Annual Remuneration Statement 2021
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This is the fourth annual Remuneration Statement, covering 2021. This Remuneration Statement provides the framework for decision making in respect of remuneration and in particular decision making on remuneration for senior staff.
Senior pay remuneration
All senior staff, excluding the Vice-Chancellor, are covered by the University’s Senior Pay Policy, which is published annually. This reviews performance on a biennial basis, and allows performance-based awards, as well as reviewing equity. Data drawn from the Universities and Colleges Employer Association’s (UCEA) Senior Staff Remuneration Survey and the Russell Reward Survey are used to provide evidence for any market adjustments.
The policy is set by the Remuneration Committee, whose terms of reference can be found within the University’s Ordinances. The Remuneration Committee is the body that has overall responsibility for the University’s approach to senior remuneration.
As part of this role, it takes decisions on the pay of the most senior individuals in the University, including the Vice-Chancellor.
The Remuneration Committee is appointed by and answerable to the University Council, which is the supreme authority of the University.
The Committee directly reviews and determines the remuneration, benefits and conditions of employment of the President and Vice-Chancellor and his/her direct reports.
It gives delegated authority to the Professorial and Senior Salaries Committee to make recommendations on the remuneration of Professors and senior staff not covered directly by the Committee itself.
The numbers of all staff paid above £100k are published in the financial accounts, broken down into £10k pay bands. Directly reimbursed expenses for senior staff who are members of the University Executive Board are also published. All expense claims and payments made to senior members of the University are in accordance with the University's financial regulations. These apply to all staff and are reviewed and approved annually by the University Council.
The remuneration of the Vice-Chancellor is set by the Remuneration Committee, which comprises of independent lay members of Council. The Vice-Chancellor is not in attendance for, and does not play any part in, the discussions and decisions on his own remuneration.
The Remuneration Committee determines the remuneration according to a number of factors including, but not limited to:
- the Vice-Chancellor’s leadership, management and academic experience within the higher education sector.
- the breadth of leadership and financial responsibilities for the University.
- the benchmarking of base salary against the annual salary of Vice Chancellors of Russell Group universities and other institutions of comparable size and scope.
- The performance of the University according to the strategy and agreed metrics.
The Vice-Chancellor’s base salary is reviewed in line with national pay awards for the Higher Education sector. The Vice-Chancellor took a voluntary 20% pay cut from April 2020 to October 2020 in response to the impact of the COVID-19 pandemic, with the money placed into hardship funding for staff and students impacted by COVID-19.
The Remuneration Committee approved the implementation of the Vice-Chancellor’s Reward Scheme in 2018 and the scheme provides the framework against which the Committee operates and informs any decisions on remuneration. This scheme is designed as a long-term incentive plan to reward and retain the Vice-Chancellor aligned to delivery of The Way Forward Strategy 2018-23 and the institution’s critical success factors identified in support of The Way Forward Recast. The scheme builds on the principles of the Senior Salary Review process as outlined in the Senior Staff Pay Policy.
Each year, the Remuneration Committee receives a report by the Chair of Council on the Vice Chancellor’s Performance Development Review (which includes input from Council members) and agreed objectives for the following year. This information will also support the final performance review against the scheme.
The Vice-Chancellor’s Reward Scheme involves:
An annual review of base pay in relation to the market.
Each year the HR Director prepares for the Remuneration Committee a paper benchmarking the base salary of the Vice-Chancellor against the annual salary of Vice Chancellors of Russell Group universities and other institutions of comparable size and scope. Where supported by evidence, the Remuneration Committee may, at its discretion, agree a consolidated increase to the base pay of the Vice-Chancellor. Any such increase would be reported through the financial accounts in the following year.
A long-term lump sum non-pensionable performance-related bonus payment.
The organisational performance element of the Vice-Chancellor’s Reward Scheme will be appraised over the period 2018-2023. Each year the equivalent of 5% of the Vice-Chancellor’s current base salary is placed within a deferred bonus pool. At the end of the period, an assessment of the Vice-Chancellor’s contribution towards the organisational objectives will be undertaken by the Remuneration Committee. The KPI’s used in the bonus scheme are linked to the University’s overall strategy, The Way Forward. A bonus payment will be made at this point from the deferred bonus pool accrued, the proportion awarded will be based on this final assessment, as such the Vice Chancellor does not receive any annual performance payments.
Remuneration for other staff groups
The majority of other staff are on the National Framework Agreement (NFA) pay spine and covered by the University’s Grading Structure which consist of 8 grades. These grades are supported by the Higher Education Role Analysis HERA role evaluation methodology.
Staff on NFA pay scales gain pay increases annually based on increased skill, knowledge and experience, until they reach the top of the grade’s core range. They are also subject to any nationally agreed pay awards.
The Clinical Pay Scale covers clinical staff, and replicates the NHS pay ranges. Clinical staff gain increases annually based on increased skill, knowledge and experience, until they reach the top of the grade range. Clinical consultants also gain commitment awards above the top of the consultant grade range.
The Outstanding Contribution Award Scheme (OCAS) recognises exceptional performance and contribution, resulting in both one-off awards, and any accelerated incremental progression.
Living Wage Employer
The University is an accredited Living Wage employer and as a result all staff receive at least the Living Wage Foundation rate of pay.
The ratios between the VC salary and the median pay of staff and the VC total remuneration and the median total remuneration of staff are now disclosed in the Annual Report and Financial Statements.
All settlement agreements, including voluntary severance, for professorial, professional service directors and senior staff are reported biannually to the Remuneration Committee, with details of both the severance payment and the saving to the university. Any redundancies related to academic and senior staff are subject to University’s redundancy processes.
Matters arising from the 2021 Remuneration Committee meetings
The following is an overview of matters arising during 2021:
Summary of actions taken between meetings
The Committee noted actions taking regarding appointments and severance made regarding senior staff that occurred between its regular meetings.
2021 Full Senior Salary Review
The Committee approved the recommendations made by the Professorial and Senior Salaries Committee, presented by the Vice-Chancellor. The Vice-Chancellor presented the summary of the performance assessments made in respect of his direct reports for the 2021 Senior Salary Review.
2021 Senior Salary Review for Vice Chancellor
The Vice-Chancellor was not present when the Committee received and discussed the paper on the pay of the Vice-Chancellor, where it was agreed that the Vice-Chancellor’s base salary would remain unchanged.
Document control table
|Document title:||Annual Remuneration Statement 2021|
|Date approved:||01 June 2021|