Skip to main contentCambridge University Reporter

No 6573

Wednesday 22 January 2020

Vol cl No 15

pp. 192–292

Annual remuneration report

The Council publishes the following report on remuneration to provide assurance that the Council, acting through its Remuneration Committee, has discharged its responsibilities effectively. The report also provides a further breakdown of remuneration data, which can be read in parallel with the remuneration data provided in the Notes to the Accounts section of the Reports and Financial Statements for the year ended 31 July 2019 (at p. 246 above).

Annual remuneration report, 2018–19

Executive summary

A. Introduction

This annual report has been produced by the University Remuneration Committee for the University Council primarily in fulfilment of the Committee’s requirement to be transparent and accountable in reporting on the remuneration of those staff which fall under its purview as defined below.

B. Post-holders who fall within the remit of the Remuneration Committee

The following staff fall within the Committee’s remit:

the Vice-Chancellor (VC)
the Vice-Chancellor-Elect (when appropriate)
the Pro-Vice-Chancellors (PVCs)
the Registrary
the Chief Financial Officer
the Executive Director of Development and Alumni Relations (CUDAR)
the Director of University Information Services (UIS)

C. Policy on remuneration for post holders within the remit of the Remuneration Committee

The policy is contained within the Remuneration Committee’s Terms of Reference. Factors in considering remuneration proposals for senior staff can be found in section B.4. of the Remuneration report (p. 283).

D. Choice of comparator institutions / organisations

The Committee takes account of benchmarking data for similar roles within its remit from UCEA, Russell Group Survey, search firms and, where available and relevant, international salary surveys.

E. Policy on income derived from external activities

The University does not have a specific policy on income derived from private consultancy. However, staff have a contractual requirement with respect to any external activities they undertake which states:

The University does not expect to be informed about remuneration from private work and consultancy. Such work, however, must not interfere with the performance of the duties of your office or post. If you are in any doubt about this you should consult your head of institution. If you undertake any work in a private capacity or act as a consultant, you should be clear that you undertake such work at your own risk, and that the University must not be involved in any such arrangements. University letterheads or other facilities must not be used.

F. Vice-Chancellor’s remuneration

See Section C.1. of the Remuneration report (p. 284) for a detailed account of the Vice-Chancellor’s remuneration.

G. Senior post holders’ remuneration

For Pro-Vice-Chancellors, whose salary is calculated via a formula:

the Committee recommends to the Council approval of Market Pay awards on appointment, and any subsequent change to such Market Payments. Together with the appointee’s prior academic salary, this will determine the remuneration of the PVC role;

separate from any increase to Market Pay awards, the base component of a Pro-Vice-Chancellor’s salary will rise in line with the agreed increase in the single pay spine.

Over the course of the year, for retention purposes, the remuneration of the PVCs was adjusted to bring it closer to the Higher Education sector benchmark for similar positions at comparable Higher Education Institutions. This was approved by the Council.

For the Chief Financial Officer, the Registrary, the Executive Director of CUDAR and the Director of the UIS, the Committee:

recommends to the Council a salary range within which an initial appointment can be made;

informs the Council of the actual salary at which the candidate has been appointed within that range;

informs the Council of the range of their salary increases in an anonymised form compared to any increase in academic or other salaries.1

Total remuneration (basic salary and any additional payments (namely directorships, PVC supplements, market pay, but excluding pension arrangements)) of senior post-holders who fall under the purview of Remuneration Committee (excluding the VC, see F. above) shown in £5k bands are below:

Range

Number

£145,000–£149,999

2

£150,000–£154,999

£155,000–£159,999

1

£160,000–£164,999

£165,000–£169,999

1

£170,000–£174,999

£175,000–£179,999

£180,000–£184,999

1

£185,000–£189,999

£190,000–£194,999

1

£195,000–£199,000

£200,000–£204,999

1

£205,000–£209,999

£210,000–£214,999

£215,000–£219,999

£220,000–£224,999

1

£330,000–£334,999

1

Basic salaries (only) of senior post holders are included within Appendix 2 of the Remuneration report (p. 291) (i.e., staff earning > £100k shown in £5k bands).

The Committee also approved remuneration arrangements for the Executive Team of the West and North West Cambridge Estate Board and for members of the Investment Office. It also oversaw and contributed to the design of the newly appointed Chief Investment Officer role .

The Committee commissioned and approved a Policy on Payments to External Members of University Bodies and Committees.2

Market payments are made for recruitment, retention, promotion or renewal purposes where a case for market pay exceeds 10% of the lowest salary point of the grade 12 band.

The annual summary of Market Pay cases approved over the previous twelve months by the Remuneration Committee appears below.

Summary of Market Pay cases approved by the Remuneration Committee in 2018–19

Request type

Staff type

Grade 12 band

Recruitment/retention successful

School / institution

Min%

Max%

Pre-emptive

Recruitment

Retention

Academic

Academic-related

1

2

3

M

W

U

M

W

U

M

Yes

No

U

Other institutions (Council)

20.69

69.54

1

3

4

2

2

4

Other institutions (General Board)

20.20

20.20

1

1

1

1

School of Technology

10.00

117.07

3

5

6

2

4

1

3

8

School of the Biological Sciences

25.68

25.68

1

1

1

1

School of the Humanities and Social Sciences

13.76

104.89

4

3

1

8

1

2

1

3

1

3

1

4

School of the Physical Sciences

7.80

26.60

2

3

5

3

1

1

4

1

Grand total

7.80

117.07

6

9

12

20

7

9

2

1

3

2

4

6

20

1

6

Notes

Min% and Max % represent the percentage of Market Pay value to bottom of grade or band.
M = Men; W = Women; U = Unknown.


Remuneration report

This report is based on current guidance provided by both the Committee of University Chairs (CUC) and the Office for Students (OfS). The report is in three parts:

A.a description of the University’s Remuneration Committee;

B.the general principles behind the University’s overall approach to remuneration for all staff; and

C. details about the required pay disclosures set out in the University’s Reports and Financial Statements for the year ended 31 July 2019 (p. 210 at p. 246).

A. The Remuneration Committee

The University’s Remuneration Committee operates under delegated authority from the University’s Council and is responsible, inter alia, for setting the Vice-Chancellor’s pay, reviewing his or her performance and advising on senior post-holders’3 remuneration. The Committee meets about ten times a year and is comprised of a Chair who is an external member of the Council and four other members. Of these four members, at least two will be members of the Council, and at least two will be completely external to the University or external to the Academic University (but may be members of a Cambridge College or other associated organisation). The role of the Committee continues to evolve in response to emergence of best-practice guidance from a range of bodies.

1. Terms of reference

The current terms of reference (ToRs)4 for the Remuneration Committee were agreed by the Council in December 2018. These ToRs were considered following the publication of the CUC Remuneration Code for Higher Education, the Office for Students (OfS) Regulatory framework for Higher Education, and revisions to the Financial Reporting Council Corporate Governance Code.

The Committee is committed to further review of its ToRs.

The emphasis of the Committee’s work is to set the policy for senior reward so that it supports the objectives of the institution, facilitates recruitment and retention, ensures fairness, equity and transparency and to advise Council on senior pay matters.

2. Membership of the Committee

Membership is set out in the ToRs. The members for the period in question were as follows:

Name

Position

Appointing Body

Ms Sara Weller (Chair)

External, Member of the Council

The Council

Ms Gaenor Bagley

External

The Council

Professor Fiona Karet

Professor of Nephrology, Director of Organisational Affairs at the School of Clinical Medicine, Vice‑Master of Darwin College, Member of the Council

The Council

Professor Michael Proctor

External, Provost of King’s College, Member of the Council

The Council

Ms Jocelyn Wyburd

Director of the Language Centre, Member of the Council

The Council

In attendance:

Ms Emma Rampton

Registrary (Secretary)

ex officio

Professor Eilís Ferran

Pro-Vice-Chancellor for Institutional and International Relations

ex officio

Ms Emma Stone

Director of Human Resources

ex officio

3. Meetings

The Committee meets monthly. The dates of meetings held during the 2018–19 academic year are set out below:

24 September 2018

21 January 2019

20 May 2019

15 October 2018

18 February 2019

17 June 2019

19 November 2018

18 March 2019

15 July 2019

10 December 2018

15 April 2019

A written report of the Committee’s business is submitted to the following Council meeting (usually a month later).

B. General principles behind the University’s overall approach to remuneration

1. Operating environment and markets

The University’s mission is ‘to contribute to society through the pursuit of education, learning, and research at the highest international levels of excellence’. It is proud to be one of the world’s leading academic centres and is committed to attracting the most talented staff and students from the UK and from overseas to further that mission.

Cambridge strives to fulfil its mission by adhering to its core values of freedom of thought and expression, freedom from discrimination, and a commitment to the confederation of the University with its 31 constituent and independent Colleges. The University ranks in the top five in international league tables for the quality of its research. Cambridge can claim 109 Nobel Prize winners.

Undergraduate and postgraduate education, provided in conjunction with the Colleges, is of the highest quality. Students and staff live and work in collegiate communities that are microcosms of the wider University’s comprehensive range of academic subjects and research centres.

The wider University Group includes Cambridge University Press and Cambridge Assessment. Across the Group, the University has an annual income of over £2 billion and employs more than 17,000 staff. Research income, won competitively from the UK Research Councils, the European Union (EU), and major charities and industry, exceeds £590 million per annum and continues to grow.

The Academic University5 has more than 11,283 staff, with a further 5,800 employed by its subsidiaries. Of the Academic University staff, approximately half are employed on academic or research contracts. The University’s people strategy is based on four themes:

to attract and retain the best talent from across the world and give them the best possible start;

to contribute to the personal and professional development of staff as part of a high performance culture and to enable them to contribute fully to the institution, University and society;

to reward, recognise and retain outstanding staff at all levels; and

to foster a thriving community and culture of inclusivity, diversity, health and well-being.

The University has 22,000 students studying in more than 150 Departments, Faculties, and institutions. It is in contact with over 220,000 alumni around the world who are important members of the wider Cambridge family, supporting the University, its values, its success and its fundraising.

The University is financially strong with an Aaa (stable – in the 2018–19 context) rating from Moody’s, a balance sheet of £5.1 billion, and a well-performing endowment fund of £3.5 billion that has, over the past several years, achieved returns above its benchmark. The University faces significant financial challenges in the context of increased international competition, and more than ever will need to employ its resources strategically and effectively. It also operates in a challenging UK environment, facing intense public scrutiny and increased regulation.

During the prolonged period of political uncertainty over the UK’s relationship with the EU, the University has strengthened its global position and support for its strategic partnerships around the world. These include the Cambridge–Africa Programme, which links us to universities in Ghana, Uganda and elsewhere in Africa. In March 2019, the Vice‑Chancellor signed the final agreement to launch a University research centre in Nanjing, China, which will host new projects in engineering and other fields. European partnerships remain centrally important. In the past year, the University has signed new agreements with established partners at the Université Libre de Bruxelles and Sciences Po in Paris, and has joined the U7+ Alliance, a group of global universities working to feed information into the discussions surrounding the G7 summits. It will continue to seek out collaborations with organisations that share its aspirations.

Providing teaching and an education of the highest quality remains central to the University’s purposes. The collegiate University remains committed to admitting the best students regardless of their background and, at undergraduate level, it invests considerable resources both in widening access and financial support. In its Access and Participation Plan, agreed with the Office for Students in September 2019, the University committed to taking a quarter of all undergraduates from the least represented groups in society, rising to a third by 2035. Through the Cambridge Commonwealth, European and International Trust and the Gates Cambridge Trust, among others, significant funds are also available for postgraduate students. Attracting the very best research students from around the world to Cambridge remains a core strategic objective.

Research and teaching are enhanced by the University’s special collections. The University Library, the Fitzwilliam Museum, Kettle’s Yard, the Botanic Garden and the other six museums play a significant role in enriching the educational and research experience of the Cambridge community and public understanding of the work of the University.

In October 2015, the University and the Colleges jointly launched a £2 billion fundraising campaign, of which more than £1.52 billion has now been secured. In February 2019, the campaign secured a £100 million donation from the David and Claudia Harding Foundation, the biggest gift ever made to a university by a British donor. A cadre of professionals in the University and the Colleges work closely together to promote philanthropic fundraising and alumni relations in Cambridge.

2. Fundamental principles guiding decisions related to remuneration of all staff

The University’s approach to setting remuneration for senior staff, and therefore the principles governing the Remuneration Committee’s decisions, are as follows:

the need for the University to operate in a competitive local, national and international market for the most talented staff. Its reward strategy needs to offer sufficiently competitive rates of pay to attract and retain the most talented academic and professional staff to help the institution maintain its leading position in research and teaching. All staff should be rewarded in a way which demonstrates fairness and consistency, paying due attention to addressing the gender pay gap and other areas of potential inequality;

a commitment to appropriately valuing the contribution from academic and professional staff, recognising that different structures of remuneration may be appropriate to the different categories of staff;

a recognition that while pay and benefits are central, non-financial reward mechanisms are also important and should form part of an attractive total remuneration approach;

the principle that remuneration must be affordable and consistent with the charitable status of the University. It is unlawful for a charity to overpay its staff; and

a commitment to transparency about senior remuneration. Decisions are made in a way which is transparent and outcomes are reported to the University Council.

3. Policies and procedures guiding the remuneration of staff

The University has established a number of procedures and policies to guide the remuneration of staff drawing on the principles identified above. These include schemes to reward significant contribution to the University (which for senior academics can also include promotion); and schemes to recognise difficulties in recruitment and retention and where individuals take on responsibilities in addition to their normal duties. Details of these schemes are included in Appendix 1.

4. Factors in considering remuneration proposals for senior staff

At recruitment, the factors taken into account when developing the total remuneration package include:

appropriate remuneration needed to attract and appoint senior staff;

current remuneration;

benchmarked salary data for similar roles from the Universities and Colleges Employers’ Association (UCEA), the Russell Group Survey, and, where available and relevant, international salary surveys;

the extent to which the individual has a demonstrable record of achievement (and how this could transfer to the role in question) in areas identified as being of strategic importance to the institution;

the extent to which the individual has demonstrated staff development and strategic leadership in their area(s); and

for senior clinical academic roles, the appointment package will be in line with their existing NHS national pay and conditions, including any Clinical Excellence Awards in payment, together with payment for any additional clinical activity.

For cases of retention, the factors set out in the University’s procedures include:

a managerial business case and evidence, including the impact that would or would be likely to occur if the individual was not retained and why they would be difficult to replace;

evidence of exceptional contribution and achievements for which the individual is responsible and which demonstrate the furtherance of the University’s mission;

implications of the loss of the employee to the organisation, including organisational performance, internal relativities, gender pay position, reputation, student and teaching impact, and research impact;

evidence of any offer of alternative employment or approach from another university/organisation; and

salary data including external and internal relativities and benchmarks.

The University draws data from many sources to support senior staff remuneration decisions. These include:

annual participation in the UCEA, Russell Group and CUC salary surveys and provision of an analysis of these data to the Remuneration Committee to show the University’s position in the market. These data are used in the consideration of the Vice-Chancellor’s remuneration and during discussions about the recruitment or retention of Professorial and senior staff; and

internal comparisons of pay for similar senior academic and professional services roles, and a gender pay analysis.

5. Job evaluation, pay awards and pension schemes

For most roles, the University uses the Higher Education Role Analysis (HERA) job evaluation method. This does not apply to the four Professorial bands (in grade 12, the highest grade), where movement through the bands is based on meeting the criteria for each of the Professorial levels under the headings of research, teaching, practice and leadership.

The University is a member of UCEA and participates in the national pay negotiations. The University’s policy is to implement the outcomes of the pay negotiations across all staff, with the exception of clinical academic staff where the University applies the NHS pay uplifts once agreed nationally.

The University operates the following pension schemes:

Universities Superannuation Scheme (USS);

Cambridge University Assistants’ Contributory Pension Scheme (CPS);

National Health Service Pension Scheme (NHSPS); and

Cambridge Colleges’ Federated Pension Scheme (CCFPS).

6. Performance-related pay

The Academic University does not operate a specific performance-related pay scheme, other than the NHS scheme for some senior clinicians. Grade 12 post-holders can progress through the Professorial Pay Review Scheme (for Professorial roles) or the Contribution Reward Scheme (for academic-related roles).

The staff of the Investment Office (managing an endowment of over £3 billion) and the West and North West Cambridge Development Office (responsible for the delivery of the mixed-use housing, retail, and research facility at North West and West Cambridge) have bonus arrangements which are assessed by their respective remuneration committees and reported to the University’s Remuneration Committee.

Staff at Cambridge Assessment and Cambridge University Press also have bonus arrangements which are assessed by their own remuneration committees and reported to their respective Boards.

7. Expenses policy

The University’s expenses policy is included in the Financial Procedures Manual.6 It applies to all University staff.

C. Senior pay disclosures

1. The Vice-Chancellor

(a) Pay and remuneration

With income of over £2 billion, more than 16,000 staff across the Group and a diverse range of academic and non-academic strands, the University is a complex organisation. It is one of the largest universities in the UK, with significant academic standing and global presence, regularly appearing in the top five of global university rankings.

Consequently, when considering the remuneration for the Vice-Chancellor, the Remuneration Committee undertakes detailed analysis of comparable salaries in the UK, North America and Australia. The Remuneration Committee considers the range within which a salary can be offered and proposes a package to the Council once the candidate is identified.

The last recruitment exercise for Vice-Chancellor was undertaken in 2016–17. The Vice-Chancellor is appointed for a fixed term of seven years.

The Vice-Chancellor’s performance is assessed annually against objectives agreed by the Council. The Vice‑Chancellor’s remuneration is reviewed at the end of the second, fourth and sixth years of his or her term of office. Based on that assessment, the Council determines any salary increase, having been advised by the Remuneration Committee and taking due regard of salary growth across the wider University. It should be noted that whilst a pay review was due during 2018–19, the Vice-Chancellor elected not to receive any increase in pay other than the national pay award.

(i) Details of the remuneration of the Vice-Chancellor

The remuneration of the current Vice-Chancellor is detailed in the table below and relates to the period from 1 August 2018 to 31 July 2019. The comparative year relates to the ten-month period from 1 October 2017, when the Vice‑Chancellor took up office, to 31 July 2018 and also includes salary for an additional month (September 2017) as Vice‑Chancellor‑Elect.

Emoluments of the Vice-Chancellor

Year ended

31 July 2019

(£’000)

Period ended (11 months)

31 July 2018

(£’000)

Salary for the period

372

335

Deductions to reflect salary sacrifice arrangements

(9)

(8)

Net salary paid in the year

363

327

Taxable benefits in kind

31

29

Non-taxable benefits in kind

19

16

Total excluding employer pension contributions

413

372

Employer pension contributions

17

19

Payments made in lieu of pension

45

37

Total

475

428

 

The salary for the period is the basic contractual salary before adjusting for salary sacrifice arrangements under which, in common with other employees, the Vice-Chancellor sacrificed an amount of pay relating to enhanced opt-out benefits for Death in Service and Ill Health. The employer pension contributions reflect both the employer payments to the Universities Superannuation Scheme and the Vice-Chancellor’s contribution of £9k (2018: £8k).

Taxable benefits in kind include private healthcare of £6,730 (2018: £1,902),7 accommodation-related costs (heating, lighting and maintenance) of £4,401 (2018: £2,308) and the provision of accommodation of £20,000 (2018: £16,668). The provision of accommodation benefit was treated as non-taxable in the previous year in line with HMRC rules which exempted certain employees from being subject to income tax and national insurance contributions on such a benefit provided certain conditions were met. However, following the recent changes announced by HMRC and effective from 6 April 2019 the exemption can no longer be applied and as such the provision of accommodation benefit has been reclassified to a taxable benefit and the prior year restated. The accommodation benefit has been based on an independent valuation8 using comparable data for market rentals of similar properties in the Cambridge area and has been pro-rated to reflect only the personal use of the property, as opposed to business and entertaining use. There were no tax consultancy services benefits received in the current year (2018: £1,486) or relocation expenses (2018: £5,922).

Non-taxable benefits include personal flight travel of £19,143 (2018: £16,210, including relocation flights).

(b) External appointments – payments from external bodies to the Vice-Chancellor

Income generated from external bodies is set out in the University’s Private Work and Consultancy Policy.9

The Vice-Chancellor is an ex officio member of the International Academic Advisory Panel (IAAP) established by the Government of Singapore. The meetings occur every 2–3 years and the Vice-Chancellor last attended in June 2018. The fee for the Vice-Chancellor’s advisory work is paid directly to the Vice-Chancellor’s Office and used for University purposes.

(c) The pay ratio – Head of Institution against median of all staff

The methodology used in this calculation was provided by UCEA in 2018. Under this formula, pay ratios are calculated as the ratio between the Head of Institution’s (HoI’s) total pay and the median all-staff total salary (sources: HESA, UCEA and Times Higher Education).

During the period from 1 August 2018 to 31 July 2019 the median pay for employees was:

Median basic salary: £33,582 (2018: £32,417), calculated on a full-time equivalent basis of the salaries paid by the University to its staff; and

Median total remuneration (including employers’ pension contribution): £40,285 (2018: £38,833).

The median pay calculation includes over 1,175 agency staff employed on temporary contracts through the University’s Temporary Employment Services (TES).

Based on the above figures, the pay multiples for the Vice‑Chancellor, including prior year comparatives, are as follows:

The Vice-Chancellor’s10 basic salary is 11.1 times (2018: 11.3) the median pay of staff.

The Vice-Chancellor’s basic salary is 6.0 times (2018: 6.0) the median basic salary of academic staff of £61,618 (2018: £60,410) (including clinical staff).

The Vice-Chancellor’s total remuneration is 12.0 times (2018: 12.4) the median total remuneration of staff.

The Vice-Chancellor’s total remuneration is 6.5 times (2018: 6.7) the £74,167 (2018: £72,005) median total remuneration of academic staff (including clinical staff).

Of the four pay multiples reported, three have reduced, while the fourth has remained static. Comparative data for the Sector are not yet available, but the Office for Students has published data for the year 2017–18.11 These data show that the 2017–18 pay ratio for the Vice-Chancellor against staff ranked fifth on basic pay and fourth on total pay. The data also show that the University of Cambridge was the second largest provider in terms of total income. The two graphs below illustrate these data.

2. Salaries over £100,000

(a) Overview of the University Group

The table below shows changes in basic salaries over £100,000 between 2018–19 and 2017–18 in the University Group.12

TOTAL GROUP

Clinical Academic

Non-clinical Academic and other

Total number

2019

2018

2019

2018

2019

2018

£100,001 – £150,000

58

47

254

229

312

276

£150,001 – £200,000

1

0

24

26

25

26

£200,001 – £250,000

0

0

5

7

5

7

over £250,000

0

0

5

5

5

5

59

47

288

267

347

314

(b) Detailed breakdown within the Group

(i) Academic University5

Overview

Band

2019

No change

Moved up from a lower band

Moved down from a higher band

New employees

2018

A

£100,000 – £150,000

225

170

51

1

3

196

B

£150,001 – £200,000

10

5

3

1

1

11

C

£200,001 – £250,000

3

1

2

0

0

2

D

£250,001+

2

2

0

0

0

3

TOTAL

240

178

56

2

4

212

Note: figures based on Regulatory Advice 9: Accounts Direction (OfS 2018.26) published 19 June 2018.

Movement between bands, both up and down, is common. Promotions and Professorial Pay Reviews are the main reason for upward movements. Upward movement can also occur due to the annual pay increase (2% in 2018). Total remuneration falls when ending a Head of Department role, or ending payments for additional duties.

By band, the main reasons for change are:

Band A: annual pay increase (20), Professorial Pay Reviews, promotions, additional responsibility payments;

Band B: additional responsibility payments;

Band C: annual pay increases; and

Band D: no change.

Breakdown by staff group

The chart below shows the breakdown of the Academic University between clinical academic and non-clinical academic salaries.

Academic University

Clinical

Non-clinical

Total number

2019

2018

2019

2018

2019

2018

£100,001 – £150,000

58

47

167

149

225

196

£150,001 – £200,000

1

0

9

11

10

11

£200,001 – £250,000

0

0

3

2

3

2

over £250,000

0

0

2

3

2

3

 

59

47

181

165

240

212

Note: figures based on Regulatory Advice 9: Accounts Direction (OfS 2018.26) published 19 June 2018.

(ii) Cambridge University Press and Cambridge Assessment

The following chart gives details for Cambridge University Press and Cambridge Assessment:

Cambridge University Press

Cambridge Assessment

2019

2018

2019

2018

£100,001 – £150,000

53

43

29

31

£150,001 – £200,000

8

7

5

5

£200,001 – £250,000

1

1

1

4

over £250,000

2

2

1

0

 

64

53

36

40

Note: figures based on Regulatory Advice 9: Accounts Direction (OfS 2018.26) published 19 June 2018.

For Cambridge University Press there was an increase of 11 staff in the higher bands. This resulted from pay increases for a number of staff previously just below the threshold.

For Cambridge Assessment there was a decrease of 4 staff in the higher bands.

Trusts and subsidiaries

The following chart gives details for trusts and subsidiaries:

Trusts

Subsidiaries

2019

2018

2019

2018

£100,001 – £150,000

2

2

3

4

£150,001 – £200,000

0

0

2

3

£200,001 – £250,000

0

0

0

0

over £250,000

0

0

0

0

 

2

2

5

7

Note: figures based on Regulatory Advice 9: Accounts Direction (OfS 2018.26) published 19 June 2018.

Subsidiaries include: Cambridge Enterprise, 1 FTE (no change); Judge Business School Executive Education Limited (JBSEEL), 2 FTE (no change); Institute for Manufacturing Education and Consultancy Services (IfM ECS), 2 FTE (no change); the Cambridge Centre for Advanced Research and Education in Singapore (CARES), 0 FTE (2018: 1 FTE); and the PHG Foundation, 0 FTE (2018: 1 FTE).

Trusts include: Cambridge Commonwealth European and International Trust, 1 FTE (no change);the Cambridge Malaysian Education and Development Trust, 0 FTE as de-consolidated from 1 August 2018 (2018: 1 FTE).

(c) Compensation for Loss of Office

Across the Group, a total of 94 payments were made in the year to staff for loss of office (settlement agreements). This is an increase in number from 67 in the previous year. Within the Academic University this increase can be accounted for by the planned re-structuring of services in a number of institutions to improve effectiveness. The breakdown is as follows:

Compensation for loss of office

2019

2018

Amount

Amount

Number

£’000

Number

£’000

Academic University

42

726

28

807

Cambridge Assessment

30

831

18

537

Cambridge University Press

19

510

21

775

Subsidiaries*

3

25

 

94

2,092

67

2,119

* Relates to JBSEEL

(d) Like-for-like comparison between 2018–19 and 2017–18 (based on the old definitions)

To show clearly the changes year-on-year if the HEFCE/SORP definitions are used, the 2018–19 data have been reproduced using the HEFCE definitions prior to issue of Regulatory Advice 9: Accounts Direction (OfS 2018.26) on 19 June 2018. The comparison is set out in Appendix 2 for the total Group, shown in £5k and (for some of the old definition) £10k salary bands.

Guidance from the OfS published in June 2018 requires providers to include a number of disclosures including the ‘number of staff with a basic salary of over £100,000 per annum, broken down into bands of £5,000’.

The definition of pay has, therefore, been changed to a more restrictive definition (i.e. basic pay rather than total remuneration) and the banding increments have been reduced from £10,000 to £5,000.

The OfS guidance suggests banding disclosures for the financial periods between 1 August 2017 and 31 July 2019 should comply with the following definition:

Providers should calculate the basic salary prior to any adjustment for salary sacrifice. For these reporting purposes, basic salary should exclude bonus payments, market supplements, allowances, and clinical excellence awards and other such payments.

This definition is a significant change to that used prior to 1 August 2017 when remuneration was defined as total emoluments received in the year (including taxable benefits in kind, but excluding employer pension costs except to the extent that these result from the sacrifice of an element of pay).

Some of the key pay elements included/excluded in the pay definitions are:

Pay element

Year end: 2017–18

(OfS definition)

Year end: 2016–17

(HEFCE/SORP definition)

Basic salary

Market pay supplements / retention payments / enhancements

Not included

Bonus

Not included

Local and National Clinical Excellence Award payments

Not included

Pension cash supplements

Not included

n/a – policy not in place in 2016–17

Additional programmed activity payments

(Clinical academic staff only)

Not included

Wellcome Trust Merit Awards

Not included

Both the 2017–18 definitions and the 2016–17 definitions have defined the pay bandings to be before (i.e gross of) salary sacrifice arrangements, and excluding employer pension contributions.

The result of the new definitions has been to reduce the number of staff in the higher pay bandings as certain additional payments such as Clinical Excellence Awards, bonus payments and market payments are excluded and some are significant.

Footnotes

Appendix 1

Reward and progression schemes

The University operates a number of contribution reward and progression schemes, many of which are currently under review. Details of the current schemes can be found on the University website https://www.hr.admin.cam.ac.uk/pay-benefits/reward-schemes. These include:

Professorial Pay Review

Senior Academic Promotions Scheme (to be replaced in 2020 by a new Academic Promotions Scheme)

Contribution Increment Scheme for Researchers

Contribution Increment Scheme for Grade 12 Academic-Related Staff

Contribution Reward Scheme for academic-related and assistant staff grades 1–11

Additional Responsibility Payments

Market Pay policy

Advanced Contribution Supplements

Recruitment incentive schemes

The University’s promotion processes apply to academic staff only. For all other categories of staff, promotion occurs through the advertising of vacancies and an application and selection process including interviews.

For staff in grades 11, 12 and those above the scale, there is no automatic incremental progression, only the annual nationally negotiated uplift in the salary scale points. For staff in grades up to grade 10, annual automatic incremental progression applies.

Professorial Pay Review

The current Professorial Pay Review (PPR) process involves Professors applying, should they wish to, every two years. The process involves the applicant supplying evidence of achievement against the band descriptors, of which there are four bands. The determination of awards is made by the Vice-Chancellor’s Advisory Committee on Professorial Pay. This Committee receives recommendations for awards in bands 1 and 2 from a School-level committee and determines progression to bands 3 and 4.

Senior Academic Promotions Scheme

The Senior Academic Promotions Scheme allows eligible academic staff to apply for promotion to the offices of University Senior Lecturer, Reader and Professor.

Contribution Increment Scheme for Researchers

This termly scheme allows Heads of Institution to reward research staff on the basis of outstandingly good work by the member of staff in comparison with others of the same grade and for which some additional recompense is appropriate; or, where a recruitment incentive payment cannot be awarded, on the basis of the need to retain the specialist skills possessed by a particular member of staff who would otherwise be likely to seek a more highly paid appointment elsewhere.

Contribution Increment Scheme for Grade 12 Academic-Related Staff

The University operates a biennial contribution reward scheme for academic-related grade 12 post-holders. To be eligible for consideration, individuals must have been in post and performing their duties at their current grade for at least two years prior to the effective date of the award. Increments are awarded for sustained and ongoing contribution and there must be some indication that the cost is justified by the benefit bought to the University over the longer term.

Cases are considered by the Registrary, relevant Pro-Vice-Chancellor, or Chair of School (as appropriate) who will put forward recommendations to the Vice-Chancellor’s Advisory Committee on Supplementary Payments for Non-Academic Officers in the Professorial Grade 12.

Contribution Reward Scheme for Academic-Related and Assistant Staff in Grades 1–11

The University operates an annual contribution reward scheme for academic-related and assistant staff in grades 1 to 11. The scheme has two components:

1.Contribution Increments (for sustained / ongoing contribution)
The award of additional increments (in the normal pay range or in the contribution range for the grade) to recognise an individual’s outstanding contribution over and above the normal expectation for the role, over a period of at least a year and in the context of expected continuation at that level.

2.Single Contribution Payments (for one-off / time limited contribution)
The award of one off payments of 3% (individual awards) or 2% (team awards) of salary to recognise an individual’s outstanding contribution, over and above the normal expectation for the role, in the context of a one‑off task or project that is finite in nature.

Additional Responsibility Payments

Additional Responsibility Payments can be made to employees who are taking on additional responsibilities over and above those set out in their job description and at a higher level, with the agreement of their institution. Examples include, if the employee is taking on additional higher graded duties for a percentage of time rather than for their full hours; or for temporary acting-up duties. Additional Responsibility Payments can be paid to academic, academic-related, and assistant staff irrespective of grade or type.

Market Pay

In terms of market pay considerations, the grade of an office or post is first determined prior to advertisement using the Higher Education Role Analysis (HERA) scheme. Where evidence indicates that similar posts outside the University command a higher salary than that determined by role analysis, it may be appropriate to request a Market Pay award in order to secure the recruitment or retention of an individual. Market Pay is aimed at assistant and academic-related posts where a particular specialist skill exists, but is also used to recruit or retain academic staff where there are particular pay pressures in the discipline.

Advanced Contribution Supplement

In view of the difficulties experienced in defining the ‘market’ in relation to academic posts, where justified, an Advanced Contribution Supplement (ACS) may be awarded as the primary means of supplementing the salary of an academic member of staff for retention or recruitment purposes. An ACS is awarded in the expectation that an individual will reach a certain level of achievement (normally no more than five years ahead).

Contribution reward and progression schemes apply to all employees on the single salary scale.

Recruitment Incentive schemes

Recruitment incentive payments. These are one-off, taxable, ex gratia payments that do not form part of the employee’s salary. Payments can only be made to individuals taking up their first appointment at the University. The award of a payment is conditional upon the employee completing at least three years of service; repayments are required if the employee leaves before that time is up. All requests for recruitment incentive payments must be considered by the Head of the relevant School, and by the Registrary in the case of Council institutions.

There are a number of other recruitment incentives available to staff, including:

the rental deposit loan scheme, which provides an interest free loan of up to £3,000. This can be used for some of the costs associated with private rental accommodation, such as initial deposit, first month’s rent and other fees;

the shared equity scheme, which is available to new permanent members of staff (grade 7 and above) and holders of certain fellowships to help with the purchase of living accommodation if they have to relocate to take up their appointment. Under the scheme, the University may make a contribution towards the capital cost of purchasing a property close to, or within Cambridge, and would hold a share of the equity in proportion to its capital contribution;

the visa loan scheme. The University recognises that UK immigration fees present a considerable burden for non‑EEA staff, particularly members of the postdoctoral community who may struggle to meet these costs for themselves and their families. The scheme offers an interest-free loan for prospective staff and their dependants, up to a certain value, which staff members can use towards meeting the costs of these visas; and

relocation expenses. This scheme provides financial assistance of up to £8,000 with relocation costs for moves within the UK and from overseas. The scheme is open to all newly appointed centrally funded staff.

 

Appendix 2

Changes to reporting of salaries over £100,000

(N.B. New OfS definitions are for basic salaries only, i.e. excluding any additional payments such as market pay and pension contributions.)

Based on new OfS definitions

Based on old definition

TOTAL GROUP

TOTAL GROUP

Clinical

Non-clinical

Total number

Clinical

Non-clinical

Total number

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

£100,001–£105,000

28

26

76

63

104

89

13

15

79

107

92

122

£105,001–£110,000

9

4

33

44

42

48

6

49

55

£110,001–£115,000

7

8

32

25

39

33

9

23

46

74

55

97

£115,001–£120,000

7

5

19

25

26

30

13

35

48

£120,001–£125,000

1

2

25

20

26

22

12

13

33

43

45

56

£125,001–£130,000

1

0

15

11

16

11

3

21

24

£130,001–£135,000

3

1

14

18

17

19

6

11

20

42

26

53

£135,001–£140,000

0

0

15

7

15

7

4

23

27

£140,001–£145,000

2

1

15

7

17

8

5

7

11

21

16

28

£145,001–£150,000

0

0

10

9

10

9

3

12

15

£150,001–£155,000

0

0

7

9

7

9

13

13

7

15

20

28

£155,001–£160,000

0

0

2

1

2

1

4

9

13

£160,001–£165,000

0

0

2

5

2

5

4

11

8

16

12

27

£165,001–£170,000

0

0

2

1

2

1

3

6

9

£170,001–£175,000

0

0

1

3

1

3

1

9

6

11

7

20

£175,001–£180,000

0

0

2

2

2

2

6

5

11

£180,001–£185,000

0

0

4

1

4

1

6

3

9

6

15

9

£185,001–£190,000

0

0

1

1

1

1

3

6

9

£190,001–£195,000

1

0

2

2

3

2

1

2

7

7

8

9

£195,001–£200,000

0

0

1

1

1

1

1

4

5

£200,001–£205,000

0

0

2

2

2

2

1

5

3

6

4

11

£205,001–£210,000

0

0

0

0

0

0

2

4

6

£210,001–£215,000

0

0

0

0

0

0

5

3

1

10

6

13

£215,001–£220,000

0

0

1

1

1

1

0

5

5

£220,001–£225,000

0

0

0

0

0

0

0

2

3

4

3

6

£225,001–£230,000

0

0

0

1

0

1

2

3

5

£230,001–£235,000

0

0

0

0

0

0

0

1

3

2

3

3

£235,001–£240,000

0

0

0

1

0

1

2

3

5

£240,001–£245,000

0

0

2

1

2

1

0

0

2

3

2

3

£245,001–£250,000

0

0

0

1

0

1

0

1

1

£250,001–£255,000

0

0

0

1

0

1

0

0

0

3

0

3

£255,001–£260,000

0

0

1

0

1

0

0

1

1

£260,001–£265,000

0

0

0

0

0

0

0

1

1

1

1

2

£265,001–£270,000

0

0

0

0

0

0

0

0

0

£280,001–£285,000

0

0

0

0

0

0

0

1

0

0

0

1

£285,001–£290,000

0

0

0

0

0

0

1

0

1

£290,001–£295,000

0

0

0

0

0

0

0

0

1

2

1

2

£295,001–£300,000

0

0

1

0

1

0

0

1

0

£300,001–£305,000

0

0

0

0

0

0

0

0

0

1

0

1

£305,001–£310,000

0

0

0

0

0

0

0

0

0

£320,001–£325,000

0

0

0

0

0

0

0

0

0

3

0

3

£325,001–£330,000

0

0

0

1

0

1

0

0

0

£330,001–£335,000

0

0

1

2

1

2

0

0

0

0

0

0

£335,001–£340,000

0

0

0

0

0

0

0

2

0

£340,001–£345,000

0

0

0

0

0

0

0

0

0

0

0

0

£345,001–£350,000

0

0

0

0

0

0

0

1

0

£350,001–£355,000

0

0

0

0

0

0

0

0

0

1

0

1

£355,001–£360,000

0

0

0

0

0

0

0

1

0

£360,001–£365,000

0

0

0

0

0

0

0

0

0

1

0

1

£365,001–£370,000

0

0

0

1

0

1

0

0

0

£370,001–£375,000

0

0

0

0

0

0

0

0

2

0

2

0

£375,001–£380,000

0

0

1

0

1

0

0

0

0

£380,001–£385,001

0

0

1

0

1

0

0

0

0

0

0

0

£385,001–£390,000

0

0

0

0

0

0

0

0

0

£390,001–£395,000

0

0

0

0

0

0

0

0

1

1

1

1

£395,001–£400,000

0

0

0

0

0

0

0

0

0

£410,001–£415,000

0

0

0

0

0

0

0

0

1

0

1

0

£415,001–£420,000

0

0

0

0

0

0

0

0

0

£440,001–£445,000

0

0

0

0

0

0

0

0

0

1

0

1

£445,001–£450,000

0

0

0

0

0

0

0

0

0

£450,001–£455,000

0

0

0

0

0

0

0

0

0

1

0

1

£455,001–£460,000

0

0

0

0

0

0

0

0

0

£460,001–£465,000

0

0

0

0

0

0

0

0

1

0

1

0

£465,001–£470,000

0

0

0

0

0

0

0

0

0

£490,001–£495,000

0

0

0

0

0

0

0

0

0

1

0

1

£495,001–£500,000

0

0

0

0

0

0

0

0

0

£760,001–£765,000

0

0

0

0

0

0

0

0

0

1

0

1

£765,001–£770,000

0

0

0

0

0

0

0

59

47

288

267

347

314

129

120

437

384

566

504