Vice-Chancellor's Office Pay Statement – 2018/19
Professor Sir David Eastwood is recognised within the higher education sector as a highly successful and experienced leader of a large, complex organisation with global reach. The University contributes more than £3.5billion to the economy, it has more than 35,000 students and 8,000 members of staff. In 2018/19 it had an annual turnover in excess of £716m, up from £680m in 2017/18 as well as assets of almost £1.2bn. The Vice-Chancellor’s total remuneration reflects the size and complexity of the organisation, and as a percentage of university turnover it is less than a third of the sector average (0.06% compared to the sector average of 0.230%). It also reflects Sir David’s huge experience – he was previously Chief Executive of HEFCE and AHRC, and Vice-Chancellor of UEA and is a go-to person nationally and internationally for advice on Higher Education policy matters.
There is a global market for talented University leaders, with many Australian and North American universities paying significantly more than leading UK institutions: a reality which needs acknowledging if the UK wishes to retain its cherished position as being second only to the US for its HE system.
Under Sir David’s leadership, it is widely recognised that the University’s performance has improved markedly. Aspects of this rise include: an exceptional research performance with the highest ever annual research awards performance; growth of our research reputation; and the recruitment of internationally renowned academics. In terms of teaching: the University achieved Gold in the Teaching Excellence Framework, which particularly commended student satisfaction with the quality of teaching and progression of graduates; a strong student recruitment performance with a significant demand from applicants to study at Birmingham; and maintained amongst the highest levels of graduate employment in the sector. The University has seen a sustained strong financial position in a challenging environment including the generation of an annual cash surplus of 10% to support continued investment in the academic staff, key support services, and the University’s campus and infrastructure. Also notable is the continued strong performance in domestic and international league tables. Staff across the University are integral to this success.
Birmingham is a vital anchor institution for the City and Region, and supports 1 in 50 jobs in the city. Major innovations such as the University of Birmingham School, Institute of Translational Medicine, Birmingham Life Sciences Park and The Exchange which will open in 2021 in the renovated Municipal Bank in the city centre, are focused on benefitting the people of Birmingham. This is an international university, with partnerships across the globe and a much expanded international presence including through our rapidly growing teaching delivery in China, Singapore, and Dubai. We are also one of the most successfully run universities in the sector, with a sustained and strong financial performance which enables us to continue to make major investments in students, staff and facilities - including a commitment to invest more than £600 million in transforming our campus and to continuing to grow our academic, professional services and support staff . For example, in the last year alone we have invested in more than 300 additional full time equivalent staff posts, which includes 135 new academic staff. The Vice-Chancellor’s remuneration reflects these achievements, as does our approach to rewarding the contributions of colleagues across the University.
The Vice-Chancellor continues to be a generous donor to the University as well as other higher education institutions and charities
In accordance with the CUC Higher Education Senior Staff Remuneration Code, the Vice-Chancellor is not a member of the Remuneration Committee. No members of staff, including the Vice-Chancellor, are present at Remuneration Committee for discussions of their own remuneration. All decisions on senior pay are made by the University’s Remuneration Committee of lay members of Council. The Remuneration Committee is not chaired by the Chair of Council, who determines the Vice-Chancellor’s objectives and reports on his performance, but by the Deputy Pro-Chancellor, to ensure the independence of judgement.
The University makes a transparent and detailed disclosure on how the Remuneration Committee determines senior pay in its Annual Accounts (link to 2018/19). The University complies with OFS Accounts Direction and other guidance on senior staff remuneration, including the CUC Higher Education Senior Staff Remuneration Code issued in June 2018.
In the last few years increases to the Vice-Chancellor’s pay have been less than or in line with average increases paid to other staff. In the last year the Vice-Chancellor’s remuneration increased by 1.4% between 2017/18 and 2018/19. This compares to an average increase in staff pay (including increments and performance payments) of more than 3%.
Senior staff pay
In line with other major research universities, the significant majority of senior staff paid more than £100k are not ‘managers’ but are in fact Professors, or Clinical Academics on NHS pay structures. Like other global universities our senior salaries reflect the quality of colleagues we recruit and retain and the fierce and global competition for the best staff. Ultimately, it is our students who benefit from our ability to attract and retain the best staff.
The Vice-Chancellor’s residence on campus is used as a venue for more than 100 University events for staff, students and external stakeholders every year. The Vice-Chancellor has shared use of a University car for business related travel.
The Vice-Chancellor, Professor Sir David Eastwood said:
"I am committed to giving generously. The value of my giving to the University of Birmingham alone, for example, significantly exceeds £100,000. I also give to numerous other educational, cultural, and social causes. My intention was quietly to exemplify the virtue of philanthropy. As a result of my earnings and personal belief in the importance of philanthropy I am able to give significant support to a range of institutions and causes that change people’s lives, and more generally use what I earn responsibly and with integrity.
“As part of my continuing commitment to transparency about my earnings from external roles, I gift my earnings as Chair of USS to the David and Jan Eastwood Educational Development Fund, which supports a range of causes across the University, and to other educational charities, and my fee for a part-time non-executive role as Director of INTO is gifted to INTO Giving, the philanthropic arm of INTO."