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REMUNERATION COMMITTEE ANNUAL REPORT 2019/20

This report outlines the work of the Remuneration Committee for the 2019/20 academic year.

USS Campus

Remit

The Remuneration Committee has responsibility for the appointment and terms of service of the Vice-Chancellor & President and the University Secretary and Chief Compliance Officer, and for the remuneration of these post holders.

The Committee also receives reports on the number of staff whose pay exceeds £100,000 and approves any payment made on the departure from the University of a member of staff earning more than £100,000.

The membership of the Remuneration Committee for the 2019/20 academic year has been as follows:

  • Geoff Thompson (Chair of the Board of Governors) to 29 October 2019
  • Anulika Ajufo (Chair of the Board of Governors) from 29 October 2019
  • Tony Mullee (Chair of the Finance and Resources Committee)
  • Janette Withey, Independent member
  • Tommy MacDonnell, Independent member

There was a vacancy on this committee, for a co-opted member with specialist knowledge of Higher Education. A recruitment process for new members of the Board identified someone with specialist knowledge of Higher Education and he has been appointed to the Committee for 2020/21.

An independent member of the Board will chair meetings of the Committee from 2020/21.

Terms of reference of the Committee are as follows:

In accordance with the Articles of Government, to determine all matters concerning the appointment, terms of service, and remuneration of senior posts as defined by the Articles, namely, the Vice-Chancellor & President and the University Secretary. When considering the remuneration of the Vice-Chancellor & President, the item in question must be chaired by a member of the Committee other than the Chair of the Board of Governors.

To provide a justification for the total remuneration package for the Vice-Chancellor & President, which may be published in the University’s financial statements. The justification shall include reference to the context in which the University operates, and be linked to the value and performance delivered by the Vice-Chancellor & President. It should contain an explanation of the process adopted for judging performance.

To formulate and put in place (and thereafter to review the appropriateness and relevance of) a remuneration framework or broad policy at an institutional level for all staff, taking account of regulatory requirements and guidance, as well as the public interest, the safeguarding of public funds, the University’s interests, the need to consider equality, diversity and inclusion (to eliminate biases both conscious and unconscious pertaining to gender or other protected characteristics within the pay structure) and the need to remain competitive in relation to staff recruitment and retention through the provision of reliable, up-to-date information about remuneration in other institutions.

To approve the design of, and determine targets for, any performance related pay schemes operated by the University and approve the total annual payments made under such schemes.

To be responsible for the performance management scheme for the holders of senior posts.

To commission and collect information from relevant bodies to inform the work of the Committee and to ensure that all provisions regarding the disclosure of remuneration packages are fulfilled.

To consider and approve any severance package to be made to a member of staff whose remuneration is at least £100,000 pa and to represent the public interest and avoid any inappropriate use of public funds; the Committee should be careful not to agree to a severance package which staff, students and the public might deem excessive; contracts of employment for senior staff should specify periods of notice of not more than 12 months, and should not provide for pension enhancements. To consider and approve policy on allowances and expenses for members of the Board of Governors.

To ensure that no individual is involved in deciding his or her own remuneration.

To report annually to the Board of Governors and to publish an annual statement based on its annual report.


The Committee revised its terms of reference which was approved by the Board on 7 July 2020. The new title of the Committee is the Remuneration and Staffing Committee

External Perspectives Received by the Committee

he University participates in a number of senior level remuneration surveys, including the annual survey of Vice-Chancellors’ Remuneration, which is managed by the Committee of University Chairs (CUC). This survey has two key elements. The first compares the pay of HEI Principals and Vice Chancellors. The second measures the ratio between the pay of the Principal or Vice Chancellor and that of the average salary of employees.

The Board of Governors is actively seeking to recruit a member with experience of the provision of higher education. Such a member will be invited to sit on the Committee to provide additional external perspective.

Performance of the Vice-Chancellor & President

The Committee confirms that the Principal was not present for the discussion on Vice-Chancellor & President’s performance or her remuneration for the period 2019-20. The Chair of Governors confirmed that an annual appraisal had taken place with the Vice-Chancellor & President. Remuneration of the Vice-Chancellor & President

The Committee gave consideration to the remuneration of the Vice-Chancellor & President. No changes to base pay have been made in the current year. The Committee has agreed an award of Performance Related Pay for 2019/20, as specified in the Vice-Chancellor and President’s contract, following a review of the objectives agreed for that year with the previous Chair, and a recommendation to the Committee from the current Chair. The review for 2018/19 was undertaken later than specified in the contract, as a result of circumstances around the resignation of the former Chair. A meeting of the Remuneration Committee will be scheduled in October 2020 to receive a recommendation from the Chair on Performance Related Pay for 2019/20. The Vice-Chancellor & President’s Remuneration in figures is set out below:

  • Current (wef 1 August 2020) = £229,000
  • Previous year Salary = £229,000
  • Performance Related Pay = N/A
  • Benefits = see below
  • Pension Costs = see below
    Total = £294,000

Pay relativities

The Remuneration Committee noted the expectation that the ratio of median staff pay to that of the Vice-Chancellor & President should be less than 1:8.5. It can be confirmed that the Vice-Chancellor & President’s current basic salary divided by the median basic salary [£40,608] is 1:5.6 and the total remuneration divided by the median total remuneration is 1:7.2.

Appointment and Remuneration of the University Secretary and Chief Compliance Officer

The Committee approved the remuneration and other terms and conditions of the University Secretary and Chief Compliance Officer following an external recruitment process.

Severance

There have been no severance payments to staff earning over £100K per annum in the year 2019/20.

Performance-Related Pay

There have been no proposals for a performance related pay scheme for consideration in 2019/20.

Future Reports-Remuneration Decisions for 2020/21

In addition to the matters considered above the following remuneration decisions will be covered in the report for 2020/21:

  • The Committee will monitor its progress on compliance with the CUC Higher Education Senior Staff Remuneration Code (the Remuneration Code)
  • The Committee will consider the impact of its decisions on pay equality in taking decisions about senior remuneration the Remuneration.
  • The Committee will also receive an annual review of pay equality in the University. The University recognises it is legally bound to make gender pay reports and its gender pay report will be reviewed annually by the Committee for subsequent presentation to the Board of Governors prior to publication.
  • While there is no contractual entitlement for any member of staff covered by the Remuneration and Staffing Committee to receive the national pay uplift, the matter will be noted by the Committee.
  • Vice-Chancellor & President’s Report on Senior Post-Holders-the Committee should receive a report on senior post-holders, namely members of the UEB. This will be for information rather than decision.
  • Chair’s report on the Vice-Chancellor & President’s performance for 2020/21.