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UK鈥檚 top-paid vice-chancellors earn more from sector pension fund

Sir David Eastwood earns 拢90,000 as USS chair, while Dame Glynis Breakwell gets 拢50,000

Published on
December 21, 2017
Last updated
January 23, 2018
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Some of the UK鈥檚 best-paid vice-chancellors have received further pay rises from their roles as directors of the sector鈥檚 main pension scheme, Times Higher Education can reveal.

Sir David Eastwood, the vice-chancellor of the University of Birmingham, was paid 拢90,000 last year in his capacity as chair of the Universities Superannuation Scheme. Dame Glynis Breakwell, vice-chancellor of the University of Bath, received 拢50,000 as chair of the fund鈥檚 policy committee.

The fees paid to the USS鈥 12 directors increased in 2016-17, although they had been frozen for three years before that.

Details of the payments were released to 色盒直播 by USS and emerged as the scheme looks to plug a 拢7.5 billion deficit. Universities UK is advocating an end to the USS鈥 defined benefit scheme, a proposal that will reduce payments to scheme members in retirement.

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For vice-chancellors serving on the board, who are appointed by UUK, USS fees are on top of their university salaries. Sir David鈥檚 from Birmingham totalled 拢439,000, up from 拢426,000 the year before (a 3 per cent increase), and he also stands to gain 拢80,000 over four years if specific performance targets are met under a 鈥渓ong-term incentive plan鈥.

Dame Glynis announced her retirement last month amid mounting criticism of her remuneration at Bath, which totalled 拢468,000 in 2016-17.

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The third university leader who sits on the USS board, Sir Anton Muscatelli, principal of the University of Glasgow, was paid 拢35,000. However a Glasgow spokesman said that Sir Anton 鈥済ifts this entire amount every year鈥 to the university, and 鈥渁lways has done鈥.

鈥淪ir Anton鈥oes it because he thinks it is the right thing to do,鈥 the spokesman said.

Sir David and Dame Glynis declined to answer directly when asked if they did the same.

A spokesman for the University and College Union accused 鈥渨ell-remunerated vice-chancellors鈥 on the USS board of 鈥減ulling the ladder up on their staff鈥 at a time when UUK鈥檚 proposed reforms 鈥渨ould slash pensions by as much as 40 per cent鈥.

Roger Brown, former vice-chancellor of Southampton Solent University, said that Sir David and Dame Glynis were on the board only听by virtue of being vice-chancellors and that any earnings should therefore 鈥渂e paid to their employer鈥.

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鈥淏eing a vice-chancellor of a university is not a small thing and vice-chancellors are not paid a small salary,鈥 he said. 鈥淓verything you do during your time at a university should be to the credit of the university.鈥

The USS鈥 says that the remuneration of its 12 directors totalled 拢731,000 in the year ending March 2017, up from 拢591,000 the year before.

A USS spokesman said that vice-chancellors sitting on the board 鈥渉ave personal responsibilities to fulfil as directors of the trustee company that are distinct from their other roles鈥.

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鈥淏oard members are responsible for the stewardship of a significant financial institution鈥hich requires a substantial commitment of time and effort to demanding roles,鈥 the spokesman said. 鈥淭hey are remunerated on a basis which is approved by the joint negotiating committee, made up of union and employer representatives. No member of the JNC serves on the [USS] board.鈥

Asked whether he paid his earnings from USS to Birmingham, Sir David answered that he was 鈥渃ommitted to giving generously鈥 and that the value of his giving to the university alone 鈥渆xceeds 拢100,000鈥. Asked the same question regarding Bath, Dame Glynis said that she had 鈥渁lways chosen not to publicise the nature, scale or object of my philanthropy鈥.

About 190,000 staff in mainly pre-92 institutions are covered by the USS. released by UUK last week indicates that its proposals would reduce pension incomes by up to 17 per cent: for example, a member with 10 years鈥 service earning between 拢35,000 and 拢45,000 could expect an annual income of 拢22,500, including the state pension, rather than 拢26,000. UCU鈥檚 analysis suggested much higher reductions, of up to 39 per cent.

chris.havergal@timeshighereducation.com


Board member Role Appointed by Fees for role (拢)
Sir David Eastwood Chair UUK 90,000
Kevin Carter Deputy chair Independent 80,000
Dame Glynis Breakwell Sub-committee chair UUK 50,000
Kirsten English Sub-committee chair Independent 50,000
Michael Merton Sub-committee chair Independent 50,000
Rene Poisson Sub-committee chair Independent 50,000
Ian Maybury Independent 50,000
Dave Guppy UCU 35,000
Jane Hutton UCU 35,000
Sir Anton Muscatelli UUK 35,000
Stuart Palmer UUK 35,000
Steve Wharton UCU 35,000

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Source: USS. UCU policy states that its nominees should not gain personal benefit from their position on the board if they are in full-time work.

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Reader's comments (1)

As Mike Otsuka has pointed out (see his "UUK can鈥檛 transform a sow鈥檚 ear into a silk purse"), UUK's comparison of their proposals with the current benefits is a shocking abuse of figures. One of the biggest howlers is using higher best-estimates for investment returns than those which show the defined benefit scheme to be unaffordable. It's disappointing that they show such contempt for their staff. https://medium.com/@mikeotsuka/uuk-cant-transform-a-sow-s-ear-into-a-silk-purse-8c764ce57e83

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