University and college principals have been warned to stop taking inflation-busting pay rises by the Scottish Government.

In a letter to the sector, Richard Lochhead, the Higher Education Minister, urged senior staff to exercise “restraint” by ensuring future salary hikes were in line with increases given to staff.

Last year, lecturers and student leaders demanded a change in the law to curb “excessive” pay rises for university principals – with the highest salaries now up to £380,000.

The call came after The Herald revealed figures for the past decade which showed substantial rises for the post of principal at many Scottish universities far in excess of those given to staff.

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The 10-year increases – the highest of which amounted to a 76 per cent  rise – compare to an uplift for lecturing staff of some 18% since 2007.

Mr Lochhead highlighted the issue in his latest letter of guidance to the Scottish Funding Council (SFC), which administers public funding on behalf of colleges and universities.

He said: “The SFC should encourage senior figures within the college and university sectors to demonstrate restraint in their own pay settlements and senior pay packages should be in step with the salary, terms and

conditions offered to other university and college staff.

“As set out in your financial memoranda, while public sector pay policy does not apply directly to colleges and universities, they must have regard to it.

“Therefore, the SFC should be assured that institutions are setting pay arrangements for senior staff that ensure value for money, affordability and sustainability in the longer term.”

A spokesman for the UCU Scotland lecturers’ union called for action to ensure executive salaries were pegged to those of staff.

He said: “This is a very welcome, if not before time, intervention by the Scottish Government. For too long we’ve seen university principals enjoying inflation-busting rises while keeping down staff pay.

“Linking the pay of those at the very top with everyone else working in our universities makes sense. Staff have seen their pay fall by 21% in real terms over the past decade and as UCU prepares to ballot members for industrial action over pay and pensions principals need to take heed of this guidance.”

Liam McCabe, president of student body NUS Scotland, said the letter did not go far enough.

In 2012, a review of higher education governance called for university remuneration committees that set the pay of principals to include members of staff and students to increase transparency.

However, subsequent legislation did not enforce this aspect of the review - although staff and students do now sit on ruling Courts of universities where decisions are ratified.

Lecturers and student leaders are also concerned that principals can sit on remuneration committees - although they are not allowed to be in attendance when their salaries are discussed.

Many universities have also come under fire for failing to publish the minutes of meetings to discuss principals’ pay.

Mr McCabe said: “Whilst we welcome the Scottish Government’s recommendation of restraint on principals’ pay, it’s too little too late for Scotland’s hard-pressed academic staff.

“It beggars belief that, whilst some institutions are opening up redundancy schemes, cutting teaching posts and putting lecturers on zero hours contracts, principals continue to enjoy ever-growing salaries, benefits and bonuses.

“To that end, NUS Scotland will continue to call for transparency around the remuneration of senior staff, ensuring staff and student involvement in the process to create parity throughout our institutions.”

However, a spokesman for Universities Scotland, which represents principals, said value for money, affordability and sustainability were already represented in the sector’s code of good governance, developed with staff and students in 2017.

He said: “There were many examples of good governance within the code, but the most important was the move to make the decision-making of remuneration committees more transparent and inclusive.

“This included offering staff and students the opportunity to be part of the process which sets senior figures’ pay. We believe these changes have increased confidence in the governance arrangements of our world-class seats of higher education.

“An often over-looked point in the discussion about senior pay is the fact that no principal has any involvement in deciding his or her remuneration. Universities publish details of the remuneration of their principal and other senior staff, on an annual basis, because they are committed to transparency and continuous enhancement of good governance.”

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The highest paid principal in Scotland is Professor Peter Mathieson, at Edinburgh University, who earns £380,000. Previously, the highest paid principal was Professor Sir Jim Macdonald, from Strathclyde University, who earns £373,000. The salary package for the post was £199,000 a decade ago.

Professor Sir Anton Muscatelli, principal of Glasgow University earns £340,000.

Earlier, this month, the SFC launched an investigation into a £282,000 payment to the former principal of Aberdeen University. The cash relates to the notice period being served by Sir Ian Diamond, who stepped down from the top job in July last year. principals need to take heed of this guidance.”

Liam McCabe, president of student body NUS Scotland, said the letter did not go far enough.

In 2012, a review of higher education governance called for university remuneration committees that set the pay of principals to include members of staff and students to increase transparency.

However, subsequent legislation did not enforce this aspect of the review, although staff and students do now sit on ruling courts of universities where decisions are ratified.

Lecturers and student leaders are also concerned that principals can sit on remuneration committees,  although they are not allowed to be in attendance when their salaries are discussed. Many universities have also come under fire for failing to publish the minutes of meetings to discuss principals’ pay.

Mr McCabe said: “Whilst we welcome the Scottish Government’s recommendation of restraint on principals’ pay, it’s too little too late for Scotland’s hard-pressed academic staff.

“It beggars belief that, whilst some institutions are opening up redundancy schemes, cutting teaching posts and putting lecturers on zero-hours contracts, principals continue to enjoy ever-growing salaries, benefits and bonuses. To that end, NUS Scotland will continue to call for transparency around the remuneration of senior staff, ensuring staff and student involvement in the process to create parity throughout our institutions.”

However, a spokesman for Universities Scotland, which represents principals, said value for money, affordability and sustainability were already represented in the sector’s code of good governance, developed with staff and students in 2017.

He said: “There were many examples of good governance within the code, but the most important was the move to make the decision-making of remuneration committees more transparent and inclusive.

“This included offering staff and students the opportunity to be part

of the process, which sets senior figures’ pay.

“We believe these changes have increased confidence in the governance arrangements of our world-class seats of higher education.

“An often over-looked point in the discussion about senior pay is the fact that no principal has any involvement in deciding his or her remuneration.

“Universities publish details of the remuneration of their principal and other senior staff, on an annual basis, because they are committed to transparency and continuous enhancement of good governance.”