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College President Salaries on the Rise Again

by Associated Press , November 13, 2007

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College presidents are getting healthy raises, and a dozen at private universities earn $1 million or more including benefits, according to a new survey published Monday.

Salaries at public universities remain a tier lower but also are on the rise, with eight presidents earning $700,000 or more last year, six more than the year before, according to the annual survey by the Chronicle of Higher Education.

In Montana, the presidents of the two major universities are paid a little under $200,000 a year. That's 65 percent of the average for institutions that confer doctorates, according to the Montana university system.

Presidential salaries are facing closer scrutiny at a time when college prices continue to rise well above the rate of inflation.

The survey published Monday reports salaries from private colleges for 2005-2006, the latest year for which they are available. Figures for public colleges are for 2006-2007.

Of the 12 presidents earning $1 million or more, only three continue to lead their institutions.

Richard Freeland, who stepped down in August 2006 at Northeastern University, was identified as the highest-paid president, with $2,887,775 in total compensation, including $2,373,285 in benefits. James P. Gallagher, who stepped down at Philadelphia University, had $2,557,219 in total compensation.

Freeland's compensation included the present value of a long-term annuity for retirement, and Gallagher's included deferred compensation that accrued over five years.

Presidents who left their jobs during the recorded year were ranked separately. That list included Benjamin Ladner, who received $4.3 million in pay and benefits in fiscal 2006 from American University. Ladner stepped down following revelations of excessive personal spending of university money, and most of his compensation came from severance and deferred payouts.

The highest-paid, still-sitting president was William Brody at Johns Hopkins University, who received $1,938,024 in total compensation. Just under $1.5 million came in the form of salary from the university, including about $920,000 in deferred compensation.

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