Top CSU execs handed raises of as much as 18 percent (double that paid to Gov. Arnold Schwarzenegger

[Omaha Steve]

Jim Doyle, Chronicle Staff Writer

Thursday, September 20, 2007

The governing Board of Trustees of California State University gave approval Wednesday for executive pay increases ranging from 9 percent to 18 percent for Chancellor Charles Reed, his four top deputies and 23 campus presidents.

Reed, whose salary will go from $377,000 a year to $421,500 (plus a $30,000-a-year retirement bonus), said the latest salary increases are needed to begin to bridge a salary gap with other comparable institutions, public and private.

As of now, Reed's salary is more than double that paid to Gov. Arnold Schwarzenegger, who earns $206,500 annually. The governor's pay will go to $212,174 in December.

The trustees voted 14 to 2 to adopt the pay increases, which average 11.8 percent and will be retroactive to July 1. The majority also signaled its intent to raise executive pay by a total of 46 percent in the next four years.

To bolster the case for pay raises, Reed and trustee chairwoman Roberta Achtenberg have often cited a 2006 salary study by San Francisco's Mercer Human Resource Consulting, which has compared the salaries of 20 colleges nationwide, including elite private colleges such as Tufts University and the University of Southern California.

The Mercer study concluded that the salaries of top CSU executives lagged behind their counterparts at public and private colleges by 46 percent; but when the total compensation packages - including salaries, retirement benefits and perks such as free housing - were compared, CSU executives only lagged by 12 percent.

FULL story at link.