As the economy declines and college tuition rises, presidents of public universities nationwide took home salaries that averaged 7.6 percent higher in 2007-2008 than the year before.
Fourteen presidents of public research universities took home at least $700,000 in 2007-2008, up from eight and nearly one-third now earn more than $500,000, according to the annual Chronicle of Higher Education executive compensation survey released today.
And this when public universities increased tuition an average of 6.4 percent this fall, according to figures from the College Board.
Median pay of presidents at public universities is getting closer to the higher pay at private research universities. But even as pay goes up, some presidents are refusing or donating some money as their institutions face difficult economic times.
Jeffrey Selingo, editor of the Chronicle, said college presidents' salaries always get scrutiny.
But in times of economic crisis and rising tuition, he said, "students, parents, trustees and lawmakers are likely to take a closer look at whether presidents are worth the cost, given how worried families are about affording tuition as everyone is feeling a bit poorer."
The salary increases reflect contracts signed before the economy turned sharply downward, and the boards that govern colleges argue that retaining top talent is even more critical during a crisis.
The report is based on 2007-08 figures for public universities and 2006-07 for private institutions. It includes 184 public universities and public university systems and 599 private colleges. It also includes 64 community colleges and community college systems but none in Pennsylvania.
Consider this:
The president of Chatham University, which has nearly 2,200 students, earned more in total compensation than the heads of two of the state's largest universities, Penn State and the University of Pittsburgh. Esther Barazzone earned $734,576 in total pay, including deferred compensation, in 2006-07.
How much some presidents make won't be known for sure until their contracts or tenures are up because some include conditional deferred compensation, aimed at inducing a president to stay. Then-Vanderbilt University Chancellor E. Gordon Gee gave up more than $1 million in deferred compensation counted in this year's rankings when he left Vanderbilt. Now at Ohio State University, he ranks No. 1 among public university presidents with pay of $1.3 million.
One sign of the times is the college presidents who have turned down money. James R. Ramsey, president of the University of Louisville, this year decided to take the same raise as everyone else at the school, $700, instead of a six-figure bonus.
In the report, the highest paid college head was David Sargent, president of Suffolk University in Boston, at $2.8 million in total compensation in 2006-07. Mr. Sargent, 77, who remains on the job, has worked at the university for 52 years, including two decades as president.
The figure includes base pay of $436,000; a longevity bonus of $436,000; a deferred sabbatical bonus of $1.2 million; deferred compensation of $555,667; performance bonus of $87,200; and various benefits of $56,262.
The Chronicle reported that university officials said the package was aimed at making up for "woefully" underpaying him for years and encouraging him to stay.
In the rankings, Chatham's presidential pay was fifth-highest among master's institutions.
Murray Rust, board chair at Chatham, said Dr. Barazzone, who became president in 1992 and whose current contract expires in 2011, is worth the money.
"When she was hired, the college was in a serious financial crisis," he said. "Chatham has done an incredible turnaround under her leadership. She's done an absolutely remarkable job, surrounded herself with good people and is the kind of leader that many institutions would love to have."
When Dr. Barazzone was hired, Mr. Rust said, the college underfunded her pension. Her new contract is aimed at correcting that so her pension would replace about half of her pay. To do that, the college is contributing $197,000 a year for five years if she stays through her contract.
One of those deferred payments shows up in the 2006-07 total, as does a $190,000 payment for two sabbaticals she didn't take. Her salary alone was $299,211.
In the same ballpark as Dr. Barazzone was Richard Cook, who served as president of Allegheny College from 1996 to this summer. His total compensation of $701,319 included $300,000 in deferred compensation and $88,319 in benefits.
That ranked second among baccalaureate institutions.
Chris Nelson, chair of the Allegheny board of trustees, said the $300,000 is equivalent to $25,000 for each year of Dr. Cook's service.
"Thanks to his 12 years of service, Allegheny now has a stronger endowment, optimal enrollment, record retention rates, innovative new programs and many physical campus improvements," she wrote in an e-mail.
Scott Friedhoff, vice president for enrollment and communications at Allegheny, said that the former president and his wife have contributed more than $500,000 to Allegheny and continue to be "generous donors."
Among public universities nationwide, the chiefs listed in Pennsylvania ranked as follows for total compensation:
Graham Spanier, Penn State University president, $611,367, 22nd.
Mark Nordenberg, University of Pittsburgh chancellor, $590,200, 30th.
Ann Weaver Hart, Temple University president, $572,900, 35th.
Judy Hample, now former chancellor of the State System of Higher Education, $364,865, 126th.
Tony Atwater, president, Indiana University of Pennsylvania, $269,094, 173rd.
Overall, the median total compensation of college presidents of public universities was $427,400, a 35.6 percent increase over five years after inflation is considered.
The presidential pay grew at a faster rate at public institutions than private ones.
At private research universities, the median total compensation was $527,172, an after-inflation increase of 18.6 percent over five years.
Total compensation at private master's institutions was $258,636, an increase of 21.6 percent; and for private liberal arts colleges, $293,967, an increase of 18 percent.
The one-year change in the median pay was from 6.5 percent to 7.6 percent except for private research universities, where it slipped 0.2 percent.
