DUNDEE UNIVERSITY was accused of rewarding failure today after shelling out almost £300,000 on principals who had left it with a £36 million financial black hole and hundreds facing redundancy.

Professor Iain Gillespie, who announced the deficit and promptly resigned as principal and vice-chancellor in December 2024, received more than £152,000 to cover his legal costs and contractual six-month notice, the institution’s accounts show.

His successor, Professor Shane O’Neill, who served on an interim basis for just seven months before the damning Gillies Report into the financial crisis led to his own resignation, received more than £141,000 afterwards in salary, pensions contributions and pay in lieu of leave.

The university has axed, 645 posts since 2024, with bosses recently unveiling plans for 190 more and compulsory redundancy remaining on the table, despite an unprecedented £40m Scottish government bailout.

In a statement, Dundee UCU has demanded a forensic audit of the accounts, greater transparency to prevent a repeat and made clear: “Scottish taxpayer money must not be used to fund redundancies.”

Dundee UCU co-president Ian Eliis said: “Failure shouldn’t be rewarded but, as always, we’re seeing those at the top and who led the university into its current difficulties looking after themselves, taking huge payments at a time when the university is facing existential financial difficulty and staff are losing their jobs.  

“Workers have been under the threat of compulsory redundancy for a year-and-a-half and with another 200 job cuts on the table, Iain Gillespie and Shane O’Neill should do the decent thing and return these payments which they don’t deserve.”

Education Secretary Mairi McAllan said: “I expect all institutions to exercise restraint in setting principals’ pay in step with the salary, terms and conditions offered to other staff.”