Dundee University principals paid nearly £300,000 after stepping down

Two former principals at a crisis-hit university received payments totalling more than £290,000 after leaving their posts, despite a financial and governance crisis plunging the institution into turmoil.

The University of Dundee’s long-delayed 2023-24 financial statements show former principal and vice-chancellor Professor Iain Gillespie received more than £152,000 after he stopped working at the institution in December 2024.

The payment covered his contractual six-month notice period, and the university also contributed towards his legal costs.

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 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”.

The report raised serious concerns about the institution’s future, warning 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 said they recognise “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.

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 £20m and £25m are still required, with most expected to come from staffing costs.

The university has received significant public support as it attempts to recover, including £40m from the Scottish Government.

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.”