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 section of the Reports and Financial Statements for the year ended 31 July 2023 (at Note p. 342 above).

Remuneration report, 2022–23

Introduction

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 two parts:

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

B.details about the required pay disclosures set out in the University’s Reports and Financial Statements for the year ended 31 July 2023 (p. 298 at p. 342).

The general principles behind the University’s overall approach to remuneration for all staff are presented in Annex 1 (p. 399).

A. The Remuneration Committee

The University’s Remuneration Committee operates under delegated authority from the Council and is responsible, inter alia, for setting the Vice-Chancellor’s pay, reviewing the Vice-Chancellor’s performance and advising on senior post-holders’1 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 University2 (but may be members of a Cambridge College or other associated organisation). The role of the Committee continues to evolve in response to the emergence of best-practice guidance from a range of bodies.

It should be noted that the Remuneration Committee only looks at remuneration of the most senior members of the University; general remuneration and HR matters and promotions are the business of the HR Committee.

1. Terms of reference

The current terms of reference (ToRs)3 for the Remuneration Committee were updated in January 2023 and approved by the Council in April 2023.These ToRs were originally developed in line with the CUC Remuneration Code for Higher Education, the Office for Students (OfS) Regulatory Framework for Higher Education in England, and revisions to the Financial Reporting Council Corporate Governance Code. The latest revision has been updated to make the ToR clearer and include the Director of Communications and External Affairs who reports to the Vice‑Chancellor.

The following staff fall within the Committee’s remit:

•the Vice-Chancellor (VC)

•the Vice-Chancellor-Elect / Acting Vice-Chancellor (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)

•the Director of Communications and External Affairs

2. Senior pay

The Committee takes account of benchmarking data for similar roles within its remit from the Universities and Colleges Employers’ Association (UCEA), the Russell Group Survey, search firms, and, where available and relevant, international salary surveys.

3. 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 Gaenor Bagley (Chair)	External, member of the Council	The Council
Dr Neil Churchill	External, Director for Experience, Participation and Equalities at NHS England	The Council
Professor Anthony Davenport	Professor of Cardiovascular Pharmacology and member of the Council	The Council
Professor Pippa Rogerson (from 1 January 2023)	Professor of Private International Law, member of the Council and Master of Gonville and Caius College	The Council
Dr Louise Joy (from 12 June 2023)	College Director of Studies, Tutor and College Associate Professor, a member of the Council	The Council
Dr Andrew Sanchez (until 31 December 2022)	Associate Professor of Social Anthropology and member of the Council	The Council
Professor Dame Madeleine Atkins (until 11 June 2023)	Member of the Council and President of Lucy Cavendish College	The Council
In attendance:
Ms Emma Rampton	Registrary (Secretary)	ex officio
Professor Kamal Munir	Pro-Vice-Chancellor for University Community and Engagement	ex officio
Ms Andrea Hudson	Director of Human Resources	ex officio

4. Meetings

The Remuneration Committee of the Council met nine times during the 2022–23 academic year. The Committee was chaired by Ms Gaenor Bagley, an external member of the Council.

The Remuneration Committee’s minutes are sent to the Council as soon as reasonably possible after each meeting of the Committee.

In line with its terms of reference, the Committee recommended to the Council a set of objectives for the new Vice‑Chancellor for the first fifteen months of her term in office.

As in previous years, the Committee reviewed and, as appropriate, approved new cases and renewals for market payments to Grade 12 staff. In many cases the Committee asked for further information on the rationale for market pay requests, before finally approving them. It also reviewed the impact on the gender and ethnic pay gap of cases requested, and where it was concerned about the pay gap, asked for specific details of actions being taken to reduce the gap. The Committee also approved cases for payments to external members of certain committees. The Committee reviewed and contributed to the University’s Equality Information Report 2022–23.4 The Committee also reviewed the draft report of the Market Pay Working Group, providing advice on those recommendations affecting staff at Grade 12.

The non-conflicted members of the Committee reviewed the proposal approved by the Council in October 2022 for a non-pensionable and non-consolidated exceptional payment to all employees of the academic University to support them with the rising cost of living.

B. Senior pay disclosures

1. The Vice-Chancellor

(a) Pay and remuneration

Details of the remuneration of the Vice-Chancellor

The remuneration of the Vice-Chancellor is detailed in the table below and relates to the year from 1 August 2022 to 31 July 2023, with the comparative relating to the year from 1 August 2021 to 31 July 2022.

The term of office of the Vice-Chancellor who was in post at the beginning of the year ended on 30 September 2022. An Acting Vice-Chancellor was in post from 1 October 2022 to 30 June 2023. The current Vice-Chancellor’s term of office commenced on 1 July 2023. Consistent with the financial statement, the amount below for 2023 relates to the combined position of the three post-holders5 during the year.

Emoluments of the Vice-Chancellor	Total 2023 (£000)	Total 2022 (£000)
Salary for the period	3986	385
Deductions to reflect salary sacrifice arrangements	(14)	(10)
Net salary paid in the year	384	375
Taxable benefits in kind	25	52
Non-taxable benefits in kind	13	22
Total excluding employer pension contributions	422	449
Employer pension contributions	44	31
Payments made in lieu of pension	33	46
Total	499	526

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

The previous Vice-Chancellor, Acting Vice-Chancellor and current Vice-Chancellor did not receive any payments for external appointments during 2022–23.

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

The Vice-Chancellor’s basic salary is 10.3 times (2022: 10.5) the median pay of staff, where the median pay is calculated on a full-time equivalent basis for the salaries paid by the University to its staff. The comparative ratio reflects the full year basic salary equivalent for the Vice-Chancellor.

The Vice-Chancellor’s total remuneration is 10.4 times (2022: 11.9) the median pay of staff, where the median pay is calculated on a full-time equivalent basis for the total remuneration paid by the University to its staff. The comparative ratio reflects the full-year remuneration equivalent for the Vice-Chancellor.

Compared to academic staff alone, the current Vice-Chancellor’s total remuneration is 5.6 times (2022: 6.7) times the median total remuneration of academic staff (including clinical staff).

The median pay calculation includes over 1,223 agency staff employed on temporary contracts through the University’s Temporary Employment Services (TES).

Comparative data for the Sector are not yet available for 2022–23. However, through UCEA, the University has access to similar data for the year 2021–22. The two graphs below illustrate the 2021–22 (UCEA‑sourced) data for both the University of Cambridge (highlighted) and all other UK Higher Education Institutions (HEIs). (Note: income refers to total income from across the University Group.)

Relationship between income and basic pay ratio – University of Cambridge

Source: UCEA

Relationship between income and total remuneration ratio – University of Cambridge

Source: UCEA

The two graphs below are additional graphs for the 2021–22 data and show data for the University of Cambridge (highlighted) and other Russell Group HEIs. (Note: income refers to total income from across the University Group).

Relationship between income and basic pay ratio (Russell Group HEIs)

Source: UCEA

Relationship between income and total pay ratio (Russell Group HEIs)

Source: UCEA

2. Senior postholders’ 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 Pro-Vice-Chancellor 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.

No market payments to these roles were approved during 2022–23.

For the Chief Financial Officer, the Registrary, the Executive Director of Development and Alumni Relations, the Director of Communications and External Affairs 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.

No market payments to these roles were approved during 2022–23.

The total remuneration (basic salary and any additional payments (namely directorships, PVC supplements, market pay, but excluding pension arrangements)) of senior post-holders (at 31 July 2023) who fall under the purview of the Remuneration Committee (excluding the Vice-Chancellor – see B.1. above), shown in £5k bands, are below:

Range	2023 Number	2022 Number
£150,000–£154,999
£155,000–£159,999		1
£160,000–£164,999	1
£165,000–£169,999		1
£170,000–£174,999	1	1
£175,000–£179,999	1
£180,000–£184,999	1	1
£185,000–£189,999	3	1
£190,000–£194,999
£195,000–£199,999		1
£200,000–£204,999
£205,000–£209,999		1
£220,000–£224,999	1
£230,000–£234,999
£235,000–£239,999		1
£250,000–£254,999	1
£335,000–£339,999
£340,000–£345,000		1
£360,001–£364,999	1
Total	10	9

Note: The remuneration of senior post-holders is also included in Appendix 1 (i.e. staff earning > £100k shown in £5k bands).

The movements between the numbers for 2022 and 2023 result from the application of the 2022 national pay award and the first part of the 2023 national pay award that was paid in February 2023. It also now includes the Director of Communications and External Affairs.

3. Payments to external members of University bodies and committees

The Committee applied the Policy on Payments to External Members of University Bodies and Committees7 to approve two payments.

4. Market pay

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 Remuneration Committee’s approval is required.

Market payments are time-limited, requiring them to be reviewed after no more than five years. Such payments are reduced each year by the amount of base pay that is increased as a result of an award made through any of the University’s reward and progression schemes.

The annual report of Grade 12 market pay cases, including submissions approved by the Remuneration Committee in 2022–23 is shown below.

Summary of market pay cases approved by the Remuneration Committee in 2021–22

	Value % Range		Request Type			Staff Type			Grade															Recruitment/Retention Successful?
	Min	Max	Recruitment	Retention	Renewal	Academic	Academic-Related	Non-Clinical Researcher	12			12.1			12.2			12.3			12.4			Yes	No	In Progress	Renewal
									M	W	U	M	W	U	M	W	U	M	W	U	M	W	U
Other Institutions (Council)	5.0%	66.9%	3				3					2		1										2		1
School of Arts and Humanities	26.3%	26.3%	1					1				1												1
School of the Biological Sciences	7.5%	71.1%	4	2	2	7		1				1	3		1	1	1	1						3	1	2	2
School of Clinical Medicine	63.3%	63.3%		1		1			1																	1
School of the Humanities and Social Sciences	18.9%	51.3%	1	1	2	4						1			2					1				2			2
School of the Physical Sciences	9.3%	96.8%	4	6	3	12		1				7			2			1	1		1	1		8	1	1	3
School of Technology	13.7%	150.0%		7	5	7	5					6	3		1			1	1					7			5
Unified Administrative Service	11.1%	55.5%	8				8							2		1	3			2				6	1	1
Grand Total	5.0%	150%	21	17	12	31	16	3	1	0	0	18	6	3	4	4	4	3	2	2	2	1	0	29	3	6	12

Notes

Min % and Max % represent %age of market pay value to bottom of grade or band.
12.1, 12.2, 12.3 and 12.4 are Grade 12, Band 1, Band 2, Band 3 and Band 4 respectively. Grade 12 applies to non-clinical researchers (who are not assigned to a band within Grade 12).
M = Men; W = Women; U = Where the gender is unknown as recruitment is yet to be completed.
‘In progress’ cases represent approved cases where the recruitment or retention outcome is not yet known.
Renewal cases are assumed to have been successful but are recorded separately in the data.

A total of 55 Grade 12 market pay cases were reviewed between 1 October 2022 and 30 September 2023. The outcomes of the market pay cases reviewed were as follows:

•50 cases were approved (at a total cost of £1,577,607) when submitted for the first time;

•five cases were rejected following initial submission, none of which were subsequently approved. Two cases were declined following resubmission.

5. Salaries over £100,000

(a) Overview of the University Group8

The table below shows changes in salaries (basic salary plus market pay, if applicable) over £100,000 between 2022–23 and 2021–22 in the University Group.

	TOTAL GROUP
	Clinical Academic		Non-clinical Academic and other		Total number
	2023	2022	2023	2022	2023	2022
£100,001 – £150,000	176	142	403	374	579	516
£150,001 – £200,000	0	1	89	73	89	74
£200,001 – £250,000	0	0	24	29	24	29
£250,001+	0	0	9	6	9	6
	176	143	525	482	701	625

Note: Figures based on Regulatory Advice 9: Accounts Direction (OfS 2019.41) published 25 October 2019

The increase in Group employees paid over £100k is mainly due to roles in the Academic University which received two nationally negotiated pay awards during 2021–22 and the spread of clinical excellence awards for clinical employees.

(b) Detailed breakdown within the University Group

(i) Academic University9

Overview

Band	2023	No change	Moved up from a lower band	Moved down from a higher band	New employees	2022
A £100,000 – £150,000	436	336	94	5	1	383
B £150,001 – £200,000	57	42	15			44
C £200,001 – £250,000	11	10	1			8
D £250,001+	4	3	1			3
TOTAL	508	391	111	5	1	438

Note: Figures based on Regulatory Advice 9: Accounts Direction (OfS 2019.41) published 25 October 2019.

Movement between bands, both up and down, is common. Upward movement can occur due to the annual pay increase (this accounts for the majority of the upward movement this year) and for new starters in the previous year (i.e. those only receiving a part salary during 2021–22). Total remuneration can also change when starting or ending a Head of Department role, changes in market pay for retention purposes, or starting or ending payments for additional duties.

By band, the main reasons for change are:

•Band A: National pay award,10 clinical excellence awards, additional duties, Academic Career Pathway promotions;

•Band B: National pay award, new starters in 2021–22 receiving their first full year salary;

•Band C: National pay award, new starters in 2021–22 receiving their first full year salary; and

•Band D: National pay award.

Breakdown by staff group

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

	Academic University
	Clinical		Non-clinical		Total number
	2023	2022	2023	2022	2023	2022
£100,001 – £150,000	176	142	260	236	436	378
£150,001 – £200,000		1	57	46	57	47
£200,001 – £250,000		0	11	11	11	11
£250,001+		0	4	3	4	3
	176	143	332	296	508	439

Note: Figures based on Regulatory Advice 9: Accounts Direction (OfS 2019.41) published 25 October 2019.

(ii) Cambridge University Press & Assessment

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

	Cambridge University Press & Assessment
	2023	2022
£100,001 – £150,000	123	122
£150,001 – £200,000	29	26
£200,001 – £250,000	12	15
£250,001+	3	2
	167	165

Note: Figures based on Regulatory Advice 9: Accounts Direction (OfS 2019.41) published 25 October 2019.

(iii) Trusts and subsidiaries

The following chart gives details for trusts and subsidiaries:

	Trusts		Subsidiaries
	2023	2022	2023	2022
£100,001 – £150,000	2	2	18	10
£150,001 – £200,000	0	0	3	1
£200,001 – £250,000	0	0	1	3
£250,001+	0	0	2	1
	2	2	24	15

Note: Figures based on Regulatory Advice 9: Accounts Direction (OfS 2019.41) published 25 October 2019.

Subsidiaries include:

•Cambridge Enterprise, 13 FTE (2022: 2 FTE);

•Cambridge Investment Management Ltd (CIML), 5 FTE (2022: no change; note: the CIML Remuneration and Nominations Committee is responsible for overseeing payments to CIML staff);

•Institute for Manufacturing Education and Consultancy Services (IfM ECS), 2 FTE (2022: no change);

•Judge Business School Executive Education Limited (JBSEEL), 2 FTE (2021: 1 FTE);

•the Cambridge Centre for Advanced Research and Education in Singapore (CARES), 1 FTE (2022: no change);

•the PHG Foundation, 1 FTE (2022: no change).

Trusts include:

•Cambridge Commonwealth European and International Trust, 1 FTE (2021: no change); and

•the Gates Cambridge Trust, 1 FTE (2022: no change).

(c) Compensation for ending employment

Across the Group, a total of 416 payments were made in the year to staff for the ending of employment (e.g. settlement agreements, redundancy payments, and termination of fixed-term contracts). This was a decrease from the previous year when there were a large number of fixed term contracts ending.

Compensation for loss of office	2023		2022
	Amount		Amount
	Number	£’000	Number	£’000
Academic University	328**	2,095	439**	3,284
Fitzwilliam Museum (Enterprises) Limited	–	–	–	–
Cambridge University Press & Assessment	63	2,273	46	1,788
JBS Executive Education Ltd	1	30	1	21
	392	4,398	486	5,093

** The figures excluding the termination of fixed-term contracts are 34 cases costing £876k (2023) and 27 cases costing £775k (2022).

(d) Definition of pay

Pay is defined by the OfS as follows. Whilst the definition changed in the early years of publication of the Remuneration Committee’s report, it has remained stable for the past four years.

Pay element	OfS current definition
Basic salary	✓
Market pay supplements / retention payments / enhancements	✓
Bonus	Not included
Local and National Clinical Excellence Award payments	Not included
Pension cash supplements	Not included
Additional programmed activity payments (Clinical academic staff only)	Not included
Wellcome Trust Merit Awards	Not included

All the definitions have defined the pay bandings to be before salary sacrifice arrangements, and excluding employer pension contributions.

Higher pay banding analysis

	Based on latest OfS definitions
	TOTAL GROUP
	Clinical		Non-clinical		Total number
	2023	2022	2023	2022	2023	2022
£100,001–£105,000	32	33	82	58	114	91
£105,001–£110,000	35	34	73	83	108	117
£110,001–£115,000	23	5	50	63	73	68
£115,001–£120,000	11	45	55	24	66	69
£120,001–£125,000	54	13	29	36	83	49
£125,001–£130,000	8	5	28	31	36	36
£130,001–£135,000	6	6	39	19	45	25
£135,001–£140,000	3	1	15	19	18	20
£140,001–£145,000	4	0	17	21	21	21
£145,001–£150,000	0	0	15	20	15	20
£150,001–£155,000	0	0	9	20	9	20
£155,001–£160,000	0	0	22	7	22	7
£160,001–£165,000	0	0	12	13	12	13
£165,001–£170,000	0	0	11	4	11	4
£170,001–£175,000	0	0	6	10	6	10
£175,001–£180,000	0	0	9	6	9	6
£180,001–£185,000	0	1	7	4	7	5
£185,001–£190,000	0	0	5	6	5	6
£190,001–£195,000	0	0	5	2	5	2
£195,001–£200,000	0	0	3	1	3	1
£200,001–£205,000	0	0	2	4	2	4
£205,001–£210,000	0	0	1	4	1	4
£210,001–£215,000	0	0	3	6	3	6
£215,001–£220,000	0	0	7	2	7	2
£220,001–£225,000	0	0	3	6	3	6
£225,001–£230,000	0	0	0	2	0	2
£230,001–£235,000	0	0	2	1	2	1
£235,001–£240,000	0	0	3	1	3	1
£240,001–£245,000	0	0	1	1	1	1
£245,001–£250,000	0	0	2	2	2	2
£250,001–£255,000	0	0	2	0	2	0
£255,001–£260,000	0	0	0	0	0	0
£260,001–£265,000	0	0	1	0	1	0
£265,001–£270,000	0	0	1	0	1	0
£295,001–£300,000	0	0	0	1	0	1
£300,001–£305,000	0	0	0	0	0	0
£305,001–£310,000	0	0	0	1	0	1
£310,001–£315,000	0	0	1	0	1	0
£340,001–£345,000	0	0	0	1	0	1
£345,001–£350,000	0	0	0	1	0	1
£350,001–£355,000	0	0	0	0	0	0
£355,001–£360,000	0	0	1	0	1	0
£360,001–£365,000	0	0	1	0	1	0
£380,001–£385,001	0	0	0	1	0	1
£400,001–£405,000	0	0	0	1	0	1
£415,001–£420,001	0	0	1	0	1	0
£505,001–£510,000	0	0	1	0	1	0
	176	143	525	482	701	625

Note: Clinical staff are not on the University’s pay scales.

Annex 1: General principles behind the University’s overall approach to remuneration

1. Operating environment and markets

The University 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.

The University ranks in the top five in international league tables for the quality of its research. Cambridge can claim 121 Nobel Prize winners.1

The University remains financially strong with an Aa1 (negative) rating from Moody’s, a balance sheet of £7.1 billion, and a well-performing endowment fund of £4.1 billion that has, over the past several years, achieved compound returns above its benchmark.

The wider University Group includes Cambridge University Press & Assessment (CUP&A). Its qualifications, assessments, publications and original research spread knowledge, spark enquiry and aid understanding for millions of people around the world. CUP&A is the world’s largest provider of educational programmes and qualifications for five to 19-year-olds, publishes more than 400 peer-reviewed journals, thousands of books and monographs and delivers assessment to eight million learners in more than 170 countries.

Across the Group, the University has an annual income of over £2.5 billion. Research income, won competitively from the UK Research Councils, the European Union (EU), major charities and industry, exceeds £560 million per annum. The Academic University has more than 11,500 staff, with a further 5,500 employed by its subsidiaries. Of the Academic University’s staff, approximately half are employed on academic or research contracts.

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

The HR Committee and the Remuneration Committee agreed2 a set of Reward Principles to guide all decisions relating to remuneration taken at the University:

•A recognition of the need for the University to operate in a competitive local, national and international market for the most talented staff. Our reward strategy needs to offer sufficiently competitive reward packages to attract and retain staff to help the institution retain 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 pay gaps and appropriately valuing contributions of all staff.

•An acknowledgement that while pay and benefits are central, non-financial or intangible mechanisms are also important and should form part of our attractive total award approach.

•Remuneration must be affordable and consistent with the charitable status of the University.

•A commitment to transparency so that our staff, students, regulators and other stakeholders can have confidence in how we use our resources.

•Recognition of the higher than average cost of living in Cambridge, and the impact this has on our staff.

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 paragraph 8 below.

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 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; 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. On 27 March 2023, the University published its 2022 Gender Pay Gap Report.3 The report showed a reduction on the previous year for the Academic University of 2.7% and 0.4% in the median and mean gender pay gaps respectively.

4. Job evaluation, pay awards and pension schemes

For most roles, the University uses the 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 and general contribution.

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 principal pension schemes:

•Universities Superannuation Scheme (USS);

•Cambridge University Assistants’ Contributory Pension Scheme (CPS);

•National Health Service Pension Scheme (NHSPS);

•Cambridge Colleges’ Federated Pension Scheme (CCFPS).

5. Performance-related pay

The Academic University does not operate a specific performance-related pay scheme, other than the NHS scheme for some senior clinicians (who are not on the University’s pay scales).

In normal years, Grade 12 post-holders can progress through the Professorial Pay Review scheme (for Professorial roles) or the Contribution Reward Scheme (for academic-related roles).

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

6. Expenses policy

The University’s expenses policy is included in the Financial Procedures Manual.4 It applies to all University staff.

7. 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.

8. 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

•Academic Careers Pathways (Research and Teaching) Scheme

•Academic Careers Pathways (Teaching and Scholarship) Scheme

•Contribution Increment Scheme for Researchers

•Senior Researcher Promotions

•Contribution Reward Scheme for Academic-Related Staff in Grade 12

•Contribution Reward Scheme (for academic-related and assistant staff in Grades 1–11)

•Additional Responsibility Payments

•Market Pay

•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 senior staff (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 Professorial Pay Review (PPR) is a biennial scheme that enables Professors to apply for progression, should they wish to. The process involves the applicant supplying evidence of achievement during the period covered by an application. Awards are determined by the Vice-Chancellor’s Advisory Committee on Professorial Pay. This Committee receives recommendations for awards for Professors currently in Bands 1 or 2 from a School level committee. The Vice‑Chancellor’s Advisory Committee determines awards within band or progression to Bands 3 and 4.

PPR was reviewed during 2021–22, with initial modification to the scheme introduced for the 2022 round. These changes include:

•Amending the period covered by an application to the period from the date of the last increment awarded, for within band applications; or from the date of promotion / appointment to the current professorial band, for applications to a higher band.

•Removing the requirement for applicants to provide external referees for within band applications.

•Providing summary data to Heads of Department on the pay and career progression of their Grade 12 Professors.

•Introducing an expectation that progression (upon application) for those within the first three points of Grade 12 Band 1 will be awarded, so long as applicants can demonstrate they have maintained the expected level of performance as at the time of promotion to the level of a Grade 12 Professor.

Phase 2 of the Scheme will be further developed during 2023–24, with an expectation that further changes will be approved for implementation as part of the 2024 PPR exercise.

Academic Careers Pathways (Research and Teaching) scheme

The Academic Career Pathways (Research and Teaching) scheme (ACP R&T) allows eligible academic staff to apply for promotion to the offices of Associate Professor (Grade 10), Professor (Grade 11), Professor (Grade 12) and Clinical Professor. Staff holding a Grade 9 office or unestablished post with curatorial, conservation and associated responsibilities in the Museum of Archaeology and Anthropology, the Whipple Museum of the history of Science and the Fitzwilliam Museum are also eligible to apply for promotion to Grade 10, although on promotion their title will be determined by the employing department, i.e. their title will not be Associate Professor (Grade 10).

The ACP R&T scheme also includes a pay progression scheme for Associate Professors at Grade 10.

Academic Careers Pathways (Teaching and Scholarship) scheme

The Academic Career Pathways (Teaching and Scholarship) scheme (ACP T&S) allows eligible academic (teaching and scholarship) staff to apply for promotion to the following positions:

For established staff:

•Professor (Grade 12)

•Professor (Grade 11)

•Associate Professor (Grade 10)

For unestablished staff:

•Teaching Professor (Grade 12)

•Teaching Professor (Grade 11)

•Associate Teaching Professor (Grade 10)

•Associate Teaching Professor (Grade 9)

•Senior Teaching Associate (Grade 8)

•Teaching Associate (Grade 7)

The ACP T&S scheme also includes two pay progression schemes; one for Associate Professors and Associate Teaching Professors at Grade 10, and one for Teaching Associates at Grades 6 and 7, and Senior Teaching Associates at Grade 8.

Researcher Contribution Increment Scheme

This termly scheme allows Departments to reward research staff on the basis of outstandingly good work in comparison with others of the same grade and for which some additional recompense is appropriate; or 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.

Senior Researcher Promotions Scheme

The Senior Researcher Promotions scheme is run annually, following the same timeframes as the Academic Career Pathways schemes, and offers eligible staff the opportunity to apply for promotion to Principal Research Associate (PRA) at Grade 11, and Director of Research (DoR) at Grade 12.

Contribution Reward Scheme for Academic-Related Staff in Grade 12

The University operates an annual contribution reward scheme for Academic-Related staff in Grade 12. To be eligible for consideration, individuals must have been in post and performing their duties at their current grade for at least one year prior to the effective date of the award.

The scheme comprises two components, which are explained below. Eligible employees may be nominated for one award, i.e., either a contribution increment or a single contribution payment, in each annual exercise.

•Contribution increments are awarded in recognition of exceptional contribution;

•Single Contribution Payments are awarded to employees who have reached the top spine point for their band within Grade 12, or in recognition of their contribution in relation to a short term piece of work. Payments are paid at 3% of base salary (pro-rated).

It is normally expected nominations for an award under this scheme will be submitted by the eligible employee’s line manager, although eligible employees may also nominate themselves for an award. Nominations are considered by an appropriate Senior Reviewer, who will put forward recommendations to the Vice-Chancellor’s Advisory Committee for Awards to Professional Services Staff (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, which are explained below. Eligible employees may be nominated for one award, i.e. either a contribution increment or a single contribution payment, in each annual exercise.

1.Contribution Increments (for sustained / ongoing contribution)
The award of up to three 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 the last twelve months.

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 a role is 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 was initially aimed at Assistant and Academic-Related posts where a particular specialist skill exists, but the use of Market Pay awards being used to recruit or retain academic staff where there are particular pay pressures in the discipline has increased in recent years.

Advanced Contribution Supplements

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 on 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 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 toward 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.