vice chancellor salary australia 2020

/Author (Roberto Bergami) It is a hard job being a vice-chancellor. /Font 38 0 R Fifth, stewardship tends to be collectivist whilst agency is individualistic (Davis et al., Citation1997, pp. From the 1960s this role was undertaken by the Universities Authorities Panel and, from 1987, the Universities and Colleges Employers Association both employers associations (Rani, Citation2009). 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. /ProcSet [/PDF /Text] Baimbridge and Simpson (Citation1996) correctly hypothesised that the ending of local authority control over the old polytechnics and colleges as they entered the university sector (becoming the post-1992s) would lead to a rapid escalation in VC remuneration. The Dawkins reforms signalled a Thatcher-like commodification of the tertiary education system (Pusey, Citation1991, p. 148). He argued that government austerity measures in the UK had inflamed ordinary peoples resentment of high-paid officials. 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. 16 0 obj ANUs $260 million Kambri Precinct has transformed the campus. 6532 I think a lot about how to get my meaning out without becoming a headline. /Parent 2 0 R /Resources << "But university vice-chancellors don't do that. You might also be interested in the following pages: List of Vice-Chancellor Pay & Salary Packages, Revenues and Surpluses At Australian Universities, Historical Development of Australian University Sector, ERA 2018 Outcomes Research Rankings List, University Bachelor Degree Completion Rates, QS Employability Rankings Australian Universities, ARWU World Rankings of Australian Universities. Well, guess what? x\YoG)JE7eRGhkfVem,ezi360l_VEu`6fVq|qdV-/KO/?9m5?=Py1C_?>+Lk;)tuh=*ANKR43oU2=mm~9 Uu:4g#A(sp 6;NKFwVafKqr8BM|~+aZ (A1XK;R`v0)|L&bf~f4cdnJpN" -^q_#(=Ci[]nXy2cvAaL)j2 M8@ CV,Vju! Table 3 lists the universities in England in 20172018 with the highest remuneration ratios. The Tribunal (Citation1974) found they were well paid in relation to equivalent roles elsewhere in society, a view unpopular with the then Australian Vice-Chancellors Committee and some individual VCs who protested that the tribunal risked undermining universities independence and should be abolished (Academic Salaries Tribunal, Citation1974). This signals that for some universities broader capabilities and expertise is being sought in the vice-chancellor role. 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). To request a reprint or commercial or derivative permissions for this article, please click on the relevant link below. 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. The resulting rethinking of governance led to the popularisation of contract and market-based agency theories (Jensen & Meckling, Citation1976). (link is external) conference on June 18. During our lunch, Schmidt tells me more than half a dozen times that being a vice-chancellor is hard, really hard. As Table 2 starkly reveals, this ratio has increased very considerably since then. Universities were penalised financially if these guidelines were breached. 3 In the context of corporatised public universities, we consider how reforms in university governance may have contributed to the shifting nature and levels of vice-chancellors remuneration in Australia and the UK. In their comprehensive analysis over 10 years involving performance indicators relating to student numbers, student evaluations, research and financial performance, Gschwandtner and McManus (Citation2018) found neither VCs nor universities performance can explain the increases in VCs salaries, and that higher pay does not lead to higher performance. It really is. 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. Schmidts motivation was that by keeping ANU small and elite, a high-quality education and experience could be guaranteed for all students, international and domestic. 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. This has weakened collegiality and strengthened hierarchical managerial control by VCs and, to a lesser extent, university councils (governing bodies) (Trakman, Citation2008). /Type /Page 12 0 obj As does the Australian National University. He says winning the Nobel Prize has not changed him, although it is a wonderful door opener. /Font 22 0 R As a result of this flawed governance framework, universities usually allow vice-chancellors to be members of, or at least attend, the remuneration committees that set their pay. Data on academic staff salaries were sourced from Academic Salaries Tribunal reports, union archives, from Marginson (Citation1989) and from published university financial statements. Econometricians also looked at what might be driving these pay hikes. Schmidt is a self-described extrovert; a people person with bucket loads of charisma, IQ and EQ in equal amounts. endobj Did you know that with a free Taylor & Francis Online account you can gain access to the following benefits? /Rotate 0 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. Dr Spence told the inquiry that in 2020, Sydney University identified 247 academic staff and 45 administrators paid more $250,000 a year. 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. Salaries have skyrocketed since. endobj Source: public Australian universities 2017 annual reports, using mid-points of published remuneration ranges unless precise figures were disclosed. Performance objectives and targets are not further identified. 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. There were 22 changes to vice-chancellor appointments in these three years. He noted that his predecessor had anticipated a very significant downturn in revenue, particularly from international students. 15 0 obj 11 0 obj Australian Public Universities Vice-Chancellor Salaries and Workforce Casualisation: Ethical Tension. /Metadata 3 0 R Credit: Photo: Chris Hopkins. Reporting on vice-chancellor salaries in Australia . The second root cause of the over-compensation of VCs in both Australia and the UK, as we have highlighted, is that many officially sit on their own universities remuneration committees. 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). It was not debated before the state election and will be reintroduced by Greens MP Robert Simms, who has argued it is inappropriate for vice-chancellors to be paid like multinational corporate CEOs. It will be hard for an incoming Labor government not to put the screws on those universities that made money while laying off staff.. Job losses were huge: 465, although the real number is probably higher with contracts not renewed and casuals let go. Research demonstrates rapid and relatively recent increases in VCs remuneration with little connection between pay and performance (Bachan & Reilly, Citation2015; Johnes & Virmani, Citation2020). Its where they raised their two children and planted 1.1 hectares of pinot grapes. That power is expressed through ANUs seven deans. Resources foracademics and university staff, Everything you need for each stepof your study abroad journey. 2022-08-01 Bill would bind vice-chancellors' salaries to state premier's pay . "Chief executives are paid for their business acumen. /ExtGState 34 0 R Governments could, for instance, set fixed ratios between VCs remuneration and mean academic salaries. 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. Australian universities Salaries of the highest-paid university heads have shrunk since 2020, with the top job at Sydney University falling by about $500,000 when vice chancellor Mark Scott began in July 2021. Gwilym Croucher, a higher education policy expert from the University of Melbourne, said: There are obviously big questions to be raised about where the money is being spent, given that universities are public entities and that their job is to not make surpluses, but to be sustainable.. /Font 55 0 R Copyright (c) 2021 The author(s). >> 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. In real market businesses, CEOs hold a lot of power, including the power to enrich themselves at the cost of the dividends paid to shareholders. Canadian-based higher education strategist Alex Usher said vice-chancellors in his country were not paid anywhere near their Australian peers. That was pretty bad. Professor Maskells pay package rose by about $20,000 to a range between $1.5 million and $1.515 million, while Monash University vice-chancellor Margaret Gardners rose by about $90,000, from $1.28 million to between $1.3 and $1.4 million. /ProcSet [/PDF /ImageC /Text] Is vice chancellor pay justified by university performance? And I can honestly say I got a better education at Bartlett than any of those guys did. Problematically, universities are quasi-market not-for-profit organisations. This caused information asymmetries and shifted the balance of power in managers favour (Balago, Citation2014); managers could no longer be implicitly trusted. 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. They say they want universities to be less reliant on China and international students. Savage cuts to university budgets from 1981 led the non-statutory Committee of Vice-Chancellors and Principals (now Universities UK) to establish the Jarratt Committee with Sir Adrian Cadbury, a significant figure in corporate governance reform, as a member. /Parent 2 0 R She has more than 20 years experience as a writer, journalist and editor. At the time of writing when 2019 university financial accounts were beginning to be reported, it was noted that the 2019 average for Australian vice-chancellors remuneration may well have exceeded AUD $1m [609,000] (Ross, Citation2020b). Neither camp could have predicted the weather, the pandemic or the politics that have battered Australias national university. The problem is council members dont have the same financial self-interest as shareholders the vice-chancellors pay does not reduce their own profits. Journal /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 /Resources << 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. This would be in line with agency thinking concerning surveillance and control where remuneration has failed to achieve the desired goals. /ProcSet [/PDF /ImageC /Text] >> >> To the extent that salaries are not justifiable by reference to performance, they can be said to constitute rent. 2729). By 2020, Australia had 39 self-governing and self-owning publicly funded universities. Licensed to the public under Creative Commons Creative Commons Attribution 4.0 International License license. In the US, Cheng (Citation2014) found that between 2004 and 2009 institutional performance played a very limited role in determining public university VCs remuneration. Job Reference: 1036266. 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. Averages include figures for v-cs who served less than a full year, #1 Submitted by GavinMoodie on August 31, 2018 - 7:57am. /Rotate 0 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. The estimated total pay for a Assistant Vice Chancellor at Vanderbilt University is $148,517 per year. Many universities publicly justify the remuneration levels of their VCs on the basis that the salaries are independently determined by these committees following rigorous external benchmarking exercises. The Australian National Tertiary Education Union (NTEU) argued that Australian VCs were the highest paid in the world (Kniest, Citation2017). He is also the Director of the Grattan Institute, Melbourne Business School and the Melbourne Theatre Company, a board member of the Group of Eight and Universities Australia, a non-executive director of CSL Limited, and an ex-officio member of the universitys companies and controlled entities. << Stewardship was the dominant governance form until the twentieth century (Donaldson & Davis, Citation1991, p. 22). 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. 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. Copyright (c) 2021 The author(s). Professor Smith said vice-chancellor pay got out of line after universities were amalgamated in the early 1990s, creating institutions with up to 60,000 students. 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. 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). In 2020, the president of the worlds top university, Harvard, received only $60,000 more than Australias then best-paid vice-chancellor, the University of Sydneys Michael Spence. They might even prefer to pay their vice-chancellor over the odds because it makes their university look more prestigious. endobj 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). However, that literature does not address, because the methodology is unsuited, the governance factors that determine the allocation of remuneration. /Contents 20 0 R Although Australian universities have always set VCs remuneration autonomously, from 1976 until 1986 the Academic Salaries Tribunal made recommendations for VC remuneration levels using a two-tier system that differentiated the research elite from the rest. 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. /CreationDate (D:20220220173829+01'00') << TEQSA Publisher ID: PRV12061 (Australian University) Locked Bag 1797 Penrith NSW 2751 Tel: +61 2 9852 5222. Come harvesting day, Schmidt brings together what is probably the highest IQ grape-picking team in the universe, with more than 100 professors, students, colleagues and friends snipping the ripe grapes from their vines. Apart from a small number of newer for-profit institutions (beyond the scope of this article), universities remain private, charitable and self-governing. 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. 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. If anything it's more attractive to come to Australia," Professor Smith said. Do not underestimate the halo effect of having smart people around you, Schmidt says. Flavio Brancaleone. The UK has a similar history to Australias on the setting of academic staff salaries. 10.32725/det.2021.023 In this context, their remuneration packages were modest compared with many corporate chief executives, he said. 6 0 obj In examining the public university annual reports for 2021, there are no disclosures per the voluntary code. endobj 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). Possible Range. /ExtGState 28 0 R /ExtGState 40 0 R https://doi.org/10.32725/det.2021.023 >> This alignment makes it rational and efficient to trust the steward and extend them significant autonomy, with remuneration playing a less prominent role in motivating them. University Councils then aligned VC pay with private sector companies with similar numbers of staff. If winning the Nobel has not changed him as a person, has being a vice-chancellor? Isaac Newton had to leave town for several months or years. But at Bartlett High School, a local public school with 2000 students, he found a posse of like-minded souls and teachers. 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. /Subtype /XML RMIT University vice-chancellor Martin Bean, who is due to resign this month. Competitive Salary Package including 17% Superannuation; 5 year, full time contract; Lead and shape the future of ethical leadership! They want us to work with industry and companies. 15 0 R 16 0 R] It is that unpleasant of a job sometimes, and I have better things to do with my life. 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 . Your email 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. >> /Contents 56 0 R endobj Davis et al. Others suggested his lack of managerial experience would be a hard cross to bear. That did not happen. A voluntary code agreed by the Committee of University Chairs [of councils] in 2018 (CUC, Citation2018) had declared it inappropriate for VCs to be members of their remuneration committees but that they could attend providing they were not present when their own salary was discussed. The era of ever rising pay packets for Australian university leaders has come to a halt, another casualty of COVID-19 and an estimated $1.8 billion downturn in higher education revenue.

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