In the 2016-17 academic year, a dozen public college leaders were paid $1 million or more for their service, according to data from the Chronicle of Higher Education. More than 60 private college leaders made more than $1 million.
As executive compensation in academia continues to skyrocket, new research suggests that higher compensation has no correlation with revenue increases at our nation’s colleges and universities.
The study was completed by higher education researchers at Florida State University and the State Higher Education Executive Officers Association, a trade group for college governing board members.
Fundraising has become the primary job of most university presidents. As such, many universities hope to attract a charismatic leader, ideally with some name recognition, to draw some major donations. Research shows, however, that university funds don’t grow when we throw more money at our presidents.
“It’s clear that success in fundraising isn’t related in any way to compensation,” said James Finkelstein, a public policy professor at George Mason University, in an interview with MarketWatch.
Executive search firms advise their university clients to pay more in order to attract the best talent — and why wouldn’t they? In about one-third of their contracts, the firm’s fees are dictated by the president’s eventual salary.
With compensation levels on the rise, university presidential candidates have “lawyered up” to ensure they receive the sweetest deal possible, which in turn drives up their salary and benefit costs. It’s a vicious cycle and one that really only benefits college presidents (and their lawyers).
Another reason for the soaring compensation packages is the changing dynamics of governing boards. In the past, university governing boards were comprised of community members and alumni. As corporate donations increase, however, corporate executives have begun taking these seats and are bringing their own experience to the board room. This has caused college executive pay to align closer with private sector CEO pay.
Students have a right to look at this phenomenon with some outrage and disgust.
Back in 2016 when the Chronicle of Higher Education released its annual compensation data, MarketWatch found that the college presidents with the 10 highest salaries in either the public or the private school sphere earned at least 15 times the average salary of their students who received financial aid — ten years after they entered school. The highest-paid private college president, Jack P. Varsalona of Wilmington University, made nearly 130 times more than his average student several years after they would have graduated, while the highest-paid public college president, Michael R. Gottfredson of University of Oregon, made around 29 times more than his average student.
College presidents deserve to make a fair salary, but they also need to be provide sufficient value to justify their salary. Otherwise they provide one more reason to discredit academia.
Brendan Pringle (@BrendanPringle) is writer from California. He is a National Journalism Center graduate and formerly served as a development officer for Young America’s Foundation at the Reagan Ranch.
