-chancellor of a university like ANU, to be seen as part of the professoriate. Finally, stewardship is marked by lower power-distance relationships than agency, with flatter, less hierarchical organisations (Davis et al., Citation1997, pp. His predecessor, Michael Spence, earned more than $1.6 million in 2019, which included rent-free accommodation in a Victorian mansion in Sydneys Woollahra that has since been sold for $9 million. (Grove, Citation2018). "A CEO offers strategic direction. When universities go to Canberra begging penury from an unsympathetic government, the finger gets pointed at what the bosses get paid. Of the two ways that agency theory suggests can mitigate this problem, we have demonstrated that in both the UK and Australia, remuneration has not been effective in aligning the interests of principals (in terms of well-functioning universities) and agents. Chasing jobs around the globe, Schmidt applied for and was rejected for a post-doctoral fellowship at ANUs Mount Stromlo three times before finally being made an offer. Im spinning out companies, but it takes time. 3234). Governance regimes determine remuneration forms and their allocation between potentially competing groups, reflecting organisational power dynamics (Neokleous, Citation2015). >> 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. /Parent 2 0 R Calculating Vice Chancellors salaries and senior executive remuneration in Australian public sector universities is challenging. 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. /Contents 56 0 R /Type /Pages Teaching went online. /ExtGState 48 0 R He is poised to potentially receive the largest remuneration package in the country from next month when former ABC managing director Mark Scott begins at the University of Sydney on $500,000 less than his predecessor, Michael Spence, who was paid $1.53 million last year. The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment. /ProcSet [/PDF /Text] Sydney University has recorded an unprecedented $1 billion surplus. If not, we need to understand how salaries have been inflated and find ways to keep them in check. Professor Schmidt earned $560,000 in 2020 after giving himself a $90,000 pay cut on 2019, according to information obtained by The Australian Financial Review. Market-based salary setting mechanisms, such as benchmarking, appear to drive these increases. 2020, Universities Australia 2020 Higher Education Facts and Figures 2020, . But $1 billion is an astronomical amount of money; it is more than the entire revenue of most universities, said Andrew Norton from the Centre for Social Research and Methods at the Australian National University. 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. 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 is a hard job being a vice-chancellor. DETUROPE - The Central European Journal of Regional Development and Tourism 2021, 13(3):130-141, doi: 10.32725/det.2021.023 Im more careful with my words than I used to be. >> Help using this website - Accessibility statement, strategic options he's worth the $5 million they pay him. But just keeping the water and the power on requires a six-week horizon.. 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. Its clear there is a governance dynamic that is driving the pay escalation. The package of the average female university leader, which stood at A$900,000 last year, and was increasing less quickly, is set to pass A$1 million in 2020. << /ProcSet [/PDF /Text] If universities are indeed publicly owned and operate in the public interest, then greater transparency and accountability about vice-chancellors salaries are necessary. /ExtGState 18 0 R Our analysis has found that 60 per cent of uni . 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. In fact, Sydney University increased the number of students who were willing to learn online from China. Core to that process has been the transition of vice-chancellors from being first among equals in academic communities to entrepreneurial chief executive officers of quasi-corporations. However, 12 universities had a change in leadership during the year and six had not publicly reported their financial data at the time of writing. Professor Schmidt, who negotiated a salary package of just two-thirds of his predecessor, Ian Young, said the university council had been concerned about what such a low salary would flag about the institution.

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