Tuesday, September 18, 2007

Lt. Governor: Executive pay hike is "unnecessary" and "extremely offensive"

CFA hosted a teleconference with Lieutenant Governor John Garamendi today about the CSU plan to raise executive pay. For the next day or two, you can listen to a replay at (800) 475-6701 or (320) 365-3844, using passcode 887951.

During the teleconference, Lieutenant Governor Garamendi stated that he is "strongly opposed" to the executive pay raises and student fee increases. He described the planned pay raise as "unnecessary," "uncalled-for," and "extremely offensive." He called CSU's claims of an executive pay lag an "excuse" and pointed out that when all the perks are included, such as $60,000 or a free house for presidents, current executive pay is already competitive. "The total compensation package is not out of line with other institutions, including private institutions." "There's no indication over the last several years that any executive is leaving for lack of pay," or that there's any difficulty recruiting high-quality executives.

Garamendi pointed out that the CSU budget for the 2007-2008 fiscal year was approved by the Board of Trustees without any discussion of this pay increase, and that budget was the one accepted by the governor and legislature. "Therefore this money is coming out of some program; the question is which."

Asked what level of pay increase he would support for executives, Garamendi answered "None."

Garamendi joins CFA in urging halt to CSU exec pay (CSUEU)
Lieutenant Governor Garamendi Opposes CSU Exec Raises

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