Annual Remuneration Report, 2023–24

Remuneration report, 2023–24

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 2024 (p. 294 at p. 337).

The general principles behind the University’s overall approach to remuneration for all staff are presented in Annex 1 (p. 390).

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 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 (ToR)3 for the Remuneration Committee were updated in January 2024 and approved by the Council in February 2024. These ToR 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 ToR requires the Remuneration Committee to meet a minimum of twice a term.

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 Executive 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 ToR. 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 (until 31 July 2024)	Professor of Private International Law, member of the Council and Master of Gonville and Caius College	The Council
Dr Louise Joy	College Director of Studies, Tutor and College Associate Professor, a member of the Council	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 met eight times during the 2023–24 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 market payments in respect of two Pro‑Vice-Chancellors. The Committee reviewed and, as appropriate, approved new cases and renewals for market payments to Grade 12 staff. When reviewing market pay applications the Committee reviews the implications on the gender and ethnicity pay gaps and challenges departments on their plans to address any pay gaps. The Committee also approved the enhancements to the market pay forms and approved cases for payments to external members of certain committees.

The Committee was kept updated on work being undertaken as part of the University’s pay review and held a joint meeting with the Human Resources Committee to discuss strategic pay priorities for the University.

It also led the annual process for the review of the Vice-Chancellor’s performance against her objectives and delivered a report to the Council in October.

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 2023 to 31 July 2024, with the comparative relating to the year from 1 August 2022 to 31 July 2023.

In the previous year, 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. The disclosures in this note relate to the current Vice‑Chancellor for the year ended 31 July 2024 and the three post-holders4 for the year ending on 31 July 2023.

	2024 £000	2023  £000
Salary for the period	409	3985
Other taxable remuneration	42	–
Deductions to reflect salary sacrifice arrangements	(31)	(14)
Net salary paid in the year	420	384
Taxable benefits in kind	29	25
Non-taxable benefits in kind	25	13
Total excluding employer contributions	474	422
Employer pension contributions	103	44
Payments made in lieu of pension	–	33
Total remuneration	577	499

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

The Vice-Chancellor did not receive any payments for external appointments during 2023–24.

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

The Vice-Chancellor’s basic salary is 10.4 times (2023: 10.3 times and 2022: 10.5 times6) 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 Vice-Chancellor’s total remuneration is 12.7 times (2023: 10.4 times and 2022: 11.9 times6) 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 total remuneration includes £42,486 additional taxable remuneration in relation to relocation expenses paid by the Vice-Chancellor and reimbursed by the University. Without these one-off relocation expenses, the total remuneration is 11.8 times the median pay of staff.

Compared to academic staff alone, the current Vice-Chancellor’s total remuneration is 6.8 times the median total remuneration of academic staff (including clinical staff) (2023: 5.6 times).

The median pay calculation includes 1,080 agency staff (2023: 1,223) employed on temporary contracts through the University’s Temporary Employment Services (TES).

Comparative data for the sector is not yet available for 2023–24. However, through UCEA, the University has access to similar data for the year 2022–23. The two graphs below illustrate the 2022–23 (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 – (all HEIs)

Relationship between income and total remuneration ratio (all HEIs)

The two graphs below show the 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)

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

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.

Two market payments to these roles were approved during 2023–24.

For the Chief Financial Officer, the Registrary, the Executive Director of Development and Alumni Relations, the Executive 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 2023–24.

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 2024) who fall under the purview of the Remuneration Committee (excluding the Vice-Chancellor – see B.1. above), shown in £5k bands, are below:

Range	2024 Number	2023 Number
£150,000–£154,999
£155,000–£159,999	1
£160,000–£164,999		1
£165,000–£169,999
£170,000–£174,999		1
£175,000–£179,999	2	1
£180,000–£184,999		1
£185,000–£189,999	2	3
£190,000–£194,999	1
£195,000–£199,999
£200,000–£204,999
£205,000–£209,999
£220,000–£224,999		1
£230,000–£234,999	1
£235,000–£239,999
£250,000–£254,999		1
£265,000–£269,999	1
£335,000–£339,999
£340,000–£344,999
£360,000–£364,999		1
£370,000–£374,999	1
Total	9	10

Note: The remuneration of senior post-holders is also included in the data of staff earning > £100k shown in £5k bands (p. 388).

The movements between the numbers for 2023 and 2024 result from the application of the 2023–24 national pay award which was effective from August 2023. One post was vacant as at 31 July 2024.

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 eleven 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. For those cases where the market pay is below 10%, the relevant Head of School’s approval is required. Market payments are time-limited, requiring them to be reviewed after no more than five years. Such payments are reduced by the amount of base pay that is increased when an award is made through any of the University’s reward and progression schemes.

The Committee noted that there continued to be reasonably high numbers of market pay cases each year. The Human Resources Committee has commissioned a Pay Review Steering Group to consider what improvements could be made, within the bounds of affordability, to achieve a more transparent and equitable pay framework and this will include the use of market pay.

The annual report of Grade 12 market pay cases, including submissions approved by Heads of Schools and the Remuneration Committee in 2023–24 (1 October 2023 to 30 September 2024) is shown below.

	Value Range (% of bottom grade)		Request Type			Staff Type			Grade 12												Recruitment/Retention Successful?
	Min	Max	Recruitment	Retention	Renewal	Academic	Clinical Academic	Academic-related	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
Other Institutions (Council)	10.0%	23.8%	1	2				3	1	1	1										1		1	1
Other Institutions (General Board)
School of Arts and Humanities
School of the Biological Sciences	8.8%	30.9%	1	5	3	9			1			6	2								4			5
School of Clinical Medicine	16.3%	16.3%	1				1								1						1
School of the Humanities and Social Sciences	24.8%	160.2%	5	3		8			2			4			1	1					4	3		1
School of the Physical Sciences	10.5%	50.0%	3	2	1	6			1			3				1				1	2	2	1	1
School of Technology	6.5%	205.8%	2	7	3	11		1	8			1	1	1	1						3		1	8
Unified Administrative Service	38.5%	50.4%	1	1				2	1		1												1	1
Grand Total	6.5%	205.8%	14	20	7	34	1	6	14	1	2	14	3	1	3	2				1	15	5	4	17

Notes
Min % and Max % represent %age of market pay value to bottom of grade or band.
M = Men; W = Women; U = Where the gender is unknown as recruitment is yet to be completed.
Recruitment cases include pre-emptive cases. 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.

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 2023–24 and 2022–23 in the University Group.

	TOTAL GROUP
	Clinical Academic		Non-clinical Academic and other		Total number
	2024	2023	2024	2023	2024	2023
£100,001 – £150,000	193	176	539	403	732	579
£150,001 – £200,000	12	0	113	89	125	89
£200,001 – £250,000	0	0	26	24	26	24
£250,001+	0	0	16	9	16	9
Total	205	176	694	525	899	701

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 a nationally negotiated pay award and the spread of clinical excellence awards for clinical employees.

(b) Detailed breakdown within the University Group

(i) Academic University9

Overview

Band	2024	No change	Moved up from a lower band	Moved down from a higher band	New employees	2023
A   £100,000 – £150,000	571	332	229	5	5	436
B   £150,001 – £200,000	87	47	40			57
C   £200,001 – £250,000	18	6	12			11
D   £250,001+	8	4	4			4
TOTAL	684	389	285	5	5	508

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 2022–23). 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, clinical excellence awards, additional duties, Academic Career Pathway promotions and pay increases as a result of the biennial Professorial Pay Review (PPR);

•Band B: National pay award, new starters in 2022–23 receiving their first full-year salary;

•Band C: National pay award, new starters in 2022–23 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
	2024	2023	2024	2023	2024	2023
£100,001 – £150,000	193	176	378	260	571	436
£150,001 – £200,000	12		75	57	87	57
£200,001 – £250,000	0		18	11	18	11
£250,001+	0		8	4	8	4
	205	176	479	332	684	508

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
	2024	2023
£100,001 – £150,000	136	123
£150,001 – £200,000	35	29
£200,001 – £250,000	8	12
£250,001+	6	3
	185	167

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
	2024	2023	2024	2023
£100,001 – £150,000	1	2	24	18
£150,001 – £200,000	0	0	3	3
£200,001 – £250,000	0	0	0	1
£250,001+	0	0	2	2
	1	2	29	24

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

Subsidiaries include:

•Cambridge Enterprise, 14 FTE (2023: 13 FTE);

•Cambridge Investment Management Ltd (CIML), 4 FTE (2023: 5 FTE; note: the CIML Remuneration and Nominations Committee is responsible for overseeing payments to CIML staff);

•Institute for Manufacturing Education and Consultancy Services (IfM ECS), 4 FTE (2023: 2 FTE);

•Judge Business School Executive Education Limited (JBSEEL), 4 FTE (2023: 2 FTE);

•the Cambridge Centre for Advanced Research and Education in Singapore (CARES), 1 FTE (2023: no change);

•the PHG Foundation, 1 FTE (2023: no change);

•The Cambridge Institute for Sustainability Leadership (Belgium), 1 FTE (2023: 0 FTE); and

•Innovate Cambridge Ltd (previously called Cambridge&), 1 FTE (2023: 0 FTE).

Trusts include:

•Cambridge Commonwealth European and International Trust, 1 FTE (2023: no change); and

•the Gates Cambridge Trust, 0 FTE (2023: 1 FTE).

(c) Compensation for ending employment

Across the Group, a total of 414 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).

Compensation for loss of office	2023–24		2022–23
	Amount		Amount
	Number	£’000	Number	£’000
Academic University	353*	1,796	328*	2,095
Fitzwilliam Museum (Enterprises) Limited	–	–	–	–
Cambridge University Press & Assessment	61	2,659	63	2,273
JBS Executive Education Ltd	0	–	1	30
Total	414	4,455	392	4,398

* The figures excluding the termination of fixed-term contracts are 37 cases costing £635k (2023: 34 cases costing £876k).

(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 five 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 before salary sacrifice arrangements, and excluding employer pension contributions.

Higher pay banding

	Based on latest OfS definitions
TOTAL GROUP
Clinical		Non-Clinical		Total number
2024	2023	2024	2023	2024	2023
£100,001–£105,000	11	32	102	82	113	114
£105,001–£110,000	18	35	78	73	96	108
£110,001–£115,000	16	23	81	50	97	73
£115,001–£120,000	29	11	59	55	88	66
£120,001–£125,000	12	54	56	29	68	83
£125,001–£130,000	27	8	42	28	69	36
£130,001–£135,000	58	6	46	39	104	45
£135,001–£140,000	7	3	37	15	44	18
£140,001–£145,000	7	4	20	17	27	21
£145,001–£150,000	8	0	18	15	26	15
£150,001–£155,000	3	0	12	9	15	9
£155,001–£160,000	1	0	23	22	24	22
£160,001–£165,000	3	0	14	12	17	12
£165,001–£170,000	1	0	14	11	15	11
£170,001–£175,000	2	0	10	6	12	6
£175,001–£180,000	0	0	9	9	9	9
£180,001–£185,000	1	0	6	7	7	7
£185,001–£190,000	0	0	11	5	11	5
£190,001–£195,000	0	0	9	5	9	5
£195,001–£200,000	1	0	5	3	6	3
£200,001–£205,000	0	0	3	2	3	2
£205,001–£210,000	0	0	4	1	4	1
£210,001–£215,000	0	0	1	3	1	3
£215,001–£220,000	0	0	4	7	4	7
£220,001–£225,000	0	0	6	3	6	3
£225,001–£230,000	0	0	2	0	2	0
£230,001–£235,000	0	0	3	2	3	2
£235,001–£240,000	0	0	1	3	1	3
£240,001–£245,000	0	0	1	1	1	1
£245,001–£250,000	0	0	1	2	1	2
£250,001–£255,000	0	0	1	2	1	2
£255,001–£260,000	0	0	2	0	2	0
£260,001–£265,000	0	0	2	1	2	1
£265,001–£270,000	0	0	2	1	2	1
£275,001–£280,000	0	0	2	0	2	0
£285,001–£290,000	0	0	1	0	1	0
£310,001–£315,000	0	0	0	1	0	1
£330,001–£335,000	0	0	1	0	1	0
£355,001–£360,000	0	0	0	1	0	1
£360,001–£365,000	0	0	0	1	0	1
£365,001–£370,000	0	0	0	0	0	0
£370,001–£375,000	0	0	1	0	1	0
£375,001–£380,000	0	0	0	0	0	0
£380,001–£385,001	0	0	1	0	1	0
£405,001–£410,000	0	0	1	0	1	0
£410,001–£415,000	0	0	0	0	0	0
£415,001–£420,000	0	0	0	1	0	1
£420,001–£425,000	0	0	0	0	0	0
£425,001–£430,000	0	0	0	0	0	0
£430,001–£435,000	0	0	0	0	0	0
£435,001–£440,000	0	0	1	0	1	0
£505,001–£510,000	0	0	0	1	0	1
£535,001–£540,000	0	0	1	0	1	0
Total	205	176	694	525	899	701

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 125 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 £2.9 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 the 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. In March 2024, the University published its 2023 Gender Pay Gap Report.3 The report showed a reduction on the previous year for the Academic University of 1.2% in the mean gender pay gap. Unfortunately, the median increased from 8.4% to 10.4%. However, this is still lower than it was prior to 2022 when it was 11.1%.

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 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. 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 Grade 12 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.

As a result of a review of the scheme in 2021–22, several changes were introduced for the 2022–23 round. Further changes were approved for the 2024–25 round which include changing the name of the scheme to Academic Career Pathways (Grade 12) (ACP (12)) and future-dating awards to the October following completion of the scheme.

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)

•Clinical Professor

•Professor (Grade 11)

•Associate Professor (Grade 10)

For unestablished staff:

•Teaching Professor (Grade 12)

•Clinical Teaching Professor

•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 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 a 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 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.

Other recruitment incentives available to staff include:

•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.