Understanding the salary gap between academic faculty and top administrators: a New Public Management perspective

Abstract

ABSTRACT Do university administrators receive significantly higher remuneration than faculty members? Can the adoption of New Public Management (NPM) principles in higher education governance contribute to a more equitable allocation of resources? This study aims to address these questions by examining a sample of Russian public universities from 2018–2021. The analysis focuses on the salary gap between university administrators, specifically rectors and vice-rectors, and faculty members. The study explores both institutional and leader-related factors that contribute to this salary gap. While NPM proposes the implementation of incentive contracts and control mechanisms to enhance organisational performance, the findings indicate that the salary gap is more pronounced in research-oriented universities. These results suggest that top-level managers are rewarded for the exceptional performance of faculty members, which contributes to an increasing income disparity that may adversely affect perceptions of fairness within higher education organisations.