The new dean of City University's business school plans to increase pay offers to academics in a bid to attract quality staff.
David Currie said: "We will have to enhance the remuneration package we offer to academics."
He intends to hire new staff, but said that the market was growing increasingly competitive.
"If we were to stand still on salaries, we would suffer very considerable attrition over time; the market has got more competitive," he said, adding that a new financial PhD could command a starting salary of £75,000 at some business schools. "We are not going to be moving to that level very quickly, but we have got to make moves to attract the better-quality people."
He also said the school would benefit if the government loosened its hold on undergraduate fees. He said the business school would be likely to increase its fees to invest in its product.