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Vice-chancellor pay and performance: The moderating effect of vice-chancellor characteristics

Vice-chancellor pay and performance: The moderating effect of vice-chancellor characteristics
Vice-chancellor pay and performance: The moderating effect of vice-chancellor characteristics
This paper investigates the association between UK higher education institutions (HEIs) long- and short-term performance measures, and the pay of vice-chancellors/principals (VCs) in an era of intense neoliberalism/financialisation of HEIs, and consequently ascertains the extent to which the VC pay–performance nexus is moderated by VC characteristics. Using a longitudinal sample of UK HEIs, our baseline findings suggest that HEIs that prioritise meeting long-term social performance targets tend to pay their VCs low pay packages, whilst HEIs that focus on achieving short-term reputational performance targets pay their VCs high pay packages. We show further that the VC pay–performance relationship is moderated/explained largely by VC characteristics. Our findings are robust to controlling for alternative governance mechanisms, endogeneities, alternative performance measures and different estimation techniques. Our findings offer empirical support for optimal contracting and prestige theories with significant implications for the sector.

Keywords: Vice-Chancellor/Principal pay, Performance, Vice-Chancellor/Principal characteristics, Governance, Financialisation/Neoliberalism, HEIs, Prestige theory, UK
Vice-Chancellor/Principal pay, Vice-Chancellor/Principal characteristics, Governance, Financialisation/Neoliberalism, HEIs, Prestige theory, UK
0950-0170
Elmagrhi, Mohamed H.
4961f329-8a2d-47c5-83ee-34fc058030fe
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Elmagrhi, Mohamed H.
4961f329-8a2d-47c5-83ee-34fc058030fe
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b

Elmagrhi, Mohamed H. and Ntim, Collins (2022) Vice-chancellor pay and performance: The moderating effect of vice-chancellor characteristics. Work, Employment and Society. (doi:10.1177/09500170221111366).

Record type: Article

Abstract

This paper investigates the association between UK higher education institutions (HEIs) long- and short-term performance measures, and the pay of vice-chancellors/principals (VCs) in an era of intense neoliberalism/financialisation of HEIs, and consequently ascertains the extent to which the VC pay–performance nexus is moderated by VC characteristics. Using a longitudinal sample of UK HEIs, our baseline findings suggest that HEIs that prioritise meeting long-term social performance targets tend to pay their VCs low pay packages, whilst HEIs that focus on achieving short-term reputational performance targets pay their VCs high pay packages. We show further that the VC pay–performance relationship is moderated/explained largely by VC characteristics. Our findings are robust to controlling for alternative governance mechanisms, endogeneities, alternative performance measures and different estimation techniques. Our findings offer empirical support for optimal contracting and prestige theories with significant implications for the sector.

Keywords: Vice-Chancellor/Principal pay, Performance, Vice-Chancellor/Principal characteristics, Governance, Financialisation/Neoliberalism, HEIs, Prestige theory, UK

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More information

Accepted/In Press date: 9 June 2022
e-pub ahead of print date: 9 June 2022
Published date: 9 June 2022
Keywords: Vice-Chancellor/Principal pay, Vice-Chancellor/Principal characteristics, Governance, Financialisation/Neoliberalism, HEIs, Prestige theory, UK

Identifiers

Local EPrints ID: 468138
URI: http://eprints.soton.ac.uk/id/eprint/468138
ISSN: 0950-0170
PURE UUID: 4a4214af-8ece-496c-9d99-119e08b82697
ORCID for Collins Ntim: ORCID iD orcid.org/0000-0002-1042-4056

Catalogue record

Date deposited: 03 Aug 2022 16:47
Last modified: 23 Aug 2022 01:27

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Contributors

Author: Mohamed H. Elmagrhi
Author: Collins Ntim ORCID iD

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