How to Tell if College Presidents Are Overpaid

Richard Vedder:

The Chronicle of Higher Education tells us the median salary of public university presidents rose 4.7 percent in 2011-12 to more than $440,000 a year. This increase vastly outpaced the rate of inflation, as well as the earnings of the typical worker in the U.S. economy. Perhaps, most relevant for this community, it also surpassed the compensation growth for university professors.

Moreover, the median statistic masks that several presidents earned more than double that amount. Pennsylvania State University's Graham Spanier, best known for presiding over the worst athletic scandal in collegiate history, topped the list, earning $2,906,721 in total compensation. (He was forced to resign in November 2011 and was indicted in November 2012 on charges related to the Jerry Sandusky sex-abuse scandal.)

Spanier's package will get the attention. But the outrage should be spread around. University presidents are becoming ever more plutocratic even as the students find it harder and harder to pay for their studies. University leaders claim institutional poverty as they enrich themselves. A perennial leader of the highest-paid list, Gordon Gee of Ohio State University (more than $1.8 million last year), paid $532 for a shower curtain for the presidential mansion.

Posted by Jim Zellmer at May 22, 2013 2:37 AM
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