The Vice-Chancellor of De Montford University, Dominic Shellard, has resigned over business links he had with the chairman of the university’s remuneration committee, Anthony Stockdale.

Shellard owned shares in the Metamorph Group, a holding company run by Stockdale, who approved a 22.4% salary increase for Shellard, the largest pay rise of any UK University Vice – Chancellor this year and one that bought Shellard’s salary to £350,000. Following Shellard’s resigning Stockdale has resigned his post on the university’s governing board.

The Office for Students watchdog has now launched a probe into “regulatory matters” at De Montford.