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Row Over Hike In University Vice-Chancellors' Pay

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http://www.telegraph.co.uk/education/educationnews/8274663/Row-over-hike-in-university-vice-chancellors-pay.html

More than 950 university staff, including all vice-chancellors, were paid more than the Prime Minister – an eight per cent increase on the year before.

One senior administrator at Oxford was given a salary of almost £600,000, thought to be the highest-paid university post in the country.

Last night, the disclosure prompted claims that universities were showing an “arrogant disregard” for public opinion.

It comes just weeks after ministers backed plans to triple the cap on student tuition fees from just over £3,000 to £9,000 a year, sparking riots in Westminster and prompting fears that some teenagers will be priced out of higher education.

The move also comes despite the biggest cuts to university budgets in a generation.

......

It emerged that three-quarters of university heads saw pay packages, including salary, pensions and other benefits, increase during the year to August 2010.

Eleven vice-chancellors saw their total pay rise by more than 10 per cent, including the heads of Oxford, Birmingham and Plymouth.

Executive salaries did fall at a handful of institutions, however, including University College London, whose vice-chancellor, Malcolm Grant, took a 10 per cent cut.

The increased pay packets come despite the Government’s call last May for vice-chancellors to apply “restraint to all aspects of pay and bonuses”.

Vince Cable, the Business Secretary, told The Daily Telegraph at the time that university leaders needed to show “realism and self-sacrifice” and that their pay bore “no relation to the underlying economics of the country”.

Yet the average pay packet was £254,000, more than five times the average academic salary of almost £47,000.

David Eastwood, the Birmingham vice-chancellor, was paid £392,000 last year, including pension contributions – a rise of 11 per cent on the combined pay of Prof Eastwood and his predecessor the year before.

Last year, the academic sat on an expert panel, alongside Lord Browne, the former BP boss, that recommended a sharp increase in tuition fees.

Of those universities publishing accounts so far, his pay package was larger than any other vice-chancellor.

The university said Prof Eastwood was the head of a “complex and successful organisation” contributing more than £780m to the local region, adding: “His remuneration needs to match his challenging and wide-ranging responsibilities and reflect the social and economic contribution that the university makes locally, nationally and internationally."

Figures show Andrew Hamilton, Oxford’s vice-chancellor, enjoys an annual package worth £382,000 in salary, pensions and other benefits – a 17 per cent rise on his predecessor. He was paid a slightly lower figure last year as he joined two months into the financial year.

Can anyone tell me how the University of Birmingham has contributed £780m to the local economy, are they factoring in students coming to live, taking on debt to fund paying rent and assuming this is a sustainable contribution? When the students don't come what then? Or is the University of Birmingham at the forefront of new engineering techniques that local companies are using generating huge returns.

So 950 people generating massive returns to warrant pay over £142,500?

The elites are busy lining their own pockets and sod everyone else.

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At my old university the VC used university money to buy a very grand official residence.

Of course it was *necessary* for all sorts of important functions and entertaining (also on the university budget no doubt despite little relevance to the academic life of the institution). And it was also an *investment* you know.

I bet she didn't have to pay rent on it! So it's not just official salaries that were inflating, but perks too.

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http://www.telegraph.co.uk/education/educationnews/8274663/Row-over-hike-in-university-vice-chancellors-pay.html

Can anyone tell me how the University of Birmingham has contributed £780m to the local economy, are they factoring in students coming to live, taking on debt to fund paying rent and assuming this is a sustainable contribution? When the students don't come what then? Or is the University of Birmingham at the forefront of new engineering techniques that local companies are using generating huge returns.

So 950 people generating massive returns to warrant pay over £142,500?

The elites are busy lining their own pockets and sod everyone else.

I think this is the best summary of present day reality.

There is an increasingly higher level of injustice surfacing and the callous disregard for those who are not among the elite is fostering frustration, anger and resentment. It will get MUCH worse in a few months time when the jobs are shed while the elites take ever larger salaries and bonuses.

This is England when the chips are going down. It has never been any different and it is the reason my parents buggered off when I was very young. I came back thinking it had changed but it hasn't. I think I will sod off back to the US where I can buy a nice gaff for one third of the price and use the surplus to buy medical insurance!

Kit--I have had enough. :(

Edited by Realistbear

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The elites are busy lining their own pockets and sod everyone else.

Nobody wants to be in the have-nots camp when they can be in the haves camp. It matters not who you tread on to get there either.

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http://www.oregonlive.com/education/index.ssf/2010/01/oregon_university_presidents_t.html

Oregon university presidents take pay cuts
Published: Saturday, January 23, 2010, 8:15 PM
The chancellor and presidents at all seven campuses of the Oregon University System agreed to freeze their salaries at July 2008 levels. They also took a voluntary 4.6 percent salary reduction from March through June 2009 and have kept their salaries at that level for this school year, which ends June 30.
"We have been fortunate in that I don't think salary has been a handicap in hiring the good people we've hired in the last couple of years" to lead Oregon universities, said Paul Kelly, president of the State Board of Higher Education.
Elsewhere, pay for university presidents continued to climb in 2008-09, though not as fast as in recent years, according to a survey of 185 public-university chief executives by The Chronicle of Higher Education. Base salaries stopped growing for a third of the top leaders and total compensation declined for 10 percent of those, the Chronicle reported.
The median compensation for college presidents rose by 2.3 percent to $436,111.

Median $436,111 = £272,569.

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This is what happens when the government allows house prices to soar.

Each part of society in a position to take a larger slice of other people's money starts doing it.

idont believe its anything to do with house prices, they are a sideproduct, it is what always happens during credit expansion, disparity widens, the debt/leverage/credits been expanding along a bog standard exponential curve since the 80s and likewise so has wealth disparity and wages, its credit , not houses specifically, the same happened in the 30s, the 1860s and likely 1730s which werent about houseprices, just credit/debtleverage, the disparity then collapses with the collapse of credit, this time is only slightly altered as the govt (a so colled labour govt, haha) have attempted to put the debts on the wider population for the first time in history, on top of the ones the popn already personally have) rather than allowing the disparity to correct in 02/3 or 07/8, so you just have to wait for the state to default to remove the disparity this time

Edited by Tamara De Lempicka

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At my old university the VC used university money to buy a very grand official residence.

Of course it was *necessary* for all sorts of important functions and entertaining (also on the university budget no doubt despite little relevance to the academic life of the institution). And it was also an *investment* you know.

I bet she didn't have to pay rent on it! So it's not just official salaries that were inflating, but perks too.

Even things like the boss getting the parking space closest to the door annoys me!

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idont believe its anything to do with house prices, they are a sideproduct, it is what always happens during credit expansion, disparity widens, the debt/leverage/credits been expanding along a bog standard exponential curve since the 80s and likewise so has wealth disparity and wages, its credit , not houses, the same happened in the 30s, the 1860s and likely 1730s which werent about houseprices, just credit leverage

OK then the main cause is credit expansion but that helped feed higher house prices. People now surely don't think "I need to help expand credit" they need larger property or see other people with nicer properties and want one themselves. Then it's how can I screw the system to get one.

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OK then the main cause is credit expansion but that helped feed higher house prices. People now surely don't think "I need to help expand credit" they need larger property or see other people with nicer properties and want one themselves. Then it's how can I screw the system to get one.

It is still just the expansion of credit, , the fake wealth it generates is so relatively quick and most importantly unearned it changes human nature, leads to social fragmentation, fraud, corruption and decadence, its a standard collective human reaction tol unearned wealth, this hubris and selfishness then is washed away by the return of hardship, wealth becomes frowned upon by wider society rather than encouraged to flaunt, you can already see the start of this natural change ovcer the klast few years. Its fundamentally driven by social cycles which are linked to economic cycles, alot of people ridicule the hemline indicator but i think its as guaranteed as the tall building indicator, they are inevitable results of the social/credit/wealth cycle

Edited by Tamara De Lempicka

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It is still just the expansion of credit, , the fake wealth it generates is so relatively quick and most importantly unearned it changes human nature, leads to social fragmentation, fraud, corruption and decadence, its a standard collective human reaction tol unearned wealth, this hubris and selfishness then is washed away by the return of hardship, wealth becomes frowned upon by wider society rather than encouraged to flaunt, you can already see the start of this natural change ovcer the klast few years. Its fundamentally driven by social cycles which are linked to economic cycles, alot of people ridicule the hemline indicator but i think its as guaranteed as the tall building indicator, they are inevitable results of the social/credit/wealth cycle

I agree with what you are saying but surely the largest driver of your "fake wealth" was property?

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I agree with what you are saying but surely the largest driver of your "fake wealth" was property?

this time it was property, but its been other things in previous booms, its basically whatever the bank decides to lend excessively against, property, stocks, railways, canals so the only constant in those booms was excessive lending/credit.

Edited by Tamara De Lempicka

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At my old university the VC used university money to buy a very grand official residence.

Of course it was *necessary* for all sorts of important functions and entertaining (also on the university budget no doubt despite little relevance to the academic life of the institution). And it was also an *investment* you know.

I bet she didn't have to pay rent on it! So it's not just official salaries that were inflating, but perks too.

That was nice of her.

I wonder what the justification of the excess salaries will be when the cuts bite, they have less staff, less students, less income, empty buildings and unserviceable debt.

I bet they'll be seeking to cut all the support staff salaries first and deny that their own pay is excessive.

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this time it was property, but its been other things in previous booms, its basically whatever the bank decides to lend excessively against, property, stocks, railways, canals so the only constant in those booms was excessive lending/credit.

OK.

agree.jpg

post-15752-0-18496500-1295721936_thumb.jpg

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Who the frack approves the budgets in these places?

forget 50% off salary over 25K...these guys need to be brought to reality.

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So 950 people generating massive returns to warrant pay over £142,500?

The elites are busy lining their own pockets and sod everyone else.

Are Universities subject to the freedom of information act?

I would be interested in finding out more details, when I was at University we were speculating just how much those in high places were likely to be getting paid. The pay scales for lecturers were public but it all got a bit murky further up the top of the tree, some of the guesses seemed obscene at the time but looking at this they were probably true.

Edited by lulu

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This is what happens when the government allows house prices to soar.

Each part of society in a position to take a larger slice of other people's money starts doing it.

Same argumnet when bailing out the bankers - heck who hasn't done their job better than them and so deserves to be paid more.

Edited by OnlyMe

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Are students taking out loans to pay this guy that much ? :angry:

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This is England when the chips are going down. It has never been any different and it is the reason my parents buggered off when I was very young. I came back thinking it had changed but it hasn't. I think I will sod off back to the US where I can buy a nice gaff for one third of the price and use the surplus to buy medical insurance!

Kit--I have had enough. :(

I'm amazed it's taken you this long to figure it out! Well your medical insurance will definitely be softened by cheap gasoline. You'll save time too because you'll never have to queue up for long anywhere. I must save about 2 days at Christmas where I live in Seattle. Queues in the supermarkets are only 2 deep tops and you can always buy a turkey on Christmas Eve. The last time I was in England at Christmas I could hardly breath in the supermarket. Housing is so cheap it's actually difficult for me to decide which place to buy. I've been so used to living in tiny sh*tholes that I find American houses too big! I really do have to pinch myself when I convert the house prices back into Sterling. I saw a home this weekend with a closet big enough to be a bedroom. The walk in unfinished attic was even 500 square feet, big enough to be a studio flat. In Britain it would have been made into 5 or 6 bedroom home, as there are 3 bathrooms. In America only 2 people are living there and it's not considered big. Even doing a house up is cheaper and easier. Home Depot and Lowes stores make B&Q and Wickes seem like real amateurs. If you want to build you can build as there are thousands of plots going for a song. I think life in Britain is tough, compared to Seattle anyway. I know that if I'm ever out of work here I will get unemployment insurance of 350 quid a week. In Britain I'd get nothing. Zilch.

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I remember going to a reception or something where there was a buffet meal. One rather plump man helped himself to far more food than was his share, scoffed it all and went back for more. That's what the bosses of banks, other companies, some public authorities and now, it seems, universities too, have been doing - except with money, not food!

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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