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 being released today by the Chronicle of Higher Education showed compensation packages of chief executives at public schools leveling off in 2008-09, rising a relatively modest 2.3 percent.
One in 10 saw a cut in pay. Some who did get raises or bonuses gave the money back to their schools.
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 other nonprofits. “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 2008-09 survey of 185 public universities and community colleges, the dollars involved were significantly smaller.
The median compensation package for public-school top executives in 2008-09 was $436,111. Eleven public- university presidents earned $700,000 or more, down from 15 the previous year.
