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  • Home
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Remuneration Committee Annual Report

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This report outlines the work of the Remuneration Committee for the 2021/22 academic year.

On This Page

Remit

The Remuneration Committee has responsibility for the appointment and terms of service of the Vice-Chancellor & President and the University Secretary and Chief Compliance Officer, and for the remuneration of these post holders.

The Committee also receives reports on the number of staff whose pay exceeds £100,000 and approves any payment made on the departure from the University of a member of staff earning more than £100,000.

The membership of the Remuneration Committee for the 2020/21 academic year has been as follows:

  • Doris Olulode (Chair of the Committee)
  • Anulika Ajufo (Chair of the Board of Governors)
  • John Garwood (Deputy Chair of the Board of Governors)span>
  • Janette Withey, Senior Independent Governor
  • Tommy MacDonnell, Independent member
  • Sir Les Ebdon, Co-opted member with specialist knowledge of Higher Education

As agreed, an independent member of the Board was appointed to chair meetings of the Committee from 2020/21. The Committee met on 13 October 2021, 24 May 2022 and 7 July 2022.

Minutes of these meetings may be requested but due to the confidential nature of the discussions any published documents may need to be redacted.

The Committee took account of the revised guidance issued by the Committee of University Chairs (CUC) on senior staff remuneration in both how it carried out its work and produced the annual report.

Terms of reference of the Committee are as follows:

Constitution

Ex-officio members:

The Chair of the Board of Governors, the Deputy Chair of the Board of Governors and the Senior Independent Governor.

Appointed members:

Two lay members of the Board of Governors One co-opted member (education specialist)

Total Membership: 6

Quorum: 50%

Terms of Reference

In accordance with the Articles of Government, to determine all matters concerning the appointment, terms of service, and remuneration of senior posts as defined by the Articles, namely, the Vice-Chancellor & President and the University Secretary. When considering the remuneration of the Vice-Chancellor & President, the item in question must be chaired by a member of the Committee other than the Chair of the Board of Governors.

To provide a justification for the total remuneration package for the Vice-Chancellor & President, which may be published in the University’s financial statements. The justification shall include reference to the context in which the University operates, and be linked to the value and performance delivered by the Vice-Chancellor & President. It should contain an explanation of the process adopted for judging performance.

To formulate and put in place (and thereafter to review the appropriateness and relevance of) a remuneration framework or broad policy at an institutional level for all staff, taking account of regulatory requirements and guidance, as well as the public interest, the safeguarding of public funds, the University’s interests, the need to consider equality, diversity and inclusion (to eliminate biases both conscious and unconscious pertaining to gender or other protected characteristics within the pay structure) and the need to remain competitive in relation to staff recruitment and retention through the provision of reliable, up-to-date information about remuneration in other institutions.

To approve the design of, and determine targets for, any performance related pay schemes operated by the University and approve the total annual payments made under such schemes.

To approve staff policies, regulations and procedures within the overall human resource strategy including discipline, suspension, dismissal (including on the grounds of capability, ill- health and redundancy), grievance, recruitment and selection.

To approve the staff hospitality and gifts policy and expenses policy.

To be responsible for the performance management scheme for the holders of senior posts.

To commission and collect information from relevant bodies to inform the work of the Committee and to ensure that all provisions regarding the disclosure of remuneration packages are fulfilled.

To consider and approve any severance package to be made to a member of staff whose remuneration is at least £100,000 pa and to represent the public interest and avoid any inappropriate use of public funds; the Committee should be careful not to agree to a severance package which staff, students and the public might deem excessive; contracts of employment for senior staff should specify periods of notice of not more than 12 months, and should not provide for pension enhancements. To consider and approve policy on allowances and expenses for members of the Board of Governors. To ensure that no individual is involved in deciding his or her own remuneration.

To report annually to the Board of Governors and to publish an annual statement based on its annual report containing:

  • a) a list of post holders within the remit of Remuneration and Staffing Committee;
  • b) its policy on the remuneration for postholders within the remit of Remuneration and Staffing Committee;
  • c) its choice of comparator institutions/organisations;
  • d) its policy on income derived from external activities;
  • e) the pay multiple of the Vice-Chancellor & President and the median earnings of the institution’s whole workforce, illustrating how that multiple has changed over time and, if it is significantly above average, an explanation of why; and
  • f) an explanation of any significant changes.

Chair’s action between meetings

The following categories of business may be conducted by the Chair of the Board of Governors, Academic Board or any of their subcommittees and panels and by chairs of boards of directors of subsidiary companies. Chairs should use reasonable endeavours to contact all other members before taking Chair’s action. The first three delegations are minuted in advance and then reported back at the next meeting of the board or committee.

The fourth to sixth delegation are requested in writing by officers between meetings, supported by background information and then reported back at the next meeting of the board or committee.

The relevant board or committee will monitor the use made of Chair’s action.

  1. Business which is unfinished at a board or committee meeting for lack of information but on which a clear steer is given to guide the decision when the information becomes available.
  2. Business which is approved at a board or committee subject to certain conditions to be met by the management or other parties and signed off by the chair.
  3. Business involving signature/s to the detailed formal paperwork associated with a prior decision of a board or committee such as the sale of a building.
  4. The signing of routine contracts that commit UEL, or a subsidiary company or UELSU, above a certain level of expenditure.
  5. Routine decisions on senior postholders (Chair of the Board/Remuneration and Staffing Committee only).
  6. Urgent business between meetings, canvassing the support of other board and committee members as far as possible by phone or email. Such decisions should not involve changes of policy of the board or committee and should only be taken where there is material risk to UEL, or a subsidiary company or UELSU.

External Perspectives Received by the Committee

The University participates in a number of senior level remuneration surveys, including the annual survey of Vice-Chancellors’ Remuneration, which is managed by the Committee of University Chairs (CUC). This survey has two key elements. The first compares the pay of HEI Principals and Vice Chancellors. The second measures the ratio between the pay of the Principal or Vice Chancellor and that of the average salary of employees. The University also participates in the UCEA senior staff remuneration survey and uses information from this to inform its decisions.

Approach to Remuneration

The University is in the process of reviewing its approach to remuneration but recognizes there are contractual obligations to fulfil. While it is also recognized that a lack of competitiveness will lead to a failure to recruit and retain top talent, higher pay increases and/or increased benefits at senior level could lead to negative publicity and reputational damage for the University.

The Committee recognizes that all decisions related to remuneration will need to strike a balance between recruiting, retaining and rewarding the best staff possible, in order to deliver the best outcomes for students, society and the economy, while demonstrating effective use of resources. The approach to setting remuneration will take account of political factors, economic factors, competition, market rates, roles, skills, experience and individual performance. The type of factors used in considering reward proposals for senior post holders will include, but are not limited to:

  • Performance in support of the University’s strategic objectives;
  • teaching;
  • management and administration;
  • leadership of staff;
  • governance;
  • partnerships and external relations internationally, nationally and locally;
  • major initiatives and projects; and,
  • collegiality.

The review of the approach to remuneration at the University is embracing reward and recognition for all staff. Consideration of the concept of Fair pay for all will figure in the Committee’s deliberations as these processes are formulated.

The Committee received details of the members of staff who were remunerated over £100k in 2021/22. Recognition and reward for all staff may include:

  • Pay increase aligned with the national award for all employees at or above SCP 20;
  • Additional pay increase based on individual performance and/or to retain staff member in line with market demand;
  • £1,250 Shared Success Award (subject to eligibility criteria but not open to University Executive Board members); and,
  • Additional individual performance-related pay in line with contractual benefits and/or exceptional performance/market retention.

There are 13 members of staff who earn £100k or above at the University in 2021/2022 (20/21: 16). Of these, 8 are members of University Executive Board. In 2021/22:

  • Five members of University Executive Board were awarded performance related pay of between £3,000-5,000 to be paid in July 2022.
  • One member of University Executive Board received an additional 3.7% pay rise to reflect performance and market retention payable on 1 August 2022.

As matters stand, the proposed pay for 2022/2023 for the University Executive Board will include the national agreement increase with the possibility of an uplift depending on performance.

The CUC’s annual survey of Vice-Chancellors’ Remuneration is sufficiently comprehensive to provide information comparative on the size and complexity of the institution, the nature of the HE markets and issues of recruitment and retention. It is the Committee’s intention to use this in future years.

The Committee considered the gender pay equality report for the University at its meeting on 24 June 2022 and intends to consider the impact of its decisions on pay equality in relation to remuneration. The gender pay equality report will be reviewed annually by the Committee and consideration will be given to making data available of other groups with protected characteristics.

Institutional performance

Many staff across the University continued to work diligently in facilitating the return to campus working when this was permissible. This comes on top of the work they have undertaken to help improve the University finances in the last couple of years. While the University Executive Board and other senior managers worked beyond expectations to ensure that the University is in the best possible position, the University remained mindful of the political and reputational issues associated with payments to this group of staff. The Shared Success Award that was created to reward staff across the University who have significantly supported the effort during the pandemic in 2020/21 was continued in 2021/22. The approach to remuneration is being reconsidered and will be confirmed once it is clearer what the outcome is for the sector and the University in respect of finances and sustainability.

Performance of the Vice-Chancellor & President

The Committee confirms that the Vice-Chancellor & President was not present for the discussion on her performance or remuneration for the period 2021-22.

The committee felt that the Vice-Chancellor & President had performed well in her role over what had been an extremely difficult year and it recognised that the direction of the institution under her leadership had been commendable. It was recognised that the University had remained resilient and continued to grow, despite the impact of the pandemic.

Remuneration of the Vice-Chancellor & President

The performance related pay element of the Vice-Chancellor & President’s remuneration for 2021/2022 has not yet been determined.

Emoluments of the Vice-chancellor & President 2021-22 2020-21
Salary £232,486 £229,000
Performance Related Pay tbc £15,000*
Benefits    
 - Private medical insurance £3,852.88 £3,976
- Travel and subsistence To be calculated £7,459
Subtotal    
Pension Costs £44,172.29 £43,419.50
Total £280,511.17 £299,854.50

 

*The Committee gave consideration to the performance related pay element of the Vice- Chancellor & President’s remuneration and agreed that the full amount of £15,000 should be paid in recognition of her work in the 2020/2021 academic (this was not paid until November 2021 but features in the details for 2020/21). The Vice-Chancellor & President’s objectives are agreed by the Board of Governors and her long-term objective is to deliver the University’s Vision 2028 Strategy. Overall progress towards the delivery of that Strategy is assessed each year. Discretionary performance- related payments are a contractual agreement of the Vice-Chancellor and President's salary package, although they are not automatically awarded. The Remuneration and Staffing Committee reviews the performance of the Vice Chancellor & President against a broad range of objectives and decides whether an award should be made, and the value of any amount allocated.

Pay relativities

The Remuneration and Staffing Committee noted the expectation that the ratio of median staff pay to that of the Vice-Chancellor & President should be less than 1:8.5. It can be confirmed that the Vice-Chancellor & President's current basic salary divided by the median basic salary [£43,488] is 1:5.35 and the total remuneration divided by the median total remuneration is 1:6.45.

The Remuneration and Staffing Committee agreed to use the ratio of median staff pay to that of the Vice-Chancellor & President as the relative as this was readily understood and provided a direct comparison with previous years.

Remuneration of the University Secretary and Chief Compliance Officer

The University Secretary and Chief Compliance Officer was appointed on 1 June 2020 following an external recruitment process. On appointment it was agreed that his 7 remuneration would be £110,000. The Remuneration and Staffing Committee considered the remuneration for this post when discussing the Performance Development Review in October 2021 and agreed to increase the basic salary from £110k to £115k in recognition of the extent of the role and its dual nature. As with all other members of the University Executive Board, the proposed pay for 2022/2023 for the University Secretary may include the national agreement increase.

Severance

There have been no severance payments to staff earning over £100K per annum in the year 2021/22 although one Settlement Agreement was reached with a member of staff to enable retained employment in a different capacity.

Performance-Related Pay

There have been no proposals for a performance related pay scheme for consideration in 2021/22 outside of the existing arrangements. Plans are being made to implement a new Total Reward Deal in 2022/23 and provision for this has been made in the budget for 2022/23.

External appointments and expenses

The University’s policy regarding the retention of income generated from external bodies is set out in the Financial Regulations:

  • Any agreed additional remuneration to UEL employees arising from income generating activities shall be agreed with the Dean of School or Director of Service at the outset and recompensed via the payroll.
  • Any agreed additional remuneration to Deans of School or Directors of Service arising from income generating activities shall be agreed with the Provost [in respect of the Deans of School] or the CFO [in respect of the Directors of Service] at the outset and recompensed via the payroll.
  • Any agreed additional remuneration to UEB Members arising from income generating activities shall be agreed with the Vice Chancellor and President at the outset and recompensed via the payroll.
  • Any agreed additional remuneration to the Vice Chancellor and President arising from income generating activities shall be agreed with the Remuneration and Staffing Committee at the outset and recompensed via the payroll.

The Vice Chancellor and President did not retain any income from external bodies in 2021/22.

The University’s policy regarding expenses is set out online.

The expenses of the University Executive Board are reviewed annually by the Committee.

The expenses of the Vice Chancellor and President are reviewed every six months. No irregularities have been reported in the expenses claimed by staff.

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