The salaries of public and private university presidents are rising rapidly, according to The Chronicle of Higher Education's annual executive compensation survey.
In fiscal year 2006, the most recent data available for private institutions, 81 private-institution presidents made at least a $500,000 per year salary, representing a 200 percent increase since 2001, the survey showed.
Public institutions also saw an increase. Fifty-six presidents of public universities made more than $450,000 during fiscal year 2007, including seven presidents making upwards of $700,000. Just the year before, only two presidents broke the $700,000 mark, according to the survey.
Though the current president of AU, Neil Kerwin, was not among the highest paid university presidents, former AU President Benjamin Ladner was the highest paid university president of the 2005-2006 school year, the Chronicle stated.
Ladner made $4,270,665 at the time of his departure in regular salary, deferred compensation, severance pay, incentive pay and other benefits, according to the Chronicle.
Following the departure of Ladner, then-Interim President Neil Kerwin made a $420,766 salary in fiscal year 2006, according to a searchable database of executive compensation on the Chronicle's Web site. This year, which is Kerwin's first as president, he will be paid approximately $475,000. In comparison, Ladner was paid $881,696 during the 2004-2005 academic year, his last full year at AU.
Many factors go into how the board of trustees determines Kerwin's salary, according to David Taylor, presidential chief of staff.
"The board of trustees determines what a reasonable salary for any president of AU is to earn," Taylor said. "[Some of the factors in determining a salary include] what the best compensation for a president is based on AU's size, complexity and what comparable universities pay their presidents."
Kerwin is getting paid the right amount of money, said Jenna Lichtenstein, a sophomore in the Kogod School of Business.
"I don't think that he will have less of an incentive [to perform well] because if he is dedicated to the well-being of this university and improving the status of the university, then he will put in just as much work as any other person, regardless of the salary," she said.
Presidents no longer serving at their institutions but still on the payroll receiving severances, pensions or deferred compensation had much bigger paychecks. Topping that list was former Lynn University President Donald E. Ross, who received a $5 million retirement package when he left in 2006 after 34 years of service. Ladner came in second, receiving $4.3 million in severance and deferred compensation in fiscal year 2005-2006 following his separation from the university in October 2005.
University presidents are overpaid, said James Wigley, a freshman in the College of Arts and Sciences.
"When university presidents are getting paid more than the president of the United States, there has got to be some limit on the salary they earn for what they do," he said. "Managing a university is a hard job, but it is not like managing a country."
University presidents don't need to be paid large sums of money to perform well in their posts, Lichtenstein said.
"University presidents are being overpaid because they should want to work for the welfare of the university and their students and faculty at any salary," Lichtenstein said. "The money instead can go towards new programs, as well as financial aid. It could go towards making the university better"
