We found out if your uni's Vice Chancellor got a pay rise during the Help using this website - Accessibility statement, negotiated a salary that was $300,000 less than his predecessor, University Foreign Interference Taskforce. 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. >> Just a few months earlier he had met her mother, Daphne who was at Harvard visiting her daughter when she came across Schmidt making strudel on a bedsheet in the residential halls kitchen. Experts expect 2022 to be a crunch year for Australian international education because of a dearth of fresh enrolments in 2020 and 2021. Professor Smith said Australian vice-chancellors should be benchmarked against leaders at leading British and US universities, who are paid less. << This caused information asymmetries and shifted the balance of power in managers favour (Balago, Citation2014); managers could no longer be implicitly trusted. NSW universities: op vice chancellors rake in million-dollar pay as All my excess money I donate.. Australian university Vice Chancellors earning seven-figure salaries /Font 52 0 R Im making strudel and I explained the whole process. 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. Thats true at Harvard and Oxford and more so at ANU than any other Australian university.. 130 Register to receive personalised research and resources by email. << Although we draw on empirical examples from both Australia and the UK, this is not a comparative article. * report annually (Q2) each year on adoption of the UCC code. Gordon, who is now the chief economist at the Department of Foreign Affairs and Trade, and Schmidt finished their PhDs within a few weeks of each other in 1993. /Parent 2 0 R Vice-Chancellor agrees to unlock salary increases to ease COVID-19 financial impact on staff. 11 0 obj In agency terms, these findings beg the question as to whether information and power asymmetries within universities are influencing the setting of remuneration as, in agency terms, VCs are achieving unjustifiably high remuneration. It has been pummeled by hail, flood, fire and a massive cyberattack. It hasnt always been like this. So there is a lot of mythology around the notion that academics in Australia are underpaid. The only disclosure of vice-chancellors remuneration I found that was not in the financial statements and bands was that of Western Sydney University as follows: Professor Barney Glover AO, Position: Vice-Chancellor and President Total Remuneration Package: $988,380 Period in Position: Full Year, Results: Met all objectives. This suggests governments could, for instance, require maximum xed ratios between vice-chancellors remuneration and average academic salaries. Details - Senior Advisor, Government Relations - Federation University . 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). "Chief executives are paid for their business acumen. People forget that the private school phenomenon is very much an Australian thing. endobj 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. TEQSA Publisher ID: PRV12061 (Australian University) Locked Bag 1797 Penrith NSW 2751 Tel: +61 2 9852 5222. /MediaBox [0 0 595 842] The UK has a similar history to Australias on the setting of academic staff salaries. For example, in 2018, the Australian Catholic Universitys VC was paid AUD $1,325,000 [726,633,000], exceeding the salaries at some more prestigious universities. Follow the topics, people and companies that matter to you. quality of education In response, the federal government stipulated that any university that exceeded the recommended VC remuneration levels would have that amount deducted from their recurrent government grant. /Type /Page /ProcSet [/PDF /Text] >> There was cost-cutting across the board, voluntary redundancies; prudent fiscal measures were put in place, given the level of uncertainty to the higher education sector and given the minimum financial support that came to the sector, particularly from the federal government, he said. The union said that a typical university chief would earn the equivalent of a professional employees annual pay rise by lunchtime in a single day, and a senior lecturers salary increase by afternoon tea. That honour went to Jim Albracht, still one of his closest friends and now director of product management for news ecosystems at Google. However, our search for publicly available documents sourced through university websites reveals that, in 2018, more than half of all Australian VCs were members of or had formal rights of audience and debate at the renumeration committee meetings that determined their own remuneration. 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. Problematically, universities are quasi-market not-for-profit organisations. Then COVID-19 hit. Were working to restore it. 18212506 From the nineteenth century, the state increasingly funded universities, but the government took care not to exercise control as a consequence (Ainley, Citation2014). 13 When universities go to Canberra begging penury from an unsympathetic government, the finger gets pointed at what the bosses get paid. To view the position description, please click Senior Advisor, Government Relations Final PD_2023.pdf. It was outstanding., Schmidt with his wife Jenny Gordon, who is the chief economist at the Department of Foreign Affairs and Trade. DETUROPE - The Central European Journal of Tourism and Regional Development But this is a huge shock and [politically] there is a sense that universities just needed reforming anyway and this would fix them up.. In 1994, it required universities, as with private firms, to declare senior staff remuneration in their annual financial accounts (Baimbridge & Simpson, Citation1996) (a requirement mirrored in Australia). There is a long-running cyclical public debate in the UK and Australia about the level of vice-chancellors remuneration in publicly funded universities. Bachan and Reilly found little evidence that university performance accounted for UK VCs remuneration levels, concluding that: It may be the casethat VC pay is more merited than some of the harsher public criticism suggests. >> Login, Michael Spence maintains status as Australias highest-paiduniversity leaderdespite cut in salary, Average pay packages in Victoria push towards the A$1 million mark amid questions over whether spending more gets you better leadership, Average remuneration for university heads in Queensland in 2017 stands at twice the equivalent UK figure, Our annual pay review details v-cs remuneration, explores the make-up and workings of the governing bodies that set it, and compares the rewards on offer with those of other sectors, Mechanisms to determine university leaders salaries are opaque and unreliable. These procedures outline the process and steps for researchers who wish to apply for a human ethics exemption, as permitted under Section 5.1.22 of The National Statement on Ethical Conduct in Human Research (2007). Three in four Australian v-cs take pay cuts - Times Higher Education (THE) The downward turn in earnings comes after years of rising vice-chancellors salaries, peaking at $1.6 million in 2019 for Michael Spence, then the head of Sydney University. Through Freedom of Information Act requests, the UK University and College Union found that, in 2018, 95% of VCs were either members of the remuneration committee that set their own salary or were entitled to attend meetings (Weale, Citation2018). Copyright 20102023, The Conversation Media Group Ltd. An exception to the rule, Australian National Universitys Brian Schmidt is a Nobel laureate and vice-chancellor of one of the countrys most prestigious universities, but was the second-lowest-paid on about $650,000 in 2019. /Length 62 0 R Evaluation Activities - Generally encompass . Mr Norton said that it was ironic that vice-chancellor salaries attracted more criticism in the UK than Australia. /ExtGState 34 0 R At least 28 of Australia's 41 vice-chancellors have accepted salary reductions, a Times Higher Education analysis has found. 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. 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. (Grove, Citation2018). Similar, but less extreme, trends are evident in the UK. 1. It is that unpleasant of a job sometimes, and I have better things to do with my life. But just keeping the water and the power on requires a six-week horizon.. Cited by lists all citing articles based on Crossref citations.Articles with the Crossref icon will open in a new tab. /R7 57 0 R Davis et al. 20 0 obj He said Sydney was arguably the highest paying university in Australia in what is on average the highest paying university system in the world. * biennially review the effectiveness and currency of this code.. They just keep going for more contracts and more casualisation, she said. The international student sector, which props up Australian universities and their research efforts, started collapsing after borders were hastily closed last February. They generate strategic direction and that equals value creation," said Professor Smith who is the head of the Department of Applied Finance at Macquarie University. Page updated 15 Price 2020 . In salary tournaments, pay levels reflect the hierarchy of organisational roles. These posts are also variously named president, principal or rector. 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. The biggest increases went to Central Queensland Universitys Scott Bowman, who had backdated his annual bonuses to the end of a multi-year contract, and Queensland University of Technologys retiring boss Peter Coaldrake, whose package is thought to have included a golden handshake. This would require considerable political will, but there is little evidence of an appetite for that. /MediaBox [0 0 595 842] 3435). 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. So when, 10 minutes into lunch with the universitys vice-chancellor, Professor Brian Schmidt, a protest comprising about 20 students, a megaphone and a couple of hastily written banners hoves into view, I am relieved they want Palestine freed, not the vice-chancellor sacked. /ExtGState 54 0 R 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). And I save a lot, even on my current salary.. Schmidt excelled academically, but he did not become dux. 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). But the comparison is wrong because vice-chancellors run public institutions, students are different to employees and there is little evidence any VCs have created new strategic directions in the face of the hit to their income during COVID-19. 6532 C`fTmZK M(VePt5PT@9\AUVmk}K PeC?PR0m+Lw8^+NQL%KwU)7XRfBFe I%>~n+&:Sf2osq4 )u`iTnc^j1ZUhO5myv$ZkK3gHz{anw/i+KsY94[f M|6wjl-i@_^UV#}Uwh s;mIp'N}|fi;eT Canadian-based higher education strategist Alex Usher said vice-chancellors in his country were not paid anywhere near their Australian peers. 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. The escalation of VC remuneration in this context suggests rent-taking. https://creativecommons.org/licenses/by/4.0/ These reforms have since deepened and accelerated, especially in England where deregulation and student fees have heralded significant competition and marketisation. 6 0 obj As Table 2 starkly reveals, this ratio has increased very considerably since then. Of course, these are demanding roles, but econometric research demonstrates little, if any, relationship between vice-chancellors pay and their actual performance. He said when Sydney University vice-chancellor Michael Spence leaves Australia next month for UCL university in London, he will be taking a salary cut of more than 50 per cent. University councils, which appoint remuneration committees, may therefore be insufficiently powerful or insufficiently self-interested as principals to control the process adequately. 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. But Melbourne University emeritus professor Frank Larkins said vice-chancellors high salaries reflected the increasing demand that Australian universities operate like businesses, including chasing ever more revenue from international students in order to fund their operations and cross-subsidise research. They found: that VCs are rewarded according to internal pay structures as predicted by tournament theory. 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. 9 0 obj Bachan and Reilly (Citation2015) look to tournament theory (Lazear & Rosen, Citation1981), which suggests that pay levels can be explained by a persons rank order in an organisation. Journal 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. His family moved around as his father, Dana, pursued an education in fisheries and aquatic biology. The Australian Universities Vice-Chancellor and Senior Staff Remuneration Code 2021 states that: It is recognised that transparency is an important part of good practice remuneration ensuring that decision bodies, processes and outcomes are openly explained and presented to all stakeholders.. Australian vice-chancellors also outearn their public university counterparts in the US, where full-year pay packages averaged about $560,000 (436,000) in 2016-17, according to the latest survey conducted byThe Chronicle of Higher Education. Instead, we show that neither nation is an outlier. Karleen Minney. Hes too busy talking to eat quickly. /Filter /FlateDecode endobj /Contents 47 0 R Another $100 million came from the sale of land to the NSW government, while philanthropists responded to the pandemic with open chequebooks. Vice-Chancellor's remuneration | Deakin A private sector CEO would be looking for new revenue right now.". 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. Governance regimes play a central role in the distribution of organisational power and determine the approaches used for fixing remuneration. Meanwhile, Monash University boss Margaret Gardners salary dipped below A$1 million because of a change in her pay cycle. Benchmarking is the setting of remuneration by reference to analogous organisations/job roles an attempt to set a self-fulfilling market for pay (DiPrete et al., Citation2010). In examining the public university annual reports for 2021, there are no disclosures per the voluntary code. Australian Public Universities Vice-Chancellor Salaries and Workforce Casualisation: Ethical Tension? << He also took a 20 per cent pay cut for six months last year. More prestigious universities generally paid their VCs more, but this was not universal. In only 11 Australian universities were VCs formally excluded from such deliberations. Australia's population as at 20 September 2020 was 25,693,059 people (Australian Bureau of Statistics, 2021), with 39 public and four private universities in the nation. He started the job on January 1, 1998, and quickly followed up with his Nobel Prize-winning research. You are done. endobj No potential conflict of interest was reported by the author(s). That power is expressed through ANUs seven deans. Your email Alex Ellinghausen. Licensed to the public under Creative Commons Creative Commons Attribution 4.0 International License license. The Vice-Chancellor's salary for 2021 was $670,607 with overall reported remuneration currently in the range of $850,000 to $859,999 (2020: $940,000 to $949,999). /ExtGState 18 0 R Its a process that can take six hours or two, depending on the abundance of the harvest. Thats in the bottom 2 per cent of occupations, just below a crosswalk attendant but above leaflet deliverers, Dr Bentley said. Weve been struck by the biggest shock in the history of higher education, Schmidt says. 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. * provision of sector wide vice chancellor and senior remuneration data by the UCC including a sector annual report distributed to all members. The first relates to principals. Vice-chancellors' pay has soared over recent decades (although most accepted pay cuts this year [] (Bachan & Reilly, Citation2015, p. 70). Full article: Paying the piper: the governance of vice-chancellors It also makes it less likely theyll leave, saving them the bother of appointing a new one. In both Australia and the UK, VCs remuneration is determined by a remuneration committee of the council for each university. /ExtGState 44 0 R Our position descriptions also list a contact person for job specific enquiries. Professor Shields said that many Australian universities were now only nominally government institutions, with the bulk of their money coming from student fees and other private sources. Australian Public Universities Vice-Chancellor Salaries and Workforce Casualisation: Ethical Tension? 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. /Rotate 0 This is unsurprising in Australia their average pay at the 37 public universities topped A$1 million in 2019. Agency governance was increasingly adopted in the corporate world from the 1970s. Benchmarking is a technical exercise whereby universities pick comparator organisations and pitch senior staff salaries at similar levels. 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 couple tied the knot in 1992. Fifth, stewardship tends to be collectivist whilst agency is individualistic (Davis et al., Citation1997, pp.

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