The number of colleges paying £200,000 or more for their chief executives grew by more than a third last year, with the total nearing 100, FE Week analysis shows.
Three leaders now sit in the £300,000 club – one more than the previous year.
FE Week’s annual investigation of college boss pay packages shows a relatively equal gender split among the highest-paid leaders, rising numbers of performance-related bonuses, and one six-figure severance payout for the principal of a college that almost went insolvent.
The analysis is based on the Department for Education’s annual college accounts database for 2024-25, published last week, and cross-referenced with individual published financial statements.
It focused on total remuneration, rather than just take-home pay, because some colleges report payments in lieu of pension separately, while others include them within basic salary. This can distort salary comparisons.
Data for just over 200 colleges was available, including general FE colleges, sixth-form colleges and land-based colleges. We excluded colleges that had multiple principals in 2024-25, leaving about 180 institutions in the analysis.
£300k club expands
Last year’s college principal pay investigation found 71 colleges spent £200,000 or more remunerating their accounting officer in total.
That figure rose to 97 in 2024-25.
Gerry McDonald, who runs New City College in London, retained his position as the highest-paid principal in the country. He received a total remuneration package of £347,000, made up of a £273,000 basic salary, a £17,000 bonus and a £57,000 payment in lieu of pension.
This was 9 per cent higher than the year before. The increase was driven mostly by the addition of a performance-related bonus, awarded in the year McDonald’s college group was judged ‘outstanding’ by Ofsted. His basic salary increased by £10,000, or 4 per cent.
New City College is one of the largest college groups in the country, teaching almost 20,000 students in 2024-25 and generating income of almost £140 million.
The second highest-paid college CEO was Gary Headland, who leads Oxfordshire-based Activate Learning and received £310,000 last year. This comprised a £220,000 basic salary, a £26,000 bonus, £12,000 in benefits in kind and £52,000 in pension contributions.
Headland’s total remuneration was £6,000 lower than in 2023-24, largely because his bonus fell by £5,000. His basic salary was unchanged.
Activate Learning teaches about 17,000 students and generated total income of £113 million last year.
Entering the £300,000 bracket for the first time was John Thornhill, the CEO of Manchester’s LTE Group. He earned a £232,000 basic salary, a £18,000 bonus, £8,000 in benefits in kind and received £42,000 in pension contributions.
This compared with a £290,000 remuneration package the year before. The increase was driven mainly by a 3 per cent rise in his basic salary, which stood at £225,000 in 2023-24.
LTE Group runs The Manchester College as well as seven other education and training organisations across England and Wales, collectively supporting about 50,000 learners each year. The group generated total income of £196 million in 2024-25 – more than any other college group in the country.
The analysis showed that, on average, CEOs’ basic salaries were five times the median salary of employees at their colleges.
The pay multiples for the three highest-paid leaders were higher: McDonald’s was 7.22, Headland’s was 6, and Thornhill’s was 6.6.
David Hughes, chief executive of the Association of Colleges, said college governing bodies “take seriously their role to ensure that decisions about pay for senior leaders represent good value for money”, adding that remuneration packages are “defensible relative to the wider public sector market”.
“They commonly use benchmarks from within and outside of the sector and this is closely monitored by DfE officials who use the managing public money guidelines to ensure pay is set fairly and proportionately,” he added.
Pepe Di’Iasio, general secretary of the Association of School and College Leaders, said: “Colleges are large, complex organisations which clearly require leaders with substantial experience and expertise. It is therefore to be expected that salaries will reflect the significant demands of these roles.”
Gender balance
FE Week’s analysis found 54 (56 per cent) of college leaders with remuneration packages totalling £200,000 or more were men and 43 (44 per cent) were women.
A separate analysis of academy trust CEO pay by FE Week’s sister publication Schools Week found that just a quarter of the highest earners were women.
Hughes said he was “pleased to see that there is a relatively equal gender split in pay at senior levels across colleges, reflecting the values of a sector that supports equality and fairness”.
The highest-paid female CEO in colleges in 2024-25 was Angela Joyce, who leads Capital City College in London. She received £287,000 in total remuneration, including a £223,000 basic salary and £64,000 in pension contributions. This made her the fourth highest-paid college leader in the country.
Capital City College taught about 28,500 students last year and generated an income of £137 million. Joyce’s basic pay multiple was 4.74.
Liz Bromley, who leads NCG, was the second highest-paid woman and the fifth highest-paid college CEO in England in 2024-25.
Her total remuneration reached £286,000, made up of a £227,000 basic salary, £21,000 in benefits in kind and £38,000 in pension contributions.
NCG operates across the north, midlands and London. It educated 35,000 learners last year and generated income of £187 million – the second highest total among college groups in England.
Bromley’s basic pay multiple was 6.8.
Bonuses on the rise
The DfE’s college accounts database showed 23 performance-related payments and bonuses were awarded to CEOs in 2024-25, totalling £296,000.
This compares with 17 bonuses in the previous year, worth a combined £209,000.
Gary Headland of Activate Learning received the largest bonus of £26,000 in 2024-25, followed by Alan Pease of Suffolk New College, who received £24,000, and Lawrence Wood of Telford College, who received £23,000.
Colleges have been required to seek government approval for bonuses above a certain threshold since public-sector reclassification took effect in 2022. The threshold was originally set at £17,500 but increased to £25,000 in July 2025.
Activate Learning’s accounts said Headland’s bonus was assessed “against the objectives set by the corporation board and in line with his contractual entitlement”, which is exercised at the board’s “full discretion”.
Suffolk New College’s accounts said Pease’s performance was “measured by the review of the targets set, undertaken by the chair of corporation, with evidence to support achievement and subsequent report of the outcome to the remuneration committee”.
Telford College’s accounts said Wood’s remuneration was justified because he “continued to perform well in 2024-25 with a number of strategic initiatives being progressed which will continue the growth of the college, whilst maintaining the college’s objectives of delivering quality teaching and learning provision to all students”.
“This is in addition to work undertaken in respect of continuing to develop local partnerships, securing further opportunities for the local community and maintaining the college’s outstanding financial health,” Telford’s accounts added.
£136k payout for boss of college that almost went insolvent
There was one standout severance payment for loss of office in 2024-25. Dawn Whitemore received £136,000 from the now-merged SMB Group when she retired.
The SMB Group was flagged as an insolvency risk in 2024 and was being supported by emergency funding following a “turbulent” period. It merged with Loughborough College in August 2025 to create a solvent college group under Loughborough College’s leadership.
Whitemore, who had led SMB Group since 2018, stepped down when the merger took effect.
SMB Group’s accounts are not publicly available, but the DfE’s accounts database suggested Whitemore received the £136,000 severance payment on top of her usual £150,000 salary in 2024-25.
Loughborough College Group told FE Week it was unable to comment on individual severance packages, but added that any payments made would have been in line with contractual agreements and DfE guidance on senior pay.
Colleges must seek DfE approval for severance payments above £50,000.