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<p>Universities are autonomous institutions and they are responsible for setting the
pay of their staff, including vice-chancellors. However, students and taxpayers all
contribute to our higher education system and rightly expect value for money. We want
to see senior staff pay in universities that is fair and justifiable. The process
for setting pay must be transparent.</p><p>The Office for Students (OfS) requires
universities to publish full details in their financial statements of the total remuneration
package of their vice chancellor, including bonuses, pension contributions, and other
taxable benefits. Universities must also publish a justification for this remuneration
package, and the pay multiple of the vice chancellor's remuneration compared with
that of all other employees.</p><p>My right hon. Friend, the Secretary of State for
Education’s February 2019 strategic guidance letter to the OfS reiterated that ‘high
pay must be justified by high performance’. It further stated that ‘Where issues with
senior staff pay lead to concerns over governance, the OfS should consider carrying
out independent reviews of the adequacy and effectiveness of management and governance
at providers and to require improvements, where necessary, to ensure that these arrangements
are fit for purpose’.</p>
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