Dive Brief:
- The heads of public colleges in Texas boast some of the highest salaries of any college leaders in the nation, according to The Chronicle of Higher Education, which reports two college system heads and one president each pocketed $1 million or higher last fiscal year — and there were seven executives earning more than $700,000.
- Critics say that the massive salaries and bonuses at Texas universities can make it harder for public colleges and universities in smaller states to compete, but supporters say it is a result of a strong economy, generous alumni, and an attitude that the biggest can often signify the best.
- However, Michael M. Crow, the president of Arizona State University, was actually the highest paid executive of any public higher ed institution in the country last year, earning an $838,458 base salary along with a $150,000 bonus and a $550,000 payout offered as part of a 10-year retention plan.
Dive Insight:
As colleges and universities face declining enrollment, reduced budgets and rising tuition rates, college administrators and school leaders need to consider if there may be detrimental effects to extremely high salaries for chief executives. Tenures for college presidents have also shortened, with schools’ Boards of Trustees more willing to cut support for executives they feel are not living up to the responsibilities expected of them. Larger salaries demand more immediate results, and college presidents are increasingly being tasked to do more with less. Presidents need to consider whether they will maintain the support of school boards if a high salary does not quickly translate into robust financial results.
College presidents should also be concerned about losing the trust and stirring frustration among the student population, especially if they are faced with a decline in services. Students are more politically active than at any point in the last 50 years, according to recent surveys, and they may protest and speak out against administrators who maintain exorbitant salaries in the face of rising tuition rates and potential service cuts.