UK Vice Chancellor Compensation: Do They Get What They Deserve?

33 Pages Posted: 30 Jan 2020

See all articles by Brian M. Lucey

Brian M. Lucey

Trinity Business School, Trinity College Dublin; University of Sydney Business School; University of Economics Ho Chi Minh City

Andrew Urquhart

ICMA Centre, Henley Business School

Hanxiong Zhang

Sheffield University Management School

Date Written: January 9, 2020

Abstract

The compensation received by UK Vice Chancellors (VCs) has been on an upward trend in re- cent years and attracted a lot of negative media attention. In this paper, we examine whether VC compensation is excessive. Using a panel dataset covering the academic years 2007/2008 to 2016/2017, we develop a model to predict expected VC compensation to determine whether VCs are over- or undercompensated. Our model finds that VCs are not overcompensated regarding their base salary, but some are overcompensated in terms of their benefits and pension contributions. However, there is very little difference in terms of characteristics of over- and undercompensated VCs, indicating that on average, UK VCs receive the compensation they deserve. For robustness purposes, we employ a variety of alternative model specifications and subsamples which all support our findings.

Keywords: Vice Chancellors, Compensation, Pay Gap, Performance

JEL Classification: G30, J16, J30

Suggested Citation

Lucey, Brian M. and Urquhart, Andrew and Zhang, Hanxiong, UK Vice Chancellor Compensation: Do They Get What They Deserve? (January 9, 2020). Available at SSRN: https://ssrn.com/abstract=3516675 or http://dx.doi.org/10.2139/ssrn.3516675

Brian M. Lucey

Trinity Business School, Trinity College Dublin ( email )

The Sutherland Centre, Level 6, Arts Building
Dublin 2
Ireland
+353 1 608 1552 (Phone)
+353 1 679 9503 (Fax)

University of Sydney Business School ( email )

Cnr. of Codrington and Rose Streets
Sydney, NSW 2006
Australia

University of Economics Ho Chi Minh City ( email )

59C Nguyen D├Čnh Chieu
6th Ward, District 3
Ho Chi Minh City, Ho Chi Minh 70000
Vietnam

Andrew Urquhart (Contact Author)

ICMA Centre, Henley Business School ( email )

University of Reading
Whiteknights
Reading, Berkshire RG6 6BA
United Kingdom

Hanxiong Zhang

Sheffield University Management School ( email )

University of Sheffield
Conduit Road
Sheffield, S10 1FL
United Kingdom

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