Salaries For College Presidents Go Up

As a matter of tax fairness, I’ve used my position on the Senate’s tax policy committee to review how tax-exempt organizations fulfill their charitable mission in exchange for favorable tax status.  From the Nature Conservancy to the Smithsonian and tax-exempt organizations engaging in tax shelters, I’ve investigated to make sure they’re providing actual public benefits in exchange for their tax exempt status.

I’ve looked into colleges and universities that consistently raise tuition while their multi-billion dollar endowments grow tax-free and with tax-deductible contributions.  After I began asking questions a few years ago, several high profile academic leaders began to offer more generous tuition assistance to qualifying students.

I appreciated their response and steps taken to help make college more affordable in exchange for tax-exempt status.  A recent Chronicle of Higher Education survey shows that there’s a lot more to do, however.  The survey shows that presidents at private colleges and universities had their median pay increase by 6.5 percent, to $358,746 for 2007-2008.  Presidents at major private research universities had their median pay increase by 15.5 percent.  And, the survey showed that some universities pay former officers seven-figure compensation packages.

This all comes at a time when family budgets are being stretched thin by a downturn in the economy and rising unemployment. Families that had invested in college savings were hit hard last year due to the stock market falling, yet college tuition continues to rise dramatically.  The Chronicle of Higher Education also reported that 58 private colleges now charge more than $50,000 a year in tuition, room, board and fees, compared to only five schools costing that much last year.

Schools that give significant raises to presidents and executive officers appear out of touch with their students and families who are struggling to pay for rising tuition costs.  A college’s public mission as a tax-exempt entity is to educate students.  This should be the guiding principle for college and university board members when evaluating compensation for university presidents and former officers.