'Breach of duty' over University of Aberdeen principal's payment

Prof Sir Ian Diamond announced his plans to retire in 2017

University of Aberdeen trustees were in "breach of duty" when reaching a six-figure retirement settlement with its former principal, the Scottish Charity Regulator (OSCR) has said.

Prof Sir Ian Diamond announced his plans to retire in 2017, but his 12-month notice period only began when he had actually left his post in 2018.

The university repaid £119,000 to the Scottish Funding Council, and has asked Prof Diamond to for a repayment.

The OSCR decided against taking action.

Prof Diamond became chief executive of the UK Statistics Authority after he retired from the university.

• Former university head asked to repay £119,000

• University repays £119,000 over principal pay-off

The Scottish Funding Council previously said the former principal's total remuneration disclosed in the financial statements for 2017-18 was more than £600,000.

Earlier this month, the university's governing body decided to "invite him to consider a repayment".

An OSCR report, which decided against any enforcement action, has now said: "We conclude that charity trustees who were members of the university's Remuneration Committee at the time of the events in question (summer 2017) were in breach of their trustee duty to act in the interests of the university.

"In particular, they failed to act with the care and diligence that it is reasonable to expect of a person who is managing the affairs of another person in respect of their conduct in agreeing the heads of terms of the severance settlement with the principal."

'New direction'

Esther Roberton, senior governor of the University of Aberdeen said: "The OSCR report acknowledges that the university has already taken proactive measures to enhance governance.

"It also notes that most of the charity trustees who were members of the University's Remuneration Committee at the time of the payment are no longer in post.

"The university has new leadership and a new direction.

"The University Court will meet shortly to consider the implications of the OSCR report together with the wider review of governance already under way."

On the matter or repayment, the University of Aberdeen added: "We understand that Prof Sir Ian Diamond is considering the university's request."