University College Dublin could be facing a substantial loss of income in the coming years, following a decision by the school of business to review the annual dividends it pays to the university.
In a recent interview with the Irish Times , Niall Fitzgerald, the former head of corporate powerhouse, Unilever, indicated that the school would have to review how best to use its resources, and indicated that this could mean a cut in the yearly dividend it pays to it’s parent university.
“The entity today is profitable as a standalone school of business, but much of its surplus goes to the rest of the university. We need to refine the strategy for the next five to 10 years,” Fitzgerald stated.
He went on to express that the figure payed to UCD would “probably” need to be reduced, because the business school would “decline if we continue to do what we’re doing,”
Accounts for the year 2012/2013 show that the school of business made a surplus of €9.5 million on an income of €48.2 million, and that €8 million of this was returned to the university, with €1.3 million retained for investment.
Fitzgerald assumed the position of chair at UCD’s Michael Smurfit Graduate Business School late last year.