Two former principals at the University of Dundee have received payments totalling more than £290,000 after leaving their posts, despite a severe financial and governance crisis that has plunged the institution into turmoil. The university's long-delayed 2023-24 financial statements reveal that former principal and vice-chancellor Professor Iain Gillespie was paid over £152,000 after ceasing work in December 2024. This sum covered his contractual six-month notice period, and the university also contributed towards his legal costs.
Interim Principal's Severance
Professor Shane O'Neill, who served as interim principal for approximately seven months after Professor 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 compensation for accrued annual leave. The Liberal Democrats criticised both men, stating they "clearly feel no shame about their role in the turmoil" at the university, adding that "if they did, they would have returned these payments without delay."
Financial Warnings and Governance Failures
The financial statements 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 as "the greatest crisis the university has ever seen." They acknowledged "mistakes of leadership, financial management and governance" that led to the crisis. The report highlighted a potential operating deficit of around £30 million for 2024/25, with warnings that further significant cuts would be necessary. It noted "serious failings in financial monitoring, management and governance" and stated that the university's response to mounting financial pressures "fell well short of the standards required" by higher education governance rules.
Job Cuts and Savings Required
Last month, the university announced a formal consultation on proposals for an additional 190 job cuts, following the loss of 645 roles in recent years. Despite these reductions, the accounts indicate that further savings of between £20 million and £25 million are still needed, with most expected to come from staffing costs. The university has received significant public support, including £40 million from the Scottish Government, as it attempts to recover.
Political Reaction
Lib Dem MSP Willie Rennie commented: "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."
