Imperial in 2019–20 | Annual Report and Accounts 2019–20
OUR REMUNERATION POLICIES AND PRACTICES Our pay and benefits package is a critical factor in our ability to attract and retain an outstanding and diverse staff community. We are committed to offering all staff a pay and benefits package that is equitable, fair and appropriately reflects our standing as a world leading university.
Rates of pay We regularly benchmark rates of pay against external comparators. We aim to pay mid to upper quartile rates of pay against these comparators wherever possible within financial constraints. On an annual basis, the College shares pay and benefit information with staff and asks for their input on focal areas for the College in relation to remuneration. A working group led by the Dean of the Faculty of Engineering was formed following feedback discussions, to review academic international pay and employment terms. The outcome of the review will be considered by Provost’s Board to determine any changes required to our current approach.
Annual pay review Our annual pay review for all staff on local pay bargaining terms and conditions is jointly negotiated with the Joint Trade Unions (the University and College Union (UCU), Unite and UNISON). The review considers all elements of reward that impact on staff costs. The College sets the award, taking into account affordability as the principal requirement, assessed against staff demands based on inflationary pressures, feedback from the annual pay and benefit consultation exercise and a review of recruitment and retention information. On 1 September 2019, we implemented a pay increase of £1,080 across all salary scales subject to the award. The increase was backdated to 1 August 2019 and resulted in a 5% increase for the staff on the lowest pay grades earning £20,000£21,000 per year, a 4.9% to 2% increase for salaries up to £55,000 and a 1.54% increase for salaries at £70,000. This pay offer was not accepted by the recognised Joint Trade Unions, but was informally indicated as the preference of two out of the three unions. The contractor minimum rate for those employed primarily on College activities was set at £11.16 per hour, which was 5.6% above the London Living Wage at that time.
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The COVID-19 pandemic has led to uncertainty over both student numbers and research funding for the 2020–21 academic year, and their financial impacts. In March 2020, in consultation with the Joint Trade Unions, we decided to postpone local pay negotiations until October. At this point, we will have a clearer view of student numbers and research funding. Any agreed pay increases will be backdated to 1 August 2020. In recognition of the impact of the COVID-19 pandemic, the President and Provost took a voluntary 20% reduction in their pay for six months from 1 May 2020. The other members of the President’s Board volunteered for a 10% pay reduction over the same period. The monies saved were allocated to provide one-off payments to staff and students experiencing extreme financial hardship due to the COVID-19 pandemic.
Remuneration Committee The Committee meets at least twice a year to review and approve the remuneration of the President and the Provost, their senior staff direct reports and members of the Provost’s and President’s Boards. Outside of formal meetings, the Committee reviews and agrees salaries for senior roles. It also reviews the College’s overall reward strategy to ensure that its remuneration practices are being managed in a fair and equitable way. The Committee is chaired by the Chair of the Council, except for matters relating to the President’s salary, which are chaired by the Deputy Chair of the Council. The Committee comprises external members of the Council. The Provost and President are invited to participate in discussions on specified agenda items, including recommendations relating to the salary reviews of their direct reports, but they are not members of the Committee and are not present for discussion of their own salary. The terms of reference of the Committee can be found in the governance section of this report.
