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The New Zealander who sparked a rebellion among Oxford University's dons over plans to curtail their powers is stepping down as vice-chancellor when his contract ends in 2009.
Former Auckland University head John Hood, the first person from outside Oxford's academic body to be elected to the top job in the English institution's 800-year history, has decided not to take up the option to extend his tenure for two more years.
"I continue to believe that five years is the right period. That was the commitment I made on my appointment as vice-chancellor and it remains my view today. That will be the appropriate time for me to hand on the immense privilege of leading this great university."
Dr Hood, who spent 18 years working in senior positions with Fletcher Challenge and as a director of ASB Bank and Fonterra before joining Auckland University, moved to Oxford in 2004 to tackle the university's chronic financial problems.
His radical plans to overhaul the organisation were killed off by a rebellion of dons, who accused him of failing to understand the university's long-established traditions.
They especially objected to his idea of regular reviews linked to their pay, with penalties for underperformers.
He also proposed to chip away at the traditional independence of the university's 39 colleges.
Dr Hood has written to the chancellor of the university, Lord Patten of Barnes, confirming his intention to step down in September 2009 rather than carrying on until 2011.
Lord Patten said Dr Hood was doing a remarkable job. "Two of the hallmarks of his tenure are the clarity of his vision and the strength of his commitment.
"Both are powerfully present in this decision, which allows the university to plan for the future and continue to benefit from John's outstanding leadership for the next two years without unnecessary distraction."
In the latest international university rankings published last week, Oxford rose from third to joint second place behind Harvard in the US.
But it still has unresolved money problems, which Dr Hood is tipped to focus on in his last two years.
Before his arrival, the university had been running up an annual deficit of $75 million on its teaching and $183 million on research. It also admitted to being bailed out by the profitable Oxford University Press publishing business. Dr Hood intends to work in business when he leaves Oxford.
- Independent