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Volume 33 Number 1 June 2008 |
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The Stairway to the Top: The Remuneration of Academic Executives |
| Kenneth W. Clements and H.Y. Izan
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Abstract |
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Australian universities have in recent times been undergoing a substantial
transformation in the way in which they are managed. They have moved away from
the (British-based) traditional collegiate model to one in which professional
managers play a centre-stage role. This paper investigates an important element of
the managerialism at Australian universities, the market for what we call `academic
executives' (AEs). We analyse the remuneration of the top AEs at Australian
universities over the past six years and show that institutional size is a dominant
driving factor of remuneration, as has been found with compensation of CEOs in the
private sector. We also find the pay-size elasticity to be about 0.25 and is the same
for both the university and private sectors; and remarkably, this value has also been
found in previous studies on executive remuneration for the US and the UK. The
remuneration schedule for the university sector is about half as steep as that for the
private sector, suggesting that it is a much harder climb to the top of the corporate
ladder. We analyse the structure of remuneration among AEs and the Group of Eight
universities are found to have a pay parity structure that is closest to that for the
private sector.
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Keywords |
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EXECUTIVE COMPENSATION; UNIVERSITIES; PAY PARITY MATRIX.
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Contact DetailsKenneth W. Clements, H.Y. IzanUWA Business School, The University of Western Australia. Email: Izan@biz.uwa.edu.au |
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