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"It is important to stress that the decision of the senior remuneration committee was rescinded at a meeting of full council on 17 January, where independent external legal advice was received and a new decision was reached.
In a statement issued after the meeting, Labour councillors said they "apologise, accept and wholly understand the concerns expressed by staff, trade unions and members of the public for the recent senior remuneration pay decision by a unanimous vote of a cross-party delegated committee".
A council spokesman said earlier: "It is important to stress that the decision of the senior remuneration committee was rescinded at a meeting of full council on 17 January, where independent external legal advice was received and a new decision was reached.
Assistant auditor general Anthony Barrett said: "I have concluded that the decision by the senior remuneration committee on 5 September 2012 to approve the pay structure set out in the report of the chief executive was unlawful on a number of grounds".
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"The time has come for the lid to be lifted on the hitherto murky world of remuneration committees and senior pay in our universities", she said.
Whereas the traditional literature assumes that debt is senior to remuneration, there are in reality many cases in which remuneration contracts are de facto senior to debt claims in financially distressed firms and in workouts.
"Getting pay wrong damages popular trust in business and undermines the duty to promote the long-term success of the company," Cable said, in a letter to directors who chair the remuneration committees that set senior pay at the UK's largest companies.
Senior management remuneration reports should be published before their discussion.
A senior management remuneration committee now exists to scrutinise any payments of more than £150,000.
Find out more about setting senior staff remuneration at NCVO's breakfast workshop on Wednesday 28 May 2014.
A spokesperson added: "As senior staff remuneration is reported in Edge Hill University's annual accounts - which is a public document, published and available to everyone on the university website - there was no requirement for the information to be requested using FoI legislation".
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CEO of Professional Science Editing for Scientists @ prosciediting.com