Monday, November 15, 2010
In a Boston Globe article, based on a Chronicle of Higher Education review of 2008 Forms 990, more than one in five presidents at 448 colleges and universities received $600,000 in compensation, with thirty receiving more than $1 million in total compensation in 2008. Although a majority of the compensation packages were executed prior to the full effect of the economic downturn, academic executives' compensation is expected to rise in the coming years due to the supply and demand of top talent. Because of IRS changes to the Form 990 requiring compensation data to be reported on a calendar year rather than fiscal year basis, a true comparison to prior years is not achievable because of overlap in the reporting.
The results of the Chronicle's survey trigger differing opinions. On one hand, the president of the National Association of Independent Colleges and Universities argues that the compensation packages are warranted because of the increased demands placed on college presidents. On the other hand, the president of the National Center for Public Policy and Higher Education contends that increased chief executive compensation and tuition diminishes "public confidence in higher education."