Written by Ann Vu
Photography by Ryan Lee
A recent investigation by i News in October 2024 saw the President and Vice-Chancellor of LSE claiming the highest spending of roughly £83,000, and the second-highest salary of £533,000, among leaders from top universities in the UK.
Of the £83,000 spent primarily by LSE’s previous President and Vice-Chancellor Baroness Minouche Shafik rather than* Professor Larry Kramer, £10,600 was claimed on hotels, while international flight expenditure accounted for over £50,000.
From April 2024 to June 2024, over £21,000 was claimed on the President’s flight to North America. Although LSE did not disclose how many flights were taken, an FOI release revealed that Business class is permitted when flights are greater than 6 hours or overnight given sufficient budget, according to LSE’s Travel and Expense policy.
An LSE spokesperson told i News, “The university is one of the most international universities in the world”, and “maintaining this array of international relationships and establishing new links with universities, businesses and nongovernmental organisations involves a significant amount of international travel.”
In response to the expenses claimed by their President and Vice-Chancellor, an LSE student reported feeling “ripped off” over the “extravagant” expenditure and earnings.
Another student shared that although these expenses amounted to “a lot”, they “make sense” given LSE’s status as a leading higher education institution.
The investigation comes amid growing concerns over a financial crisis in the higher education sector, prompting a rise in domestic tuition fees for the first time since 2017 from £9,250 to £9,535 for the commencing 2025/26 academic year. International students are also expected to experience an ever-increasing rise in tuition fees, having not been subjected to the same fee cap.
Despite these concerns, the salaries of Vice-Chancellors remain high, with their basic pay consistently being around 10 times greater than the median basic salary of all staff over the last five years. A member of the LSE University and College Union has also put into question this large pay gap between LSE leaders and staff members:
“I think there is quite a big [pay] gap between professional service staff and academic staff, as well as academic staff and management. This is present across all UK universities.”
“When you have these very big gaps, it can create tension and devalue other people’s labours. A lot of the union politics has been about bringing different pay grades more in alignment with each other.”
An LSE spokesperson said:
“LSE is committed to developing and supporting our exceptional academic and professional services staff. In recognition of this, the School recently invested in pay increases and a financial reward package for all staff representing £100m over seven years.”
“LSE is one of the most international universities in the world. Around two-thirds of our students are from overseas, coming from over 145 countries worldwide, and we have a network of over 190,000 graduates in more than 180 countries. LSE also has formal academic partnerships with universities in New York, California, Milan, Paris, Singapore, Cape Town, Beijing and Shanghai.”
“Maintaining this array of international relationships and establishing new links with universities, businesses and non-governmental organisations involves a significant amount of international travel. All flights booked through LSE include high-quality carbon offsets, which are reflected in the overall cost.”
*In addition, an LSE spokesperson clarified the following on remuneration:
“The former President and Vice Chancellor (Minouche Shafik) didn’t receive £533,000 in payments. A significant part of the reported remuneration figure relates to a central London accommodation already owned by the School.
Accommodation is provided to every LSE Vice Chancellor with the condition that it is a venue for events, fundraising and meetings for the wider School community. The property is funded from a historic legacy.”
