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Salaries of public college chiefs rise, median tops $400,000

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Replies to: Salaries of public college chiefs rise, median tops $400,000

  • kmrcollegekmrcollege Posts: 5 College Search & Selection Champion
    edited May 2013
    @BCEagle91 - It is a problem. Why would the amount of money donated to the university be a primary metric with which to compensate the president? These are public universities of which the main revenue sources are state funding and tuition.
  • GMTplus7GMTplus7 Posts: 63
    edited May 2013
    @Pizza,

    Penn State's College of Medicine is in Hershey, PA, a 101 mile drive from the flagship campus' location at State College, PA.

    The College of Medicine is run by Harold L. Paz, M.D., Chief Executive Officer, Senior Vice President, and Dean:
    Harold L. Paz, M.D., M.S. - Penn State Hershey



    So I guess the answer to your question is, NO, Spanier does not manage the medical school/hospital.
  • JonLawJonLaw Posts: 4 College Search & Selection Champion
    edited May 2013
    "Are these college presidents also overseeing state flagship medical schools / centers and / or state flagship law schools? Because those are quite huge tasks and certainly pay well in the private sector."

    Oh, yes.

    Graham Spanier in particular has overseen the acquisition and subsequent fiasco of the failed partial absorption of Dickinson, now Penn State, law school.

    Because the first thing that you do is move the law school as far away from the state capitol as you can and alienate the old alumni as best you can.

    I also note that "overseeing" a law school is the closest thing to a sinecure as you can get in higher education these days.

    I can't bring myself to even pursue being a part-time law professor given the fact that it has evolved into a way to lard up young people with non-dischargable debt.

    At least the medical establishment is only about 50% sinecure, so I am in agreement with you, pizzagirl, that at least the medical school people *do* something that is net positive.
  • BCEagle91BCEagle91 Posts: 154
    edited May 2013
    > Why would the amount of money donated to
    > the university be a primary metric with which
    > to compensate the president? These are public
    > universities of which the main revenue sources
    > are state funding and tuition.

    If I could hire someone and pay them one one-hundredth of the income that they produce, I would do so in an instant and get as many of them as I could. It's free money to the institution.
  • JonLawJonLaw Posts: 4 College Search & Selection Champion
    edited May 2013
    I'm certain that Spanier wanted to box up and ship the medical school to State College.

    He was also instrumental in the Geisinger fiasco, which I was present to also witness.

    "A milestone in the history of Geisinger Health System includes a failed merger with Penn State/Hershey Medical Center from July 1997 to November 1999. The merger of the two large health care organizations and subsequent failure has provided a valuable reference for other systems with similar plans. The ultimate collapse of the merger has been attributed to the leadership's failure to recognize challenges of cultural differences between the institutions and community acceptance. e.g. Academic physicians at the Hershey Medical Center were resistant to the delegation of practice management to which the Geisinger physicians had become accustomed.[1]"

    Geisinger Health System - Wikipedia, the free encyclopedia
  • mommusicmommusic Posts: 13
    edited May 2013
    State funding is decreasing, tuition has reached an untenable height, and schools are turning to fund-raising campaigns. At least that is the trend I have been seeing.

    University of Cincinnati just raised a 1 BILLION dollar endowment fund. Pretty impressive. It shows strong community and alumni support, and provides income for years to come.
  • kmrcollegekmrcollege Posts: 5 College Search & Selection Champion
    edited May 2013
    @BCEagle91 - You are assuming that every dollar donated is attributable to only the president's tenure, which is false. Additionally, basing someone's compensation on an ill-defined revenue stream, of which the origination of is not the primary role of the position, is not in the best interests of the institution.
  • BCEagle91BCEagle91 Posts: 154
    edited May 2013
    > You are assuming that every dollar donated
    > is attributable to only the president's tenure,
    > which is false. Additionally, basing someone's
    > compensation on an ill-defined revenue stream,
    > of which the origination of is not the primary
    > role of the position, is not in the best interests
    > of the institution.

    Base it on the delta then.

    Who's to say that fundraising is not the primary goal of the University President?
  • VladenschlutteVladenschlutte Posts: 35
    edited May 2013
    I think that you'll find NH legislators to be a big bargain too. They get paid $100/year and free trips through the toll booths. The latter perk may be worth a lot more than the $100/year for some legislators.

    What kind of work commitment is a state legislature job? Is it something they they often do just part time and hold other jobs, or is it a full time job on it's own?

    Ultimately, there's very few college presidents in the country and the fact that they may be overpaid isn't a huge source of waste simply because of their small numbers. Maybe Michigan could reduce the salary of the college president by 500K for instance. If that was passed onto tuition savings it'd average about $12/year for each student. Not a big deal. The University wastes far more than that on all sorts of nonsense every year.
  • GMTplus7GMTplus7 Posts: 63
    edited May 2013
    I think it's a $100, not a $100k. I have shoes that cost more than a 100 bucks.
  • BCEagle91BCEagle91 Posts: 154
    edited May 2013
    > What kind of work commitment is a state
    > legislature job? Is it something they they
    > often do just part time and hold other jobs,
    > or is it a full time job on it's own?

    It's possible to do it part-time but you wouldn't be that effective in doing the job. There's a wide variation on how responsive legislators are to constituents.

    > I think it's a $100, not a $100k. I have shoes that cost more than a 100 bucks.

    Yes, it's $100, not $100K.
  • bclintonkbclintonk Posts: 48
    edited May 2013
    kmrcollege wrote:
    These are public universities of which the main revenue sources are state funding and tuition.

    It was that simple once upon a time, but that's now a badly outdated and oversimplified conception of how major public research universities work. The University of Michigan, for example, is an enterprise that spends about $5.5 billion a year, and raises revenue to match those expenditures. Toward that total, the state legislature appropriates less than $300 million annually, something on the order of 6% of the University's overall operating budget.

    And tuition produces only a small fraction of the rest. Of Michigan's 27,000 undergrads, about 2/3 are in-state and 1/3 are OOS. If they were all full-pays, tuition would produce about $600 million in revenue, but you need to discount that by the amount the university pays out in need-based and merit aid from institutional funds, about $180 million, bringing net undergraduate tuition to about $420 million. Adding in all the graduate and professional school tuition brings the total net tuition to somewhere around $850 million, but that still represents only 16% of the University's overall budget.

    Where does the rest come from? Well, about 44% of the University's overall budget is in its hospitals and health systems, a $2.4 billion annual enterprise that on both the expenditure and revenue side works like any other health care provider, but is necessary to allow the medical school to provide the research and medical training opportunities it provides. The health system has its own highly professional management team, but the President is the one ultimately responsible for ensuring that management team is in place and the books are balances on that huge enterprise. The University also brings in over $1 billion a year in research grants from outside sources, many of them federal but some corporate and some foundation-sponsored; but this isn't "easy money," these grants are highly competitive, and you need to actually do the work, which means you need to have the labs and the scientists and graduate research assistants, and in most cases you need to have all that already in place to be able to successfully compete for the grant. The University has an endowment of nearly $8 billion (7th largest for any college or university, public or private), which at a standard payout of 5% per year would produce just under $400 million in annual revenue; but that endowment needs to be carefully managed, and the President is the principal officer in charge of seeing that it continues to grow through sound management and by the addition of major gifts, which in turn don't just fall in your lap--they need to be carefully cultivated. The University holds hundreds of patents and other **** property rights that bring in something on the order of $100 million a year in royalties and licensing fees. Annual giving by alumni brings in more than $100 million per year. The Athletic Department is a self-sufficient unit within the University that brings in about $140 million a year in revenue from ticket sales, parking and concessions, conference payouts (from television revenues and football bowl game revenues, which are divided equally among Big Ten conference member schools), and licensing fees on Michigan-branded sports paraphernalia, among other revenue streams. And on and on.

    It's pretty clear, then, that a modern major research university is a huge and extremely complex enterprise, of which the President is the CEO, responsible for seeing that all the operating units are performing to expectations, that the budgets are balanced and that revenue from all these diverse revenue streams is coming in as expected. Oh, and that the University's 25,000 employees get their paychecks on time, and that appropriate compensation and benefits policies are in place to allow the University to attract and retain some of the most capable people in their respective fields, while still being fiscally prudent; and for seeing that the University's 584 major buildings and 31 million square feet of space are properly equipped and maintained and upgraded and replaced on a prudent and fiscally responsible schedule, and that major donors are found for major upgrades or additions to this capital stock. The President also needs to to be a skilled politician to keep the University's governing body, the Board of Regents, happy--along with a diverse array of often restive constituencies including state legislators, students, faculty, staff, alumni, major donors, the local community, and the state's citizens who elect both the Board of Regents and the legislature, among others. Fundraising is only part of the President's job, but it's a critical part; there's really no one else in the University who is going to close the deal on major gifts, whether it be in annual giving or gifts to endowment or gifts to fund major capital projects, without which the enterprise can't continue to move forward.

    From my vantage point, University of Michigan President Mary Sue Coleman earns every dime of her $918,783 compensation. In fact, she's been an incredible bargain, and I regret that she has elected to give up the reins. She'll be hard to replace. Not many people are cut out for a job this complex.
  • arco222arco222 Posts: 12 Harvard Champion
    edited May 2013
    Wow, the President of UM does all this all by himself. I'm surprised he gets any sleep.

    As for the law school scam, the "Deans" of these illustrious organizations have been fraudulently inducing law students to agree to three years of opportunity costs and hundreds of K worth of debt to attend their wonderful law schools when in fact, the employment statistics of their graduating lawyers were far worse than the students were led to believe. The roosters though are starting to come home to roost. Some Federal Judges are allowing lawsuits to proceed to jury trial against these Law Schools, and students are starting to vote with their feet, by refusing to attend Law School. Now the government needs to cut back on loans for law students, for profits, and the run of the mill University charging outrageous amounts of tuition for attendance. Then finally tuition might finally start coming down. But don't hold your breaths.
  • notrichenoughnotrichenough Posts: 39
    edited May 2013
    I agree and what do you think are the media salary of the football coaches at public universities?
    Interesting article on exactly what a top coach can be worth:
    You basically know Saban’s record on the field: 68-13 since arriving in Tuscaloosa in 2007, with three national titles. The athletic department money has followed suit: 2012 produced revenue of $124.5 million and profit of $19.4 million, according to data from USA Today, up from $67.7 million in revenue and $7.1 million in profit in 2007. Football accounts for about two-thirds of all revenue and $45 million in profit, while the school’s other sports teams collectively lose money.
    ...
    Add it all up – more students from outside Alabama paying ever-increasing premium tuition bills – and the school realized $50 million more in out-of-state tuition revenue for last fall’s incoming class than it did for the same class in 2007 ($76 million vs. $26 million).
    The Magic Of Nick Saban: Everyone Wants To Go To Alabama
  • marshallmeyer12marshallmeyer12 Posts: 7 College Search & Selection Champion
    edited May 2013
    They deserve every last penny.
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