Update from Chair of Remuneration Committee regarding incoming President and Vice-Chancellor remuneration and contractual detail
Last updated: Monday, 15 April 2024
When we announced on 20 December 2023 the appointment of Professor Duncan Ivison as the incoming President and Vice-Chancellor we said that more information would follow in the Spring. We are now in a position to publish Duncan’s finalised remuneration and contractual details.
The process for agreeing remuneration for the incoming President and Vice-Chancellor
As well as providing those remuneration details which are available below, we wanted to explain the process of agreeing that remuneration for the incoming President and Vice-Chancellor, which started before and then ran alongside the search and selection process.
The Remuneration Committee, which I chair as a lay member, sets the remuneration for the President and Vice-Chancellor and other members of the Senior Leadership team. Philippa Hird as Chair of the Board and Caroline Johnstone as Chair of Finance Committee are members of the Committee in an ex-officio capacity and Nick Hillman is a further lay member appointed by the Board. For matters relating to the remuneration of the President and Vice-Chancellor, the Committee also has a student member, Hannah Mortimer, and a Senate elected Board member, Paul Mativenga.
The Board agreed that there would be three stages to the process of determining the remuneration for the incoming President and Vice Chancellor.
1. Before the search commenced, determining a remuneration range to allow the search firm to target the right candidates. To assist this process, the Remuneration Committee commissioned an independent report on sector remuneration from Korn Ferry to inform our positioning. Factors which further informed this discussion were:
I) The job specification (which had been shaped by extensive engagement across the University). From this we were clear that (unlike some other large universities) there were substantive internal and externally facing aspects to the role. It was important therefore that we were able to attract those who were already serving Vice Chancellors and other high performing sector leaders.
II) The need to be internationally competitive particularly in the context of the higher remuneration typically seen in the US and in Australia and the need to reflect the University’s position as one of the biggest in the UK and the Russell Group.
III) A decision that membership of USS (rather than a cash alternative) would be offered as part of the remuneration package, and that, unlike a number of other universities, there would not be a bonus scheme or the entitlement to accommodation. There was recognition that this was a challenge given that flexibility on pensions is widespread in the sector and was likely to be an expectation for international candidates.
IV) The role should be able to attract candidates who were a good fit from outside the sector.
V) Crucially, the need for the overall remuneration package to reflect responsible and conservative use of our funds.
The Committee noted that the size and scale of the institution and the role would imply that an Upper Quartile Russell Group positioning was appropriate but, weighing up all the above factors, agreed that the total remuneration package should be closer to the mid-point in the Russell Group for comparable remuneration. Whilst this meant that the total remuneration package was below the largest institutions, the Committee was comfortable that this was the right balance.
2. Through the search process, which was supported by our appointed search firm, Saxton Bampfylde, it became clear early on, that the remuneration offered was not sufficient to attract significant interest from outside the sector and for several people on our long list it represented a reduction on their current package. However, the job remained sufficiently attractive to retain a very strong pool of candidate interest. The Committee therefore confirmed that the Russell Group mid-point remuneration range was broadly correct. The total remuneration of each of the shortlisted candidates was at the higher end of the agreed range, and before entering the final stage of the process, it was confirmed that the remuneration would not be a barrier to appointment.
3. The final stage was a meeting of the Remuneration Committee following the interviews and before the recommendation for appointment went to the Board. On the Committee’s recommendation the Board confirmed a total remuneration package in the agreed Russell Group mid-point range which would not be reviewable for two years (until April 2026) which was subsequently offered to Professor Duncan Ivison and which he accepted.
Summary of remuneration and contract details (Word Doc, 417KB)
According to the latest publicly available data for 2022-23 (Word Doc, 207KB) Professor Ivison’s base salary for 2024-26 is at a similar level to the Vice-Chancellors of Edinburgh and Birmingham in 2022-23 and his total remuneration package is similar to the Vice-Chancellors at Newcastle, Glasgow, and Bristol for 2022-23.
Gary Buxton
Chair of Remuneration Committee
The University of Manchester
Additional information
Summary of Russell Group total remuneration from highest to lowest (Word Doc, 207KB) – taken from Korn Ferry summary of 2022/3 annual report data
Professor Duncan Ivison – remuneration and contract summary 2024-2026 (Word Doc, 417KB)