At least two-thirds of college presidents in financial distress received pay increases last year, a new analysis reveals.
Of the 66 institutions that were laid off or took cost-cutting measures, 43 gave their vice presidents salary increases.
Some received huge pay rises of up to 26 per cent, and many were offered contracts totalling more than £400,000 a year.
The average salary increase in these institutions between 2021/22 and 2022/23 (latest data available) was 8.3 per cent.
Universities UK, which represents vice-chancellors, said the finances of some sectors had deteriorated “rapidly” and came after calls for government help.
On Thursday, Public First, a consultancy, called for a £2.5bn fund to pay back state-backed loans to help universities avoid bankruptcy, warning that ministers must come up with a plan to prepare for the risk of at least one university collapsing due to the financial crisis.
Of the 66 institutions that took redundant or cost-cutting measures, 43 gave their vice presidents a pay rise (file photo).
Teesside University Vice-Chancellor Paul Cronje has seen his total pay package increase by 17 per cent, from £312,139 in 2021/22 to £364,305 in 2022/23.
Last night, a spokesman for the University and College Union (UCU) said: “The public will be horrified to see vice-chancellors’ pay being cut despite presiding over a bankrupt sector.”
“Thousands of workers are at risk of being laid off, and tens of thousands more are working on insecure contracts.
“Vice-chancellors urgently need to get a handle on their salaries, protect jobs, courses and student savings.”
“Taxpayers will be drowning in the throats of university presidents who demand bailouts with the maximum in their hands, and their own wallets will expand,” added John O’Connell, CEO of the Taxpayers’ Alliance.
The figures were revealed by a Daily Mail analysis of pay rise data compiled by Times Higher Education and separate data published by University of California academics.
In a telling example, Teesside University in the north-east earlier this year announced a “university-wide voluntary disengagement plan” in the face of “current challenges”.
Despite this, the vice-chancellor’s total pay package rose by 17 per cent, from £312,139 in 2021/22 to £364,305 in 2022/23.
Meanwhile, the University of Bradford is facing a £10m funding gap and announced job losses in March.
Earlier this year, Leeds Beckett University (pictured) launched a voluntary redundancy scheme.
Leeds Beckett University Vice-Chancellor Professor Peter Sly (pictured) has seen his total pay increase by 6.5 per cent to £313,000 from 2022/23.
Despite financial difficulties, the total pay package for the university’s vice-chancellor rose by more than 11 per cent to £290,000 between 2021/22 and 2022/23.
Swansea University is losing 200 staff due to cost-cutting measures implemented by Vice-Chancellor Professor Paul Boyle, who has seen his total pay rise by more than 9 per cent to £359,000 in 2022/23.
At the beginning of the year, Leeds Beckett University launched a voluntary separation scheme.
But the university’s vice-chancellor, Professor Peter Slee, saw his total pay rise by 6.5 per cent to £313,000 in 2022/23.
Meanwhile, at the University of Nottingham – where the chancellor’s package rose by 8.4 per cent year-on-year to £361,181 – a hiring freeze, budget cuts, the cancellation of hundreds of fixed-term contracts and a redundancy scheme have all brought the university to a standstill. The budget deficit is set to end the year.
The University of Wolverhampton has just announced a voluntary redundancy plan, following a similar one in 2022 which saw jobs cut to address a £20m deficit.
Their calculations show the vice-chancellor’s package in 2021/22 is 28 per cent higher than it was in 2022/23, from £345,000 to £443,000.
At that time there were two acting presidents of the university.
Coventry University Vice-Chancellor Professor John Latham has received a bonus in every year of his tenure since 2014, including around £200,000 in the past three years and £80,768 in 2022-23.
Teesside University in the north-east announced a “university-wide voluntary separation plan” earlier this year in the face of “ongoing challenges”, but its vice-chancellor Paul Cronje (pictured) has received a pay rise.
SOAS (pictured) said the overall package for 2022/23 includes venture capital housing as a taxable benefit for two academic years and does not represent an increase.
This comes despite the organisation warnings that it will have to cut around £100m over the next two years.
Professor Adam Habib, head of SOAS, University of London, where 34 English language and study skills support staff are at risk of losing their jobs, has received a total package of £410,061, up from £324,074 in 2021.22: a 26 per cent increase.
SOAS said the overall package for 2022/23 includes venture capital housing as a taxable benefit for two academic years and does not represent an increase.
This included an initial payment of £21,660 to cover taxes paid.
A spokesperson for the company added: “Excluding these payments, the basic salary of venture capitalists increased by 4.7 per cent from £223,773 to £234,204 from 2021/22 to 2022/23.”
A Teesside University spokesperson said: “The University has met all financial benchmarks for the 2021/22 and 2022/23 academic years and is in a strong financial position.” Following progress in a number of key areas, a review of operating models has been undertaken, and as part of this, a voluntary severance scheme has been introduced. Senior management remuneration is in line with UCEA’s sector standards and is determined by the Remuneration Committee, of which the Vice-Chancellor is not a member.
The salary of the Vice-Chancellor of the University of Bradford is determined by the Remuneration Committee.
A university spokesperson said: “It is made up of members from outside the university and takes into account a number of factors to ensure pay awards are sector-comparable and representative of performance.”
A Leeds Beckett University spokesperson said: “The university achieved a small surplus in 2022/23.”
“We meet the financial stability and sustainability requirements set by the Office for Students (OfS).”
“In order to position ourselves to potentially meet the future financial challenges facing the wider sector, we have taken steps to reduce our costs, including proposing a voluntary severance plan.”
A Universities UK spokesperson said: “Vice-chancellors’ remuneration is set by the governing body of their institution and reflects the level of responsibility associated with running a large organisation with multiple important responsibilities.”
The other universities mentioned were contacted for comment.
The Office for Students (OfS) has warned that 40% of universities in England are expected to face a budget deficit this year.
Universities are struggling with falling numbers of lucrative international students, UK fees, and rising running costs and pension contributions.
Earlier this year, the University of California said its independent adviser had identified three unnamed universities that were “on the brink of financial collapse and would benefit from state intervention and support.”
Meanwhile, Universities UK chief executive Vivienne Stern said universities’ finances had deteriorated “very rapidly” over the past year.
“So what we’re saying is that if a university is able to continue, as most of them are, but needs help to overcome a rapidly deteriorating financial situation, then the government should be prepared to step in as a kind of institution,” he said. “And lenders of last resort will allow them to overcome that.”
“Subtly charming bacon junkie. Infuriatingly humble beer trailblazer. Introvert. Evil reader. Hipster-friendly creator.”