There is a hostile climate regarding highly paid CEOs and executives making millions of dollars a year, while many companies cut back, freeze/lower salaries or lay off workers. Is it fair to show universities and school presidents in the same light?
Budgets for public universities have been in a steep decline for the last few years, all across the county. But, much like many of the CEOs of businesses that notoriously used public money to remain solvent, compensation for the top university administrator continues to climb even with shortfalls.
Strong leadership and wise decision making is valuable, but is it $1.9 million a year valuable, as it is for E. Gordon Gee of Ohio State University? Gee sports an annual compensation more than the next three Ohio public university presidents combined. Even the highest paid private college in the state, falls spectacularly short of that mark at $730,000.
Including travel costs, entertainment funding and housing, Gee has had a total compensation of over $16 million since starting in 2007. Gee has lead OSU with great decision making deals such as a huge leasing contract with CampusParc that will help fund multiple programs, the university busing system and increase investments. But, he was also at the helm during a huge scandal that lead to the resignation of Jim Tressel, cut popular programs with low profit margins and flagrantly using public money to live a lavish lifestyle.
Paying more doesn’t lead to better leadership and there is no better example than Mountain State University. Charles Polk, with his $1.8 million salary was credited as a huge part of MSU’s success. But, the top 10 highest paid president eventually lead the school to lose its accreditation and eventual take over by University of Charleston.
Here is a short list of highest president salaries for other top ranked public universities. The overall average salary for presidents of a public institution is $421,000 as of 2011.
Texas A&M System: $1.9 million
Pennsylvania State University System: $1 million
University of Michigan System: $845,000
University of Washington: $800,000
Texas Tech University System: $750,000
University of Texas System: $750,000
University of Minnesota: $740,000