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Remuneration (Executive and Senior Managers) Framework Policy

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Section 1 - Purpose and Context

(1) Western Sydney University operates in a highly competitive marketplace for critical skill sets and capability, particularly in the context of recruiting and retaining executive and senior manager roles.

(2) To recruit and retain these critical leaders, the University must have the flexibility and capacity to quickly and effectively negotiate competitive remuneration packages and reward high performing staff. This will:

  1. strategically position the University in the market place; and
  2. enable effective management and response to competitor overtures.

(3) This policy provides the principles and procedures for establishing remuneration for University executive and senior managers.

(4) The policy applies to senior staff identified in the remuneration bands set out in Section 4. The policy does not apply to staff who are covered by the Professional Staff Agreement or Academic Staff Agreement.

(5) The policy does not apply to the Vice-Chancellor and President, as his/her remuneration arrangement is dealt with by the Chancellor.

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Section 2 - Definitions

(6) For the purposes of this policy:

  1. 'Market Remuneration' is the distribution of remuneration, generally expressed as the Total Remuneration Package [TRP] outcomes for similar roles across the marketplace - the Australian Higher Education sector.
  2. 'Senior Executive' means the Deputy Vice-Chancellors and Vice-President.
  3. 'Work Value' means the intrinsic 'value' of the role and the work undertaken, the level of influence, control and autonomy to act, and the capacity to effect business outcomes.
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Section 3 - Policy Statement

(7) Western Sydney University is committed to attracting, engaging and retaining highly competent and skilled senior staff with the capabilities, professionalism and motivation to drive the University's strategic goals and objectives as laid out in the Securing Success 2015-2020 Strategic Plan.

(8) The University is also committed to ensuring fairness and consistency in its remuneration practice and in ascertaining gender pay equity.

(9) The University sets indicative remuneration 'bands' for its executive and senior managers, which provide a span of remuneration based on comparative remuneration data and the University's strategic market positioning in the sector.

(10) Work value is used to identify each role in a band.

(11) Annual increases to the remuneration span for each band will be recommended by the Vice-Chancellor and President for consideration and approval by the Board of Trustees.

(12) The remuneration package for each individual will be assessed by the Division Head following an annual performance assessment, and forwarded to the Vice-Chancellor and President for approval.

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Section 4 - Procedures

Remuneration Bands

(13) The University adopts the following bands for the purposes of providing a span of remuneration outcomes relevant to a range of roles that are broadly equivalent in terms of work value. Titles depicted in each band are indicative only and subject to assessment, recommendation and determination on a case by case basis.

Band Roles [indicative titles]
1 Deputy Vice-Chancellor, Vice-President
2 Dean, Pro  Vice-Chancellor, Director, Research Institute, Executive Director, Chief Officer
3 Deputy Dean, Dean, Graduate Studies, Director [higher], Assistant Vice-Chancellor
4 Director [lower], Associate Director, Senior Manager

Individual Roles

(14) For each new or substantially changed role for an executive position:

  1. the Office of Human Resources (HR) may assess academic executive roles based on direct comparison with similar roles within the University and the Executive Director, Human Resources (Exec Director HR) will recommend an appropriate band and, where relevant, a particular remuneration level within the band to the Vice-Chancellor and President who will  determine and approve the appropriate band and particular remuneration level and note to the Board of Trustees; 

(15) For each new or substantially changed role for a senior manager position:

  1. the Office of Human Resources will assess the role in terms of work value using the Hay job evaluation     methodology, following approval of the position description, and in accordance with University delegations.

(16) The Vice-Chancellor and President will determine the position of each individual role / staff member within a band's remuneration span based on the following:

  1. an individual's performance and effectiveness in the role;
  2. the internal relativities within the University; and
  3. the market dynamics for the specific role.

Market Anomalies

(17) Where there are clear market anomalies for a particular role that is in high market demand, or where the University is at risk of not retaining mission critical individuals, the Vice-Chancellor and President may approve a remuneration package outside the normal span for that role, so as to maintain or advance its strategic market positioning. The role will, however, be regarded as remaining within the respective band for reporting purposes and assessing internal relativity.

(18) In exceptional circumstances, the Vice-Chancellor and President may approve a 'market leading' remuneration package for a mission critical role.

(19) Where market anomalies relate to a Senior Executive role, the Vice-Chancellor and President will make a determination and notify the Board of Trustees of that decision.

Governance

(20) The Office of Human Resources will conduct an annual review of the appropriateness of the span set for each band. This review will rely on external, recognised, benchmark remuneration data such as the MERCER remuneration survey and the following considerations:

  1. The benchmark comparison is to be relative to the incumbent[s] of roles within that band being 'fully effective' in their role;
  2. The median for each remuneration span for each band is to be at, or around, the 75th percentile;
  3. Monitoring and reporting will incorporate analysis against the 50th and 75th percentile where there are directly comparable roles; and
  4. The remuneration span for each band is to provide the flexibility to determine an individual's remuneration package commensurate with performance, internal relativity and market dynamics for the majority of roles in that band.

(21) The Office of Human Resources will advise the Vice-Chancellor and President of the outcomes of this review and any anomalies and actions recommended.

(22) The Vice-Chancellor and President will consider and may adjust the remuneration package for executive and senior managers, within the relevant span having regard to:

  1. the outcomes of HR review;
  2. the executive's / senior manager's performance;
  3. maintaining internal relativity;
  4. the market dynamics for the specific role; and
  5. any recommendation[s] made by the relevant Deputy Vice-Chancellor, Vice-President or Dean.

Reporting

(23) The Vice-Chancellor and President will provide an annual report to the Board of Trustees commensurate with the Board's Terms of Reference and containing the following:

  1. Remuneration of the Executive;
  2. Executive and senior manager distribution by gender within bands;
  3. Recommendations for any broad adjustment to the span of remuneration levels, excluding adjustments that reflect Enterprise Bargaining increases; and
  4. A summary of the performance evaluation process used to assess the Deputy Vice-Chancellors, Vice-Presidents and Deans, and the outcomes of that performance evaluation process.

(24) In addition to the annual report, the Vice-Chancellor will advise the Board of Trustees of salary increments for Deputy Vice-Chancellors, Vice-Presidents and Deans as soon as practicable after such remuneration determinations are made.

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Section 5 - Guidelines

(25) Nil.