Thursday, May 21, 2015

The Financial Perks and Salaries of Some University Administrators

We learn that when Yale President Richard Levin left office, he received a lump sum pament of $8.5 million. According to IRS Form 990, he earned $1.15 million in 2013 and $1.38 million in 2012. According to the Yale Daily News: 

The “additional retirement benefit” was disclosed in the University’s latest federal tax return, filed Friday, and came to $4.4 million after taxes. According to the filing, it was calculated by multiplying 75 percent of Levin’s final presidential salary by the 20 years he served, and then subtracting the annuity value of other Yale retirement benefits.

It was structured to provide targeted income replacement in retirement, University Spokesman Tom Conroy said. The benefit reflects the “careful deliberation and judgment” of the Yale Corporation over time, he added. The body began discussing the payout in 2002, with the assistance of outside consultants.

The rationale is often used in the corporate world: “He did such a great job that we wanted to encourage him not to take other offers and to stay; so we offered him more money.” (my words). Thus the corporate mentality invades academe.

 Most professors that I know become academics because they saw value in teaching and in advancing the frontiers of knowledge and understanding. We made a willing financial sacrifice. For myself, I haven’t had a salary increase in years, and stipends for research and travel have disappeared. University executives live in a different world.

If you would like to learn who are the highest paid employees in private nonprofits (including colleges and universities, as well as the AALS), go to Guidestar (here) and fiddle around until you find the 990s. There is no charge.

As for the Yale pay out, you can read more here and here.


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