University of Canberra's next vice-chancellor Bill Shorten has asked to be paid less than the $1 million package earned by his predecessor because he thinks the job doesn't warrant it.
Mr Shorten, who would not comment directly on his salary, is understood to have told chancellor Lisa Paul he did not think the job should pay that much, especially when the university is in financial distress.
"I intend to ensure the University of Canberra is sustainable in the future and can stand on its own two feet. I'm fully supportive of the current steps being taken [to save costs at the university] and believe university leaders should 'walk the walk'," Mr Shorten said.
"I think a better UC will emerge for students, staff and Canberra."
Former vice-chancellor Professor Paddy Nixon's remuneration package of $1 million spiked to $1.8 million last year before he abruptly left the position.
The final payout included entitlements and separation payments as per his contract.
The Canberra Times can reveal Mr Shorten asked for a remuneration package about 15 per cent lower than Professor Nixon's, meaning he will likely earn about $850,000 including superannuation and entitlements.
As a cabinet minister, Mr Shorten currently takes home a base salary of $403,063.
However, he is also entitled to an electorate allowance of about $40,000 plus travel and accommodation expenses are covered for parliamentary business.
University of Canberra chancellor Lisa Paul said she fully supported Mr Shorten's request to have a smaller pay package than his predecessor.
"He cares deeply about bringing us back to financial sustainability and helping that journey. And you know, you have to start with a contribution from the top," Ms Paul said.
"I'm really delighted that we've come to agree that there'll be approximately 15 per cent difference."
She said Mr Shorten would not have any performance pay or bonuses and his contract did not include similar separation payments to that of Professor Nixon.
"It was Mr Shorten's and my view that to line up better with community expectations and in recognition of what the university is going through, there was no way he should take as high a remuneration package as the former vice-chancellor."
In October, the university announced at least 200 jobs would be cut in order to bring an escalating budget deficit under control.
Staff were told the deficit for 2024 was expected to be $26 million but this had blown out to $36 million.
When Ms Paul took on the role of chancellor at the beginning of the year, she was not fully aware of the university's financial situation.
She said the university was going through "a terribly hard time" but the restructure had to be done for the sake of the university's future.
"The human cost is really distressing. And you know, I feel deeply for what people are going through," Ms Paul said.
National Tertiary Education Union general secretary Dr Damien Cahill said Australian vice-chancellor salaries were "grossly over-inflated" and out of step with community standards for public institutions.
"They are among the highest paid vice-chancellors in the world," Dr Cahill said.
"There is no way that vice-chancellors require that level of remuneration to perform the job they're doing, particularly when, in most cases, they're doing a fair to middling job at best."
Australian National University vice-chancellor Genevieve Bell requested a 10 per cent pay cut as the institution aims to cut $250 million from its ongoing spending by 2026. The pay reduction would bring her package to about $1 million.
Last year, the vice-chancellor of Australia's top-ranked university, University of Melbourne, took home at least $1.44 million. Monash's leader was paid $1.56 million, while University of Sydney's vice-chancellor was paid at least $1.17 million.
In his last year as ANU vice-chancellor, Professor Brian Schmidt had a remuneration package of $852,242. He took a pay cut in 2020 to a total package of $560,000 in the year the COVID pandemic hit, but his remuneration rose in the subsequent years.
The vice-chancellor remuneration figures include long service leave, superannuation and other benefits.
In the case of the University of Canberra vice-chancellor, it includes the value of living in the vice-chancellor's house on campus.
