Appointing the head of the institution is probably one of the most important tasks that most governing bodies will have to undertake. Most governing bodies establish a search or recommending committee, often with one or more external advisers. It is also common for institutions to retain the services of executive search agencies or ‘headhunters’ to assist in this process. The final decision, though, is one for the whole governing body.
The governing body may also have a role in the appointment of other senior staff and will normally appoint its clerk or secretary to that role.
The responsibility of the governing body does not end with the appointment of a new institutional head, and there is a need to provide ongoing support, particularly in the early stages of appointment. The role of the head of the institution (like that of the CEO of any large organisation) can be a very lonely one, and a relationship based on mutual trust with governors (particularly the chair of the governing body) is essential.
The governing body must establish a remuneration committee usually to deal with:
The degree of authority (if any) delegated to remuneration committees varies, but it is important for the governing body as a whole to have a strong oversight of the committee’s work, ideally within the context of a remuneration policy.
Many remuneration committees and governing bodies find reviewing senior staff performance and related pay issues difficult. A key issue is the extent to which institutional and individual performance can be separated, but this should be attempted for two reasons:
Senior staff severance can be controversial, and there is always a temptation for institutions to pay more than they have to in terminating a contract. The CUC Guide states: "if considering severance arrangements for senior staff, the remuneration committee must represent the public interest and avoid any inappropriate use of public funds. The committee should be careful not to agree to a severance package which staff, students and the public might deem excessive. Contracts of employment for senior staff should specify notice periods of not more than 12 months and should not provide for pension enhancements".
More information [PDF, 57Kb]. See also further material on appointing and remunerating senior staff [Word, 26Kb], Appointing Heads of HEIs: A Resource for Governors and Appointing Senior Staff in HEIs.