College leaders have agreed to a brand new code on senior pay, which is predicted to be revealed within the subsequent few weeks.
College representatives held a gathering with minister Jo Johnson on Wednesday the place they accepted the necessity for extra accountability.
It follows fierce criticism of college leaders over claims of extreme senior pay, with the head of the University of Bath stepping down.
Mr Johnson says “public confidence” over pay needed to be restored.
The colleges minister met leaders of Universities UK, the Russell Group and the Committee of College Chairs – with Mr Johnson calling for extra restraint over pay.
Honest pay code
It’s understood “truthful remuneration code” might be revealed in January for college leaders, by the Committee of College Chairs.
Mr Johnson instructed college leaders that there have to be a extra clear and impartial system for the setting of senior salaries – and an finish to the “upwards ratchet in pay”.
He set out a sequence of necessities, together with that vice chancellors should not sit on the committee that decides their pay.
There may also should be disclosure of advantages, reminiscent of subsidised housing and bills.
The dimensions of pay gaps between college heads and tutorial employees may also should be revealed.
“It’s important that pay preparations command public confidence and ship worth for cash for college kids and taxpayers,” stated Mr Johnson.
Universities, below growing public strain and protests from their very own tutorial employees, say additionally they wish to “rebuild public confidence”.
“We agree extra must be achieved to make sure the method for deciding senior pay is seen as open and accountable,” a Russell Group spokesperson stated.
The group of main universities says it’s backing “a brand new code to make sure pay-setting preparations are as rigorous and clear as they are often”.
Universities UK stated “aggressive pay is critical to draw first fee leaders” however a brand new code can be a “welcome step”.
“As universities obtain funding from taxpayers and thru pupil charges, it’s cheap to anticipate pay choices to be truthful, accountable and justified,” stated a Universities UK spokesman.
Mr Johnson final week warned the college sector that it wanted to get pay below management – and new regulator can be used to implement this.
There have been a sequence of protests over vice-chancellors’ pay in latest weeks – together with on the College of Bathtub, the College of Southampton and at Bathtub Spa.
“Has there been an issue? Most positively,” stated Mr Johnson final week. However he stated universities now recognised the necessity to reply public considerations about worth for cash.
“I feel they are surely beginning to get it.”