Thursday, January 26, 2012

Statement on CSU Presidential Pay

The CSU has released a statement which clarifies their new policy on presidential compensation.

Here is the complete text of that message:

New Policy Set Forth for Presidential Compensation

The California State University Board of Trustees this week adopted a new policy that caps compensation for newly-hired presidents to no more than 10 percent above the outgoing president’s base pay.

The new policy was recommended by the board's Special Committee on Presidential Selection and Compensation that has been reviewing the system's selection process and executive compensation structure since last summer.

The new policy also includes a list of five tiers of institutions that compare with CSU campuses on location, enrollment, budget, six-year graduation rates and research funding. The comparison list will be used as a reference for presidential compensation along with an individual candidates' reputation for national policy leadership, length and depth of executive experience, and consistent with other uses of resources within the annual budget.

In the past, presidential compensation was determined with reference to the compensation of presidents at 20 institutions throughout the country identified by the California Postsecondary Education Commission (CPEC) as appropriate comparators. The CPEC comparator list included public and private institutions such as USC, Tufts and Rutgers and presidents with salaries as high as $2 million which created a salary market "gap" of more than 40 percent for the CSU’s presidents. That gap has been reduced with the new comparators.

The new policy language states "...when a presidential vacancy occurs, the initial base salary, paid with public funds to the successor president, shall not exceed 10 percent of the previous incumbent's pay."

"The new compensation limits, and the more relevant tiered list of comparator institutions, will give stakeholders a good benchmark of where presidential compensation will be set as we move forward," said CSU Board Chair Herbert Carter. "Our continued goal is to recruit and compete for the best leadership possible, but also within articulated budget guidelines."

The CSU is in the process of presidential searches at Northridge, San Bernardino, San Francisco and the Maritime Academy. The adopted compensation policy will be implemented as the board makes presidential selections and determines the salary levels of newly hired presidents.

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