Presidents' salaries near million dollar mark

A recent report by The Chronicle of Higher Education revealed college presidents' salaries have skyrocketed in the last several years, propelling the total compensation of many within close proximity of the million-dollar range.

The increase has led some universities to question what they are paying for, and whether they are receiving good value for their money. Selecting criteria upon which a university can base its president's salary is an imprecise and difficult process, former Harvard President Derek Bok told the Chronicle.

Because so many people and factors contribute to traditional measures of success, such as the university's ranking, it is nearly impossible for trustees to pinpoint the president's influence in this collective effort, he argued.

At Tufts and most colleges around the nation, the Board of Trustees determines the president's salary annually based on report from the Compensation Committee. It bases its recommendation on background information provided by an outside consultant. "First and foremost, the President's compensation is based on his performance," Tufts Board of Trustees Chairman James Stern said. He heads the committee and said the Board also looks to other institutions for comparison.

Last year, the Board of Trustees awarded President Larry Bacow a salary of $365,990. When combined with a benefits package of $48,485, Bacow's total compensation of $414,475 was slightly lower but comparable to the salaries of presidents at several peer institutions.

According to the Chronicle's report, several college presidents, including Dartmouth President James Wright and Harvard president Lawrence Summers received more than Bacow, earning $444,894 and $487,687 respectively.

Some presidents earned less. Northeastern awarded its president Richard M. Freeland $408,058, and Brandeis President Jenuda Reinharz received $373,594.

Maintaining presidential salaries at a comparable yet competitive level with peer institutions is an important consideration for many universities. "I wouldn't call [Freeland's] salary excessive." Northeastern Assistant Director of Communications Christine Phelan said. "My sense is we're generally on par with the colleges we consider our peers."

However, there is a "great disparity" among the salaries of presidents nationwide, Phelan added.

Some institutions, such as the Rensselear Polytechnic Institute (RPI), pay their presidents far more than most other universities. Last year, the Chronicle named RPI's Shirley Jackson the highest paid university president in the nation. Last year Jackson received $891,400. When combined with the $500,000 she made serving on several corporate boards, Jackson's total compensation was nearly 1.5 million dollars last year.

The head of Boston University (BU) is not far behind. Chancellor John Silber earned $807,229 last year.

BU Director of Media Relations Colin Riley stressed the importance of individual contributions and longevity of tenure in determining the president's salary. "Silber transformed [Boston] University" and had served the institution for over 30 years, Riley explained. "BU has been around for 174 years, and so far [it has] had eight presidents," he said. "That speaks to a factor in considering how things are done here."

Competition also affects the amount presidents receive. "Universities compete for excellent people just as for-profit corporations do. We look at the market and adjust our salaries accordingly," Tufts Executive Vice President Steve Manos said. "Some institutions are at the extreme high end of the scale," he added.

BU is among the institutions populating the "high end" of salary spectrum. BU has invested nearly $2 million in its search for its next president. Before he even began working, BU paid Daniel Goldin $1.8 million to step down from the presidency. The trustees chose to pay Goldin to leave because they lost faith in the efficacy of their newly selected president, the board said in a press release.

"They did a very courageous thing," Riley said. "They acknowledged their errors and did what they could to fix them to ensure that the University hired the best possible candidate."

Riley said the goal of an educational institution such as BU is to provide opportunities to all students. "The person who makes that happen is the president because he oversees this very complex institution," she said. Therefore, finding the perfect president is important to the continued success of the university.

Manos rejected claims that devoting attention and money to the presidency could exacerbate tensions between the administration and faculty members. "There are markets for deans and faculty members as well as presidents. We study those markets and make similar adjustments in order to recruit and retain good people," she said. "Faculty members and senior staff understand the situation and have no problem with it."

While the average full professor makes $300,000 less than Bacow does each year, several distinguished faculty members make salaries comparable to his. Maria Papageorge, Professor and Chair of Oral and Maxillofacial Surgery at Tufts Dental School, received $402,655 last year. Dean of the Medical School John T. Harrington received a salary of $341,146.