| By: |
James Walker (Henley Business School, University of Reading);
Peder Greve (Henley Business School, University of Reading);
Geoff Wood (Essex Business School, University of Essex);
Peter Miskell (Henley Business School, University of Reading) |
| Abstract: |
There is increasing pressure on universities to deliver social and economic
impact from their work in an increasingly market and metric driven
environment. Within the UK, increasing financial pressure has led to both an
escalation of student fees, and constrained wage growth for rank and file
faculty and administrators. In contrast, most Vice-Chancellors have secured
substantive pay packages raising concerns as to the extent to which regulatory
failures may be contributing to the rise. Against this backdrop, there is
little empirical evidence of what has driven recent changes in V-C
remuneration. Here we bring data from a panel of British universities. We find
some measures of institutional performance, internal governance and individual
characteristics are related to V-C pay and that these differ significantly
between 'old' and 'new' universities. We find evidence that V-Cs will use
their internal power within organisations to extract a disproportionate amount
of the value created by the institution. However, we do not find that the
presence of VCs on remuneration committees had a robust influence on salary.
We also find that greater transparency is associated to higher rates of
remuneration. |
| Keywords: |
pay, governance, metrics, performance, public sector, universities, Vice-Chancellors |
| Date: |
2018–07 |
| URL: |
http://d.repec.org/n?u=RePEc:rdg:jhdxdp:jhd-dp2018-04&r=all |