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College leaders beat pay freeze
A year before slump, compensation soared at private universities
Monday, November 02, 2009

The year before a souring economy caused endowments to fall, jobs to be cut and pay to be frozen, presidents of major private research universities across the country had an extraordinary year for pay increases.

Their median compensation -- salary plus benefits --grew by 15.5 percent in just one year at 97 nonprofit schools in 2007-08, according to a report being released today by The Chronicle of Higher Education.

The report is based on IRS filings. The Chronicle will release its report on public colleges and universities next year.

Among those receiving substantial raises was Jared Cohon, who has been president of Carnegie Mellon University since 1997.

His total compensation (counting pay and benefits) grew from $591,876 in 2006-07 to $733,220, an increase of $141,344 or 24 percent in one year. All but a few thousand dollars was in the pay category.

That put his pay above the median -- the point at which half make more and half make less -- of $627,750 for the major private research universities.

However, among all types of private colleges, it was not close to the 23 presidents who earned more than $1 million in 2007-08.

Asked about the raise, CMU spokesman Ken Walters said, "We don't comment on salaries."

Of executive pay raises overall, Paul Fain, senior reporter for The Chronicle, said, "I think the answer you'd get from the governing boards who set the salary levels is it is market. It is increasingly hard to find people who can do these jobs that are getting tougher all the time."

Since the recession, some college presidents have taken pay cuts, pay freezes or donated a portion of salary back to their schools, the Chronicle said. Those changes are not reflected in the numbers in the report.

CMU has a pay freeze this school year for employees, including Dr. Cohon.

Among the major private research institutions, the 15.5 percent increase in the median in 2007-08 is so large that -- adjusted for inflation -- it accounts for more than half of the increase in median compensation for presidents at those types of institutions over a five-year period.

The Chronicle calculated how much of the increase was above the level required to keep pace with inflation, concluding it amounted to 11.3 percent between 2006-07 and 2007-08 and 19.6 percent for a five-year period.

Pay isn't the only thing that has been going up.

The Chronicle noted that 58 private colleges now charge more than $50,000 a year in tuition, room, board and fees, compared to only five last year. Another 224 private colleges have passed the $40,000 mark, compared to just two in 2003-04.

In Pennsylvania, The Chronicle's list includes costs at Carnegie Mellon, $51,260; Franklin & Marshall, $50,410; Bucknell, $50,320; and Bryn Mawr, $50,034.

Many of the schools with high costs also have presidents among the highest paid, according to The Chronicle.

At CMU, Dr. Cohon's salary ranked 46th on a list of the 419 institutions surveyed.

Overall, the Chronicle examined the IRS filings of 419 nonprofit private colleges and universities granting bachelor's, master's and/or doctoral degrees and having expenditures above $50 million.

Among all of the institutions, the median compensation went up 6.5 percent to $358,746 in 2007-08, compared to the prior year.

Adjusted for inflation, the single-year increases in categories other than private research institutions were less dramatic.

Beyond what was required to keep pace with inflation, presidential pay at all private institutions surveyed went up 2.5 percent in one year and 14 percent over five years; private master's institutions up 2.9 percent in one year and 19.1 percent over five years; and private liberal arts colleges up 1.1 percent in one year and 11.4 percent over five years.

At the top of the pay list for private research universities as well as private colleges and universities overall is Shirley Ann Jackson, president of Rensselaer Polytechnic Institute since 1999. Her total compensation was nearly $1.6 million.

In Pennsylvania, the highest total compensation was $1.23 million for then-president of Cabrini College, Antoinette Iadarola. Her pay ranked 11th overall.

Dr. Iadarola, who served from 1992 until the end of June 2008, was paid $401,788 in salary and $830,127 in benefits.

Cabrini spokesman Dan DiPrinzio said her salary was in line with that of presidents of similar colleges and the additional compensation included deferred compensation accumulated over 16 years and salary for two sabbaticals that she did not take.

The second highest was University of Pennsylvania President Amy Gutmann, whose package totaled $1.22 million, including $825,000 in salary.

Education writer Eleanor Chute can be reached at echute@post-gazette.com or 412-263-1955.
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First published on November 2, 2009 at 12:00 am
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