HALLS OF IVY ARE HUNG WITH GREEN INDEED [College pay scales]

Gannett via Bloomberg, no url | 11/27/02

[NativeNewYorker]

  George W. Bush, the president of the United States, is paid

$400,000 per year (with a palace and a 747 on the side) to preside

over the federal government, which spends trillions annually. Claire

L. Gaudiani, former president of Connecticut College, was paid

$898,410 in regular salary and deferred compensation in 2001 to stop

presiding over a small school in New London, Conn., with about 1,800

students and a view of the sea. She was one of 27 college presidents

earning more than half a million that year. 

   Executive pay is a hot topic these days, with big corporate chiefs

pocketing pay packages in the multimillions. But academics jumping

aboard the gravy train? Who knew? 

   This revelation of wretched excess was spun up by a little

eyebrow-raiser of a news story recently that noted that Kurt Landgraf,

late of the DuPont Co., had been paid $800,000 for his first 10 months

of work for the Educational Testing Service, of SAT fame. He also paid

six-figure bonuses to 15 ETS officers. This, the story implied, was

rather shocking because nonprofit education services tend to pay more

like colleges and universities. 

   Actually, ETS is paying like its academic customers. The latest

issue of the Chronicle of Higher Education reports that The

Half-Million Club of college prexies has doubled in the past few years

with no end in sight short of a national economic meltdown. Judith

Rodin of University of Pennsylvania makes $808,000, William R. Brody

of Johns Hopkins makes $677,000. Constantine N. Papadakis of

Philadelphia's Drexel University makes $637,839. Steven B. Sample of

the University of California makes $605,000. And Ruth J. Simmons made

$539,000 in her last year at Smith College and hasn't taken a pay cut

to move to Brown University. 

   Perhaps there is some justice in fat paychecks for academics in an

era when pop stars and athletes are paid millions. But they are

getting a cut of the gate and the question is whether nonprofits, who

pay no taxes, should be allowed to be this generous. (They are even

more generous to physicians at medical schools, some of whom make well

over $1 million per year, and to football and basketball coaches). 

   The boards of trustees that authorize pay and benefits packages

(almost all college presidents also get free houses) say salaries are

market driven. College presidents have to raise millions of dollars to

keep their institutions afloat, so why not give them a cut? 

   The IRS, in its wisdom, thought things were getting a little out of

line in the halls of ivy and declared last January that it is going to

start enforcing a 1996 law that penalizes top officials at nonprofits

who receive undue compensation. Salaries must compare favorably with

''peer institutions in similar geographic markets.'' The unintended

consequence may be a salary race upward at colleges everywhere. 

   Left in the dust are ordinary professors. While some are well paid

(over $100,000 at big colleges), their annual increases have stayed in

the 4.5 percent range compared to their presidents' high double-digit

increases. They are grumbling. 

   Technically, nonprofits are supposed to plow their excess revenues

back into their missions, which in private colleges should be the

student learning environment. Arguing that good presidents are an

integral part of that easily skirts that one. 

   But the warning shots have been fired. College board members are on

notice, like their corporate peers, that they may be seen as too

willing to loot the treasury on behalf of favored executives. 

   Meantime, expect more college tuition increases. And stop that

sniffling.

[American Soldier]

This revelation of wretched excess was spun up by a little eyebrow-raiser of a news story recently that noted that Kurt Landgraf, late of the DuPont Co., had been paid $800,000 for his first 10 months of work for the Educational Testing Service, of SAT fame. He also paid six-figure bonuses to 15 ETS officers. This, the story implied, was rather shocking because nonprofit education services tend to pay more like colleges and universities.

This is disgusting. All the costs of ETS's services accrue to students during high school, when there's no financial aid to pay for it. Excessive pay levels at ETS will end up being a burden to working class families that have to pay the fees to take the SAT. This is stupid. Running ETS is not like running a real company. They should hire some schmuck who just got his MPA from an unheard of school in the Midwest. He would just as easily be able to run the company, which has guaranteed customer base every year.

OTOH, what people fail to realize is that most of the college presidents you see making Wall Street level incomes have Wall Street level fundraising experience. They effectively cost the schools nothing, as they will bring in more money from alumni/industry/govt research grants than they get paid every year. That is really the only reason you would need someone with much talent to perform what would otherwise by a mostly symbolic job.

[Billy_bob_bob]

Here's a fun exercise. Take the actual cost of earning a degree, including deferred income, housing expenses, food, books etc. in addition to the cost of enrolling in the university of your choice. Now compare that expense to the anticipated increase in income you will realize from having your degree. Be sure to take into account your reduced earning ability early in your career because of "lack of experience", and reduced earnings later in your career due to H1-B competition and age discrimination.

After you've run the numbers then you can decide what trade school you plan to enroll in.

[banjo joe]

dog-gone right. At age 47 (and with a B.S. earned 26 years ago) I'm looking at trade school!

[taxcontrol]

After you've run the numbers then you can decide what trade school you plan to enroll in.

True - so true.

I took the trade school route - or for the technology sector - it's equivilent by going to vendor training classes. So I do not have a degree - not even an associates. I'm one of the top people in my field - but no degree.

But here is the real laugh. I could not afford the pay cut to teach at a major college. I guess that's ok, cause most colleges and universities do not think I'm qualified to teach 'cause I dont have a degree.

I recall a time when I went a local university to see what it would cost to return to college and get my degree. The rules required that I sit down with a counseler and discuss my education. The person I was suposed to meet with was sick so the assistand dept head did my "interview"

He went through my history and anounced that in 2 to 3 years I could expect to be making almost has much as he was but that I couldn't expect to be making the "good money" until I had several years of experience.

You should have see the look of shock when I told him that I would have to work 2.5 jobs at the pay level he was recommending in order to break even.

Until I can get someone (employer tuition maybe) to pay for my college, it just does not make sence. Too much cost, too little return.

[TSgt]

This is sick. These are the same kooks that while raising my tuition every year, rape the minds of young people with their anti-American, communist bull.

My only saving grace was joining the military. The Ohio Air National Guard is paying 100% tuition. My wife is in school so that's another story. Loans, loans and more loans.

And the books! We spend hundreds of dollars a quarter on books, some of which we never use in class!

I'll be so glad when I can just work my 40 hours and not have to leave work only to go to class for another 3 hours...

[American Soldier]

Well I can see your point, but for example, the "public" school where I enrolled for my graduate studies actually gets no funding from the state to reduce student tuition -- meaning that the only thing controlling what students pay is donations from alumni and corporate contributors. If not for the fundraising skills of the administrators, I wouldn't have been able to afford the school, even with loans.

[patton]

Um, Mike, a 40-hour week is not in the cards...I am averaging 60+...

[Jesse]

The problem with a lot of these institutions is that the salaries are hidden behind the not for profit status, which is a scam. Many so called not for profits are more greedy than any for profit institution you could name.
Solution is to eliminate the not for profit status. There is no such thing anymore.