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Pay ratios

Disclosure date: 20 December 2012

Reference: FOI2012/084

Request

Please could you send the following information as outlined in the Freedom of Information Act for the year ending 31 July 2012, or for the financial year in which 31 July 2012 falls. Please specify what period this information refers to at the beginning of your answer.

1) The number of individuals employed by the university who receive total remuneration of £140,000 pa or more.

2) The total remuneration of the highest paid employee.

3i) The number of individuals directly employed by the university who are paid less than the Living Wage of £7.20 per hour [or £8.30 per hour within Greater London].

(ii) If available, the number of individuals employed by outside contractors to provide services at your university who are paid less than the Living Wage of £7.20 per hour [or £8.30 per hour within Greater London].

(iii) Whether your university has a policy to require on-site staff working for external contractors to be paid Living Wage rates as a minimum.

4) The number of employees paid at exactly the National Minimum Wage, including those employed by outside contractors to work at your university.

5) The ratio between the total remuneration* of the highest-paid employee and the total remuneration* of the lowest-paid employee.

6) The ratio between the total remuneration* of the highest-paid employee and the total remuneration* of the median-paid employee.

*[adapted from the government's definition of remuneration (for local authority chief officers) under section 43 of the Localism Act 2011]

Remuneration meaning:
    
a) salary or, in the case of an individual engaged under a contract for services, payments made by the university to the individual those services,
b) any bonuses payable by the university to the individual,
c) any charges, fees or allowances payable by the authority to the individual,
d) any benefits in kind to which the individual is entitled as a 
result of their office or employment, 
e) any increase in or enhancement of the individual's pension entitlement where the increase or enhancement is as a result of a resolution of the university, and 
f) any amounts payable by the university to the individual on the individual ceasing to hold office under or be employed by the university, other than amounts that may be payable by virtue of any enactment. 
g) calculated as full-time equivalent.

Response

The following answers relate to the financial year ending on 31 July 2012.

1) One

2) £190,363 as at 31 July 2012.

3i) Zero

(ii) The School’s contracts with external contractors include in the contract specification that external contractors’ employees must be paid at least the London Living Wage (£8.55 per hour from November 2012).

(iii) See answer above.

4) Zero: the National Minimum Wage rates are lower than LLW.

5) The highest paid FTE employee earns £190,363 including London Allowance. The lowest paid FTE employee earns £19,961 including London Allowance.

Answer: The ratio is 9.54

6) The highest paid FTE employee earns £190,363 including London Allowance. The School uses the National Pay Framework which has 51 pay spine points; of those 51 spine points, 41 of them are used currently to paid FTE employees. The lowest used spine point is number 12; the highest is number 51.
The median is spine point number 31 as it is the middle of the 41 spine point numbers used. Thus the median is £33,154 including London Allowance (for one FTE).

Answer: The ratio is 5.74