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.. /ProcSet [/PDF /Text] 2022-02-22T13:09:18+01:00 /Count 12 Australias National Tertiary Education Union, however, has raised concern that vice-chancellors earned eight times the salary of senior lecturers in 2017. /Resources << One of the reasons why the business people on Australian universities' senior pay committees 'have a very unrealistic sense of what salaries should be in the higher education sector' is because Australian business bosses' pay has also increased disproportionately to that of their workers and that of their international counterparts. In only 11 Australian universities were VCs formally excluded from such deliberations. >> 15 0 R 16 0 R] "Australia is not the colonies any more. Profits accrue to those who own the means of production as a reward for risking capital. By John Ross. This would require considerable political will, but there is little evidence of an appetite for that. See how your uni Vice Chancellor's pay compares to everyone else's True A bill put before the SA parliament last October sought to tie vice-chancellors salaries to that of the premier. Instead, we show that neither nation is an outlier. Alex Usher, Canadian-based higher education strategist. 3 0 obj Print headline: Reeling it in: average Australian v-cs pay edges towards A$1m, Already registered or a current subscriber? /Rotate 0 >> He is also the Director of the Grattan Institute, Melbourne Business School and the Melbourne Theatre Company . 2. The Australian National Tertiary Education Union (NTEU) argued that Australian VCs were the highest paid in the world (Kniest, Citation2017). /Resources << stream Apart from a small number of newer for-profit institutions (beyond the scope of this article), universities remain private, charitable and self-governing. /Parent 2 0 R It is that unpleasant of a job sometimes, and I have better things to do with my life. Vice-Chancellor's introduction It has been said that 2020 was an unprecedented year for the whole world - and ANU was no exception. The UK has a similar history to Australias on the setting of academic staff salaries. After 1945, the University Grants Commission (which channelled government funding) determined salaries and pay scales in consultation with the academic union. Campus Morning Mail is an independent newsletter written and published by Stephen Matchett, formerly a long-serving journalist at The Australian newspaper. . "Dr Spence is going to get half of what he does now, in a far more prestigious university, and the UCL salary is actually worldwide competitive," he said. << academic workforce casualization University of Queensland. /Subtype /XML It was wrong to say Australia had to pay more to lure top talent. 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. Our universities were nowhere near as loud as Australian ones in claiming poverty during COVID-19 and did not resort to mass lay-offs either, Mr Usher said. There are a small number of parallel studies of universities. Professional management functions have come to the fore in the pursuit of business objectives and VCs both see themselves and are seen by others, including governments and government agencies, as chief executive officers. 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). >> 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. Last year, he donated his $14,000 long-service leave payment to a staff welfare fund. . This is a clear failure of university governance and appears to have enabled VCs to secure remuneration for themselves at levels that exceed that which would serve as an appropriate reward necessary to ensure the appointment and retention of suitably talented people. Gschwandtner and McManus (Citation2018) also utilised this data, reporting that, between 2007 and 2015, VC remuneration rose by 20.6% in real terms. In interpreting the table, we need to be wary of changing vice-chancellor employment over the three years as this distorts remuneration. These bands are set by the owners of public universities, that is, state and territory governments. /Type /Catalog Details - Senior Advisor, Government Relations - Federation University Im spinning out companies, but it takes time. Hard Facts and Insider Analysis from Stephen Matchett, greater transparency and accountability are necessary. I keep reminding people that a university is not a corporation, says Schmidt. All my excess money I donate.. From 1976 to 1986, the Australian government set recommended maximum salaries for vice-chancellors. %PDF-1.7 3 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. 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. 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). Australian vice-chancellors join the millionaires' club 3435). 7. I am still an academic here., Vice-chancellors earn their high pay because the jobs are horrific, says Brian Schmidt. University of Melbourne vice-chancellor Duncan Maskell is due to become Australias highest-paid vice-chancellor from next month.Credit: Justin McManus. Six universities in England paid their vice-chancellors 500,000 or more in salary, bonuses and benefits last year, while nearly half of all VCs received more than . 20 May. Associate Professor in Education Leadership, Deakin University, Chair Professor, New Social Research, Tampere University. /Type /Page It's not their job. But at Bartlett High School, a local public school with 2000 students, he found a posse of like-minded souls and teachers. Government being a proactive principal worked before in Australia. Vice-chancellors' average remuneration has soared from 2.9 times lecturers' pay in 1975 to 16 times in 2018. 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. Note 3: * represent years in which the VC may have not served for the full calendar year. If you are experiencing technical difficulties with your application, please email the Recruitment team or phone 03 5327 9756. That did not happen. /Type /Pages >> << >> Further, there is a demonstrated link between these increases and formulaic pay-setting mechanisms such as benchmarking (Gschwandtner & McManus, Citation2018). Rockhampton-founded Central Queensland University has posted a $24.3 million loss while the Vice-Chancellor and President Professor Nicholas Klomp was paid an annual salary of up to $794,999, the . >> Australia has no comparable data set or consequent analysis; however, annual rises are dutifully reported in the press. A survey of vice-chancellors salaries by AFR Weekend based on available data shows that in 2020 the average pay packet was $900,000, with nine earning in excess of $1 million. The escalation of VC remuneration in this context suggests rent-taking. /ExtGState 18 0 R Sky-high v-c pay 'a failure of governance' - Times Higher Education