Ranks of millionaire college presidents up again

[bemildred]

Source: AP

The fast-growing group of millionaire private college and university presidents hit a new record in recent years, and it's likely more college leaders will make seven-figure salaries once the slumping economy rebounds.

A record 23 presidents received more than $1 million in total compensation in fiscal 2008, according to an analysis of the most recently available data published Monday by the Chronicle of Higher Education. A record one in four in the study of 419 colleges' mandatory IRS filings made at least $500,000.

Topping the list is Shirley Ann Jackson at Rensselaer Polytechnic Institute in Troy, N.Y., whose total compensation the Chronicle pegged at nearly $1.6 million. She was followed by David Sargent at Suffolk University in Boston, who made $1.5 million. However, one-third of his compensation had been reported as deferred compensation last year and counted as salary this year — an example of the difficulty of making straightforward compensation comparisons.

Overall, median compensation for the group rose 6.5 percent to $359,000, and 15.5 percent at major private research universities, to $628,000. The figures essentially cover the 2007-2008 academic year.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5jmPScsuz7zCFAOOK5zjempnTRLzQD9BNC39G0

[flyinzamboni]

1. Presidents vs Coaches

Very frequently, college presidents get attacked for taking a job that few people want and getting well compensated when they do a good job.

Grassley (R-Iowa) complains about college presidents getting paid so much. Yet at the University of Iowa, the football coach is getting paid roughly $3 million per year (this is not skewed by the retirement benefits as some of the other numbers for president's are - granted Iowa is having a great year in football and I do enjoy watching them play, but he was getting this even when Iowa was posting .500 records). The football coach has been the highest paid state employee in Iowa. The university president takes home less than 15% of what the coach does.

I would like to see more money going to getting the best teachers and researchers in schools. Presidents who are out raising money for the school may deserve to get paid a high amount if they are successful at attracting money to the school that the school would have not otherwise received. Perhaps, similar statements could be made about coaches...

As to the sports coaches frequently being the highest paid state employees, where are our priorities?

[AngryAmish]

Does Iowa football make money or cost money?

At U of I, men's football and basketball pays for all of the other sports.

[flyinzamboni]

13. It's not solely about whether the sports make money

If we only care about whether something makes money or not, then every single wall street pay package for profit making companies during the boom was fine.

Iowa football, most likely as well as Illini football (heck any Big Ten football; major conference football), would make money even if the team was bad. In fact, even if there was a terrible coach that only got paid $15,000 a year, Iowa football would still make money for the university.

Say for example that the coach is a horrible coach and Iowa football still makes $100 million a year (these numbers here are all made up). Then instead with a good coach, Iowa football makes $105 million a year. Does that make it ok to pay the good Iowa football coach $102 million per year? Iowa football would still be making money in this case... (I know this is an extreme example to make the point but just in case if you are ok with this, I would like to put you in a decision making capacity in whatever company I work for when I negotiate my pay package).

My point is it is the incremental effect that matters - for college presidents, for football coaches... A complaint about how much the university president makes when it is less than 15% of what the football coach makes without considering any of these incremental issues seems misguided to me (if the football coach being good brings in another $50m and there are few good football coaches, I can see good football coaches being paid quite a lot).

[imdjh]

4. obviously coaches are paid too much too

[imdjh]

2. revolting and ridiculous

[bunkerbuster1]

3. Dumb question about their Compensation--how many are funded by alumni associations?

I was, frankly, shocked to learn that the University of GA's president drew some of his salary directly from funds raised by former UGA students. That always seemed hideously corrupting; but I never thought to check to see how widespread this practice was.

Anyone know?

[Romulox]

5. This is why increasing student aid doesn't really help students.

University prices are set by supply and demand, not based on the amount of state aid received.

[No Elephants]

6. Stupid headline. Making a million or more a year is not the same as being a millionaire.

[Romulox]

7. Yes it does, unless you're a profligate spender...

I'd daresay most millionaires earn considerably less than a million dollars a year. :hi:

[Iowa]

11. I had the same thought...

The term "millionaire" typically refers to one's assets - not one's income. I see this error frequently.

There are millionaires who earn relatively modest incomes, and there are people with huge incomes who piss it all away and have a negative net worth.

[fascisthunter]

8. losers born on third base

that precursor gives them all the ego necessary not to be grateful for their positions of power, but to somehow think they deserved it.

[n2doc]

9. College presidents are really a different academic animal

They are there to bring in donations first and foremost. Prestige, or academic direction and rank, are generally nice but aren't what these folks are about. Keeping a successful big time sports program running smoothly, by picking the right AD, is also up there at many schools.

They justify Jackson's performance based on ten year comparisons, but they don't bother to say how those compare to other schools. The increases might have happened as a result of the growth in average grant sizes and student populations.

[Xenotime]

10. Many of these individuals give back to their community.

[JerseygirlCT]

12. Wow... yeah

including retirement benefits, the president of my school makes more than a million.

Nice to know all those tuition dollars we now send every year are supporting him so well...