IBJNews

Recession takes toll on university president pay

Back to TopCommentsE-mailPrint

The recession has reached the executive suites of the nation's public universities and colleges, putting a stop to a string of large annual pay increases for school presidents.

A survey released Monday by the Chronicle of Higher Education showed compensation packages of chief executives at public schools leveling off in 2008-2009, rising a relatively modest 2.3 percent. One in 10 saw their pay decline. Some who did get raises or bonuses gave the money back to their schools.

In Indiana, leaders of the state's largest four-year colleges all received raises.

Indiana University President Michael McRobbie is the best-paid public college leader in the state, according to the Chronicle data, with total compensation of $541,125, up 12 percent from the previous year. His base pay of $425,000 was augmented by a $30,000 state-funded housing allowance and $86,125 in deferred compensation and retirement pay.

Purdue University’s France Cordova was next, with $529,000 in total pay including $79,000 in deferred compensation—up 6 percent from 2007-2008..

Ball State University Jo Ann Gora’s compensation totaled $425,130, with $68,730 in deferred compensation, retirement pay and club dues, according to the Chronicle. That was 9 percent more than the previous year.

Thomas Snyder, president of Ivy Tech Community College, saw his compensation decline by 1 percent thanks to a drop in his retirement pay. His $300,000 salary remained the same.

Presidential salaries at public universities and colleges have come under greater scrutiny as many bursting-at-the-seams schools raise tuition to offset steep declines in state funding.

The latest figures show that the economy and fears of a backlash over perceived high salaries are trumping—at least for now—the argument that public schools need to pay top dollar for top talent.

"Students and families have had to tighten their belts, so I bet they'll appreciate seeing some restraint among college presidents," said Sen. Charles Grassley, R-Iowa, a critic of executive pay at colleges and not-for-profits. "Holding off on raises is in sync with the reality for families trying to pay for college in the midst of high unemployment and the worst economy in decades."

Over the previous six years, annual pay increases of 10 percent or more became the norm for many public school presidents. So while base salaries rose for two-thirds of top executives in the 2008-2009 survey of 185 public universities and community colleges, the dollars involved were significantly smaller.

The median compensation package for public school top executives in 2008-2009 was $436,111. Eleven public university presidents earned $700,000 or more, down from 15 the previous year.

"If you got a 2 percent increase, that's more than a lot of faculty got," said Patrick Callan, president of the National Center for Public Policy and Higher Education in San Jose, Calif. "A lot of faculty were furloughed. I'm glad to see the restraint but it's about what you'd expect given the political pressures."

The pay slowdown can be explained both by the recession and greater scrutiny at a time when public schools are under tremendous pressure, said Jeffrey Selingo, editor of the Chronicle of Higher Education.

State tax support for higher education declined 1.1 percent nationwide in 2009-2010—a drop that would have been much more severe without federal stimulus dollars, according to a separate report Monday by the Center for the Study of Education Policy at Illinois State University. Public colleges in Indiana have had their budgets trimmed by the General Assembly and are facing another $150 million in cuts.

Nationwide, students are being asked to make up much of the difference. In-state tuition for students at four-year public schools rose 6.5 percent last fall over the previous year, according to the College Board.

Selingo said officials who set executive pay "are not giving raises because the money is not there, and presidents don't necessarily want to take big raises because they're worried when they go in front of student groups and parents and testify in front of legislators. They don't want their salaries to become the focus."

The trend to reign in pay increases will probably be short-lived, he said. If compensation at public schools keeps stagnating as pay at their private counterparts continues to rise, a backlash will erupt with public school presidents leaving and schools struggling to hire new ones, Selingo said.

The highest-paid president in this year's public school survey is Gordon Gee of Ohio State University, whose pay is worth more than $1.5 million including salary, retirement and deferred compensation.

Gee is the only executive on the list to earn more than $1 million. The millionaires' club in private higher education is much larger—a point raised by those who argue public school executives are underpaid given that their schools are typically bigger and more complex to manage, and huge state employers.

In the Chronicle's 2007-2008 analysis of private school presidents, a record 23 topped the $1 million mark. Median compensation rose 6.5 percent—15.5 percent at major private research universities.

Gee said he's "not defensive" about what he earns given, among other things, that he took a pay cut to move from private Vanderbilt University and Ohio State is a large and complex university.

"Some of it has to do, I hope, with my competence," Gee said. "I believe I have to earn that salary every day, so I work pretty hard ... Ohio State belongs to the people of Ohio. If on any given day they don't believe I'm earning what I earn, I'll be pumping gas in Vernal, Utah," Gee's birthplace.

Gee donated $1 million to a student scholarship fund when he returned to Ohio State in 2007—it's his second tenure at the school—and said he put his $200,000 bonus and $28,000 raise into the fund this year.

Other presidents have refused bonuses, requested salary freezes or given money owed them to student aid.

Rounding out the top five highest-paid public university presidents were Mark Emmert of the University of Washington ($905,004), Patrick Harker of the University of Delaware ($810,603), John Casteen of the University of Virginia ($797,048) and Francisco Cigarroa of the University of Texas system ($787,258).

Eduardo Padron of Miami Dade College was the highest paid community college top executive, with a $548,459 pay package.


ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. City-County Councilor Angela Mansfield and Bob Lutz have a case of wishful thinking.

    They obviously don't really care about the cost.

    They should.

    Extending Federal Benefits to Same-Sex Couples Will Cost $898M, CBO Says

    http://www.foxnews.com/politics/2009/12/22/extending-federal-benefits-sex-couples-cost-m-cbo-says/

  2. Brett, be careful what you lie about, the truth always comes out.

    "IMS's George Honored: Tony George, Indianapolis Motor Speedway president and chief executive officer, received the inaugural Pioneering and Innovation Award at the Autosport Awards Dec. 5 in London for his leadership in the development of the Steel and Foam Energy Reduction (SAFER) Barrier. George received the award at the annual gala at the Grosvenor House on behalf of the creators of the SAFER Barrier from Prince Salman Bin Hamad Al Khalifa, the leader of the Bahrain International Grand Prix circuit. This is the fourth major award that has been presented to honor George and the SAFER Barrier development team. The SAFER Barrier also received the Louis Schwitzer Award, SEMA Motorsports Engineering Award and GM Racing Pioneer Award in 2002. The SAFER Barrier was installed in all four turns of the Indianapolis Motor Speedway a pioneer in safety for drivers, cars and tracks -- in time for the 86th Indianapolis 500 in 2002. It since has been installed at more than a dozen other tracks, and the latest iteration will be installed at the Speedway in the spring.(IMS PR), see more on my Indy Track News page.(12-7-2004)"

    As far as the cart safety team, I cannot find anything on its date of creation. The Delphi Safety team was created in 1996. For some reason there is not much info out there on defunct racing series.

  3. Great article Anthony. Glad IMS is finally being run like a business and not a personal check book to finance the "Vision".

    Things are looking up but 15 years of scorched earth won't be fixed overnight. Unfortunately the TV ratings are still poor and that won't change anytime soon with the brilliant 10 year contract signed under the former regime.

  4. Brett not sure why you wonder what he said in his quote. "''I would like to jump in a time machine, go back to 1995, and tell the owners and Tony George not to split,'' Franchitti said. ''As soon as my time machine is done, I know where I'm going.''"

    Pretty clear, he would love to go back and tell TG and the team owners not to split.

    I am not sure there is anyone who wanted the split, and I don't think there is anyone who would not like to go back and prevent the split. But, as has been discussed ad nauseum, without the split carts management by team owners would have run all of ow racing into bankruptcy. If cart had such a wonderful product, then losing IMS would not have forced it into bankruptcy. If NASCAR lost Daytona or Charlotte, it would not fail like cart did.

    Truth,

    So you predicted that cart would go into bankruptcy and cease to exist while Indycar would continue on? I missed that prediction.

  5. I want to live in a city that has a garage structure to be proud of for it's innovating design!

ADVERTISEMENT