Published: December 10, 2012
Private college presidents pay was up slightly
By JUSTIN POPE – AP Education Writer
Compensation for private college presidents has continued to drift upward, while the number crossing the $1 million barrier – a signal of prestige, and a magnet for criticism – held steady at 36, according to a new survey.
The latest annual compilation by The Chronicle of Higher Education covers data from 2010, due to lag time in the release of federal tax information. That year, median compensation for the 494 presidents in the survey – leaders of institutions with budgets of at least $50 million – was $396,649, or 2.8 percent higher than in last year’s survey. But median base salary fell slightly, by less than 1 percent.
The highest paid was Bob Kerrey, who was president of The New School in New York until December 2010 before returning to Nebraska, where he made an unsuccessful run to return to the U.S Senate. Kerrey’s total compensation was valued at just over $3 million. His base salary was just over $600,000, but he received the remainder in the form of a retention bonus, deferred compensation and other benefits.
The Chronicle reports this year that half the institutions that employed the 50 highest-paid college presidents in 2010 used a practice called “grossing up,” adding additional cash and benefits to compensation packages to make up for the taxes recipients pay. The practice has been largely abandoned at publicly traded companies due to shareholder criticism, but appears alive and well in the non-profit sector.