Remuneration Committee

REPORT OF THE REMUNERATION COMMITTEE 2019

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 right outcomes for students and for the University of Winchester as an institution, whilst, at the same time, demonstrating effective use of limited resources and achieving demonstrable value for money.

The current senior posts which in 2019 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 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 2019

In 2019, the Remuneration Committee met on two occasions: firstly, on 7th March and, secondly, on 3rd July. All members of the Committee at that time were present at the sessions.

At the 3rd 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 the Office for Students senior staff remuneration 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), which report 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, insights and judgements.

The relative size of the University of Winchester with 6,500 full-time students and an annual income of £79 million 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 1.8% 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, 55% of employees at the University would be affected this year, equating thereby to an average additional overall increase per employee of just under 3.5%.

In that context, the Remuneration Committee unanimously agreed at its July meeting in 2019 that the salary of the Vice Chancellor, Joy Carter, be increased by 2.8% from £226,855 per annum to £233,207 per annum, comprising a 1.8% basic uplift to mirror the national HE pay-offer and a consolidated increase of 1.0%.

 

FULL DETAILS ON THE VICE-CHANCELLOR’S CURRENT EMOLUMENTS

As at September 2019, the various elements of the Vice-Chancellor’s total emoluments are as follows:
Basic salary:

£233,207 per annum

Supplementary allowance: £45,475 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: £2,553 per annum

Employer Contribution to USS Enhanced Opt-Out Cover: £4,764

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

The Vice-Chancellor’s emoluments will be reviewed next by the Remuneration Committee at its meeting in July 2020.

VC-MEDIAN STAFF RATIO

Under the calculation methodology promulgated by the Office for Students, the Vice Chancellor’s basic salary, expressed as a multiple of the median total basic salaries of all staff is 6.5 (down from 6.7 last year).

This ratio sits within the CUC’s best practice guidance of a range between 4.5 and 8.5.

The Committee noted 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

The 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 which did not exceed £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

It was confirmed to the 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
September 2019