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How Can Vice‐Chancellor Compensation Be Justified? Evidence From New Zealand

Author

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  • Muhammad Nurul Houqe
  • Alva Marasigan
  • Charl de Villiers

Abstract

Vice‐chancellors' salaries have been criticised in the media and examined by scholars. Therefore, we examine whether vice‐chancellors' compensation can be explained by performance, job size/complexity, and/or the incumbent's characteristics/abilities. Our sample consists of all New Zealand universities' vice‐chancellors' pay from 2010 to 2023. We find that university characteristics (higher university rankings, having a medical school, and more students), university governance (larger size of the senior leadership team), and vice‐chancellor characteristics (being female, older, and being a New Zealander) are associated with higher vice‐chancellor compensation. The prior literature has largely ignored the added complexity of a medical school. JEL Classification: M4, M41, M48

Suggested Citation

  • Muhammad Nurul Houqe & Alva Marasigan & Charl de Villiers, 2025. "How Can Vice‐Chancellor Compensation Be Justified? Evidence From New Zealand," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 65(3), pages 2805-2820, September.
    • Handle: RePEc:bla:acctfi:v:65:y:2025:i:3:p:2805-2820
    DOI: 10.1111/acfi.70019
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    JEL classification:

    • M4 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation

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