Remuneration Committee

The University has a Remuneration Committee as an important part of its overall governance arrangements. The primary function of the Committee is to determine annually the remuneration of specific senior staff post holders. It meets at least twice a year to prepare and decide on the outcomes. A secondary function of the Committee is to determine any severance payment to be made to a senior post holder in respect of the termination of their employment, under the terms of a settlement agreement, as and when this arises.

The Remuneration Committee is committed to complying with all the elements of the CUC’s (Committee of University Chairs) guidelines on best practice, as set out in its Higher Education Senior Staff Remuneration Code, published in June 2018.

The University’s Remuneration Committee seeks to ensure at all times that its decisions are based on robust evidence, including performance against personal objectives; the performance of the University against its KPIs and targets; and the use of relevant benchmarking comparators.

The Remuneration Committee recognises it must strike the right balance between recruiting, rewarding and retaining the best senior staff possible in order to deliver the best outcomes for students and the University of Winchester as an institution, whilst, at the same time, demonstrating effective use of limited resources and achieving value for money.

The current senior posts which fall under the remit of the University of Winchester Remuneration Committee (and the current named incumbents) are as follows:

The four members of the Senior Management Team – the Vice Chancellor, the two Deputy Vice Chancellors and the Assistant Vice Chancellor - are all eligible to receive a performance related pay element in their annual remuneration review, based on exceptional performance.

The members of the Remuneration Committee are all independent, non-executive members of the University’s Governing Board. Importantly, the Vice-Chancellor is not a member of the Committee and plays no part in the final discussions and decision making of the Committee in relation to determining the emoluments of any of the senior staff within its remit. The current membership of the Remuneration Committee is as follows:

It should be noted that the Remuneration Committee is chaired by the Chair of the Human Resources Committee, a non-executive governor, and not by the Chair of the Board of Governors, in line with CUC best practice guidance.

The Director of Human Resources at the University, Malcolm Willis, acts as the Secretary to the Remuneration Committee.

REMUNERATION COMMITTEE MEETINGS IN 2018

In 2018, the Remuneration Committee met on two occasions: firstly, on 7th March and, secondly, on 4th July. All members of the Committee were present at both sessions.

At the 4th July session, the Vice Chancellor, Joy Carter, was invited to attend part of the meeting but only in relation to the salary reviews of her direct reports - the First Deputy Vice Chancellor; the Deputy Vice Chancellor and the Assistant Vice Chancellor - in order to give an overview of their individual performances against personal objectives in the past year. She left the meeting before any discussions took place amongst Committee members about any of the individual senior management remunerations.

The CUC Code on Remuneration had been distributed to all members of the Committee before the meeting. The Chair stressed that their decisions should be based on fair, appropriate and justifiable remuneration that demonstrates procedural fairness and sensitivity to the stewardship of University funds to ensure value for money and the protection of the Institution’s reputation.

The Committee had access to a range of information to inform its decisions including:

  • the University’s latest overall key performance indicators table and associated RAG ratings and trends, set against agreed strategic targets for the University as a whole;
  • the latest position on the HE-wide pay negotiations;
  • the current median pay ratio of the Vice Chancellor to all university staff;
  • HE comparator remuneration data for senior staff in similar sized universities including UCEA’s senior staff remuneration 2017 survey and the CUC Vice-Chancellor salary survey; plus,
  • some relevant data re external senior staff in public bodies locally (Hampshire County Council and Winchester City Council).

All this information was examined, alongside, importantly:

  • the individual staff development reviews (SDRs), reporting on performance assessment against personal objectives set for the past year;
  • the Vice Chancellor offering her own views in relation to her direct reports’ performance in the past year;
  • the skills and experience of the incumbents; and,
  • the Committee members own observations and insights.

The relative size of the University of Winchester with 6,500 full-time students and an annual income of £75million was set against similar sized institutions when benchmarking and referencing comparator data. (The relevant comparator band for Winchester is the £70-£100m band comparing 11 institutions.)

The latest position of the HE Sector pay negotiations was noted, including the employer’s final pay offer of a 2.0% uplift on the salaries of all staff above point 14 on the national pay spine. It was also noted that additionally, in relation to incremental progression within pay grades, 66.5% of employees at the University would be affected this year, equating thereby to an average additional overall increase per employee of fractionally under 4%.


EMOLUMENTS OF THE VICE CHANCELLOR

The Remuneration Committee unanimously agreed the salary of the Vice Chancellor, Joy Carter, be increased by 3.5% from £219,184 per annum to £226,855 per annum, comprising a 2.0% basic uplift to mirror the national HE pay offer and a consolidated increase of 1.5%.

For comparison purposes, in the previous year, the Committee agreed a salary increase of 1.7% for the Vice-Chancellor, together with a non-consolidated bonus payment of £4,310.

DETAIL ON THE VICE-CHANCELLOR’S CURRENT EMOLUMENTS

As at September 2018, the various elements of the Vice-Chancellor’s total emoluments are as follows:

Basic salary: £226,855 per annum

Supplementary allowance: £40,833 per annum

(This payment is made in lieu of employer pension contributions to the Universities Superannuation Scheme (USS) which were formerly paid when the Vice-Chancellor was in membership of USS.)

Healthcare cover: £ 2,524 per annum

Employer Contribution to USS Enhanced Opt Out Cover: £ 7,770

(This provides cover against the eventualities of either ill health retirement or death in service.)

The Remuneration Committee had particular regard to the Vice Chancellor’s performance against her own personal objectives; to the performance of the University as a whole; to HE comparator remuneration data for similar sized sector institutions; to the latest position on the HE-wide pay negotiations; and to her roles in relation to the wider Higher Education sector, which bring credit to the Institution and are often carried out in her own time.

The Vice-Chancellor’s emoluments will be reviewed again by the Remuneration Committee at its meeting in July 2019. Following that review, this web page will be updated to cite the equivalent figures to be effective from 1 August 2019.

PAY RATIO OF THE VICE CHANCELLOR SET AGAINST THE MEDIAN FOR ALL STAFF:

In line with the CUC Code on Senior Staff Remuneration, published in June 2018, and the new Office for Students Accounts Direction guidance, published in October 2018, the Remuneration Committee is committed to disclosing two pay ratios, which show the Vice Chancellor’s pay as a multiple of the median earnings of the University’s whole staff (as at 31st July 2018). 

The first is the ratio of her basic pay set against the median basic pay figure for all staff (on a full-time equivalent basis)). That figure in 2018 is: 6.7

The second is the ratio of her total remuneration set against the median figure of the total remuneration of all staff (on a full-time equivalent basis). That figure is: 6.9

These ratios sit within the CUC’s best practice guidance of a range between 4.5 and 8.5.

The Committee notes that the current in-house provision of services such as cleaning, porters and security at the University of Winchester have the effect of increasing the above pay multiple in comparison to the pay multiple applicable at other universities which outsource some or all of these services.

External Income of SMT members

At its meeting in July 2018, the Remuneration Committee noted that two members of the Senior Management Team (Joy Carter and Colette Fletcher) had declared that they had received no external income during the current financial year. Two other members (Elizabeth Stuart and Neil Marriott) declared nominal amounts received of less than £250. The Committee agreed that as the sums were low and insignificant, there was no material issue as to why they should not be retained. 

The Committee agreed that all such external income should continue to be declared and brought to the attention of the Committee through the Secretary, and that retention or otherwise should be decided on a case by case basis.

Expenses Policy

It was confirmed to the Remuneration Committee that the University adopts a universal, institution-wide single published expenses scheme that applies to all staff.

The Committee received assurance that the scheme operates effectively across the University of Winchester.


Mark Byford
Chair Remuneration Committee.
October 2018