Two former principals at the crisis-hit University of Dundee received payments totalling more than £290,000 after leaving their posts, even as the institution plunged into financial and governance turmoil. The long-delayed 2023-24 financial statements show former principal and vice-chancellor Professor Iain Gillespie received more than £152,000 after he stopped working in December 2024. This payment covered his contractual six-month notice period, and the university also contributed towards his legal costs.
Interim Principal Also Received Six-Figure Sum
Professor Shane O’Neill, who served as interim principal for about seven months after Prof Gillespie’s departure, received more than £141,000. This included salary and pension contributions during a six-month notice period, a payment in lieu of notice, and payment for accrued annual leave.
The Liberal Democrats condemned the payments. A party spokesperson said both men “clearly feel no shame about their role in the turmoil” at the university, “because if they did, they would have returned these payments without delay”.
Financial Statements Reveal Grave Concerns
The report raised serious concerns about the institution’s future, warning that “a material uncertainty exists in relation to the university’s ability to continue as a going concern”. Chairwoman of the university court Esther Roberton and interim principal Professor Nigel Seaton described the situation facing Dundee as “the greatest crisis the university has ever seen”. They acknowledged “mistakes of leadership, financial management and governance” which led to the crisis.
The report showed a potential operating deficit of around £30 million for 2024/25, with warnings that further significant cuts would need to be made. It highlighted “serious failings in financial monitoring, management and governance”, and stated the university’s response to mounting financial pressures “fell well short of the standards required” by higher education governance rules.
Job Cuts and Required Savings
The institution said last month it would open a formal consultation on proposals for another 190 job cuts, which follow the loss of 645 roles in recent years. Despite the reductions, the accounts show further savings of between £20 million and £25 million are still required, with most expected to come from staffing costs. The university has received significant public support as it attempts to recover, including £40 million from the Scottish Government.
Political Reactions
Lib Dem MSP Willie Rennie said: “Whilst hundreds of university staff face the loss of their jobs, Professor Gillespie and his successor were paid despite failing to do their jobs. The delayed accounts reveal an institution in deep trouble which was in part caused by the failure of leadership. It is also a reflection of the broken government funding model that must be replaced. This chaos shows that it is essential that there are strong accountability and scrutiny processes for these large institutions that handle a lot of public funds.”
Education Secretary Mairi McAllan said: “It is well documented that the University of Dundee faced unacceptable financial mismanagement which led to its financial crisis. The Scottish Funding Council (SFC) will continue to support the institution as it recovers, and I am clear this must be done through full and proper engagement with staff and students. More generally, whilst responsibility for pay and remuneration is for individual universities as autonomous institutions, I expect all institutions to exercise restraint in setting principals’ pay in step with the salary, terms and conditions offered to other staff. Whilst the situation in Dundee was unique, we have already established a new joint initiative with Universities Scotland to develop a Future Framework for all universities, ensuring they are supported and sustainable for the years ahead, and education spokespeople from all parties that formed the last Scottish Parliament had the opportunity to shape this work. The Parliament also passed the Tertiary Education and Training Act this year which will strengthen the financial governance and transparency of colleges and universities.”
