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Framework for University Senior Remuneration 2017

Remuneration Committee

Framework for University senior remuneration, 2017

This note describes the remit and composition of the University’s Remuneration Committee (the “Remco”) and the framework within which the Committee decides on senior remuneration. The framework is approved by the University’s Council, to which the Committee reports annually on how it has fulfilled its remit.

This framework covers the period from January 2016 to mid-year 2017. This is a transition period which aligns the performance review period more closely with the financial and academic year. Henceforth, remuneration reviews will take place each summer.

1. Remuneration Committee composition and remit

The Remuneration Committee is a sub committee of the University’s Council and is chaired by the Chair of Council or another independent (i.e. external) Council member. It comprises four additional lay members of Council and the Vice-Chancellor, is supported by the Secretary to Council and an Assistant Secretary and is attended by the Director of the People Group in an advisory capacity. There is an additional role for an independent member external to the University which is currently vacant. The current membership of the Remuneration Committee is available online.

Within the remuneration framework approved by the Council the Committee reviews and approves pay recommendations for the following:

  • The Vice-Chancellor and President;
  • All senior roles that report directly to the Vice-Chancellor:
    • Provost
    • Registrar
    • Pro-Vice-Chancellors
    • Vice-Presidents
    • Group Finance Director
    • Strategy Director
    • Commercial Director (currently vacant)
  • Holders of significant faculty or departmental executive roles which report to the Provost, currently:
    • Chairs of Faculty (Arts, Social Sciences, Sciences, Medicine)
    • Chair, WMG
    • Executive Dean, WBS
    • Executive Dean, WMS
  • Any other senior role which has a significant influence over reward policy, currently the Director of the People Group.

2. Vice-Chancellor’s remuneration

The Remuneration Committee agrees annually the performance criteria against which the performance of the Vice-Chancellor will be reviewed. These criteria will typically include a series of objectives related to the strategic performance and development of the University on issues like research and teaching excellence, the student experience, widening access and the national and international standing and reputation of the University.

The Vice Chancellor reports to the Chair of Council who assesses how these criteria have been met (taking into account the available evidence and the views of Council members) and makes a recommendation annually to the Remuneration Committee.

In considering the Chair’s recommendation the Remuneration Committee will also take into account:

  • any guidance on Vice Chancellor’s pay issued by the Committee of university Chairs;
  • the current remuneration of the Vice Chancellor in universities of similar size and standing, as determined through the annual benchmarking review of remuneration of Vice-Chancellors undertaken by the Committee of University Chairs;
  • the relationship between the Vice-Chancellor’s salary and that of pay elsewhere in the University; including the recommendation in the Hutton report that senior pay in an institution should be a multiple of no more than twenty times the pay of the lowest paid employee.

3. Remuneration of other senior staff covered by Remco

In deciding the remuneration of those senior staff within its remit Remco will, as far as practicable and appropriate, mirror the University’s arrangements for those senior professorial and senior administrative staff below the Remco level who are covered by the Vice Chancellor’s advisory group.

It will consider annually the performance review recommendations made by the Vice-Chancellor in respect of those members of the Remco population reporting directly to him and the recommendations made by the Provost and Registrar in respect of those who report to other members of the Executive team. In reaching its final decisions it will take into account

  • performance against objectives (those objectives will generally be linked to those approved by the Remco for the Vice Chancellor);
  • sustained performance over time;
  • external benchmarks and comparators (for senior academic leaders this will, where appropriate, be external Russell Group benchmarks; for senior professional and commercial staff wider benchmarks from other sectors and other parts of the economy may also be used); and
  • affordability.

Remco has also in the past applied to this group the national pay uplift in Higher Education and, although it will review this annually, expects to do so again in 2017.

Remco will not generally award one-off bonuses but may do so in rare cases

  • where it wishes to recognise an exceptional and outstanding achievement which has enhanced the reputation and standing of the university; or
  • where bonus or other incentive arrangements are a core element of remuneration for direct comparator roles (eg for commercial or project management roles). There are no such arrangements in place currently.

4. Equality Adjustments

In taking decisions about senior remuneration Remco will consider the impact of its decisions on pay equality. Given that there are very few similar roles within the group overseen by Remco this is by definition a limited exercise, but the figures are nevertheless reviewed annually and adjustments will be made if necessary.

Remco will also review this aspect of remuneration annually on the basis of a report from the Vice Chancellor on pay equality in the University generally and more specifically in the population of senior staff. The University has an annual budget for making equality adjustments where there is a demonstrable gap in pay between males and females undertaking similar roles.

The University will be legally bound to make such equal pay reports under the rules being applied to public sector bodies, with the first report being made in 2018 reflecting the figures for end-March 2017.

Remuneration Committee
March 2017