University of Johannesburg Vice-Chancellor's R7 Million Salary Sparks Debate

Johannesburg - A detailed inquiry by the Council on Higher Education (CHE) revealed that the University of Johannesburg's Vice-Chancellor (VC) was the highest-earning university executive in 2019, taking home an astonishing R7 million, a figure inclusive of various perks and incentives. This stark revelation is part of a broader picture of remuneration within South African higher education institutions, which has come under scrutiny in recent times.

The disclosed salary was disclosed to be more than double the national average for university vice-chancellors, and it also exceeded the salary of the President of South Africa, making it a topic of national debate. The compensation package provided to the UJ VC also surpassed the earnings of most CEOs at major South African science councils. Additionally, the R7 million total compensation could have covered the annual tuition fees for approximately 128 students, highlighting the financial disparity between executive compensation and student expenses.

It wasn't only the University of Johannesburg that came under the spotlight. The CHE's comprehensive report examined the rise in remuneration costs for VCs across various other universities in the country from 2005 to 2019, during which period the report found a 206% increase in the cost to the company for this position.

Despite having the highest total compensation package, UJ's VC did not have the highest basic salary; that distinction went to Stellenbosch University, whose VC earned R4.1 million as a basic salary before any additional perks. At the other end of the spectrum, the University of Venda paid its VC the least among the 26 universities observed during the same time frame.

One of the most concerning findings of the inquiry was the lack of correlation between executive pay and the performance of institutions. This raises questions about the rationale for such high salaries and whether the costs are justified relative to the outcomes and achievements of the universities under their stewardship.

The conversation about executive pay in the public sector is not new, but this disclosure comes at a time when higher education in South Africa is under significant financial pressure, with calls for more affordable education and better resource allocation. The tension between ensuring competitive remuneration to attract top talents to run these complex institutions and maintaining a sustainable cost structure is palpable.

The University of Johannesburg and other institutions must now navigate the public scrutiny of their compensation policies and make earnest efforts to justify these large remuneration packages amid growing concerns over university funding and student tuition fees.

This finding poses tough questions for the governing bodies of universities in South Africa as they strive to foster equity and sustainability within the educational framework of the country.