Framework for University Senior Remuneration, 2021/22
This framework covers the period from July 2021 to July 2022.
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 Council member. It comprises three independent members appointed by the Council, with expertise in leadership and/or senior remuneration in other sectors, of whom a minimum of two will be serving independent members of the Council and is supported by the Secretary to Council and an Assistant Secretary. Meetings are attended by key members of HR Staff in an advisory capacity, and by the Vice-Chancellor when matters being discussed have no bearing on his personal remuneration. 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:
- Group Finance Director
- Commercial Director
- Secretary to Council
- Chief Information and Digital Officer
- Chief Communications Officer
- Holders of significant faculty or departmental executive roles which report to the Provost, currently:
- Chairs of Faculty (Arts, Social Sciences, Science, Engineering and Medicine)
- Chair, WMG
- Executive Dean, WBS
- Executive Dean, WMS
- Executive Dean, WMG
- Any other senior role which has a significant influence over reward policy.
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 such as research and teaching excellence, the student experience, widening access and the national and international standing and reputation of the University. It may also include a small number of personal objectives. The Remuneration Committee may attach differential weightings to objectives at a later meeting, dependent on views about relative priorities.
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 all 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 or /the Office for Students;
- through informal consultation, the views of all members of Council, including student members, about the Vice-Chancellor’s performance and pay.
- 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.
- Guidance from the Office for Students Accounts Direction, which requires the calculation of the pay multiple. The pay multiple must be expressed as the full-time equivalent of the Vice-Chancellor’s remuneration divided by the median pay of all employees of the University (also calculated on a full-time equivalent basis).
Having received and approved a recommendation from the Chair of Council about overall performance, the Committee will recommend how that should be rewarded. Any performance-related award will be recognised through payment of a cash lump sum rather than through consolidation into base salary. The only exception to this approach will be when competitor benchmarking information reveals that the salary paid to the Vice-Chancellor at the University of Warwick has fallen behind the desired comparator.
3. Remuneration of other senior staff covered by the Remuneration Committee
In deciding the remuneration of those senior staff within its remit, the quantum available for performance related reward will, as far as practicable and appropriate, mirror the University’s arrangements for those senior professorial and senior administrative staff below the Remuneration Committee level who are covered by the University Executive Board - Remuneration.
The Committee will consider annually the performance review recommendations made by the Vice-Chancellor in respect of those members of the Remuneration Committee population reporting directly to them 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, the Committee will take into account:
- performance against objectives (those objectives will generally be linked to those approved by the Remuneration Committee for the Vice-Chancellor);
- 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.
The Remuneration Committee will review and agree the salary range for vacancies within the Remuneration Committee population prior to recruitment. and, the Remuneration Committee will be required to approve the recommended overall remuneration package which will be based on market benchmark. Thereafter, any performance related award will be paid as a cash lump sum. The Committee will review all appropriate pay benchmarks regularly to ensure that remuneration at senior levels remains competitive.
4. National Pay Award
There is no contractual entitlement for any member of staff covered by the Remuneration Committee to receive the national pay uplift in Higher Education, but the Remuneration Committee has in the past normally applied the general salary uplift to the group. This decision will remain subject to annual review.
5. Bonus Payments
The Remuneration Committee will not generally award one-off bonuses other than the performance-related cash lump sums outlined above, but may do so in very rare cases, for example:
- 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 (e.g. for commercial or project management roles). There are no such arrangements in place currently.
6. Equality Adjustments
In taking decisions about senior remuneration the Remuneration Committee will consider the impact of its decisions on pay equality. Given that there are very few similar roles within the group overseen by the Remuneration Committee, this is by definition a limited exercise, but the figures will nevertheless be reviewed annually and adjustments will be made if necessary.
The Remuneration Committee will also receive an annual review of 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 at professorial level which cannot be explained by other factors.
The University is legally bound to publish gender pay reports under the rules being applied to public sector bodies. The University has chosen to consider pay gaps in relation to gender, ethnicity, disability and sexual orientation and these will be also reviewed annually by the Remuneration Committee for subsequent presentation to Council before final publication.