McRobbie’s $500K salary in bottom half of conference

A weak economy and major university budget cuts have clamped the compensations of almost all employees at public universities, including their top executives, according to a Chronicle of Higher Education survey.

The survey found that more than one-third of the included 185 public university presidents’ base salaries remained stagnant throughout last year, and some even experienced a decline in total compensation.

IU President Michael McRobbie earned $541,125 in the 2008-09 fiscal year, the highest among CEOs of public universities in Indiana, and 52nd in the country. The compensation total, as reported in the study, includes salary, deferred compensation, retirement pay and housing funds.

But compared to other Big Ten presidents, McRobbie’s total compensation is relatively low.

The IU board of trustees determines the president’s salary. In deciding McRobbie’s pay, the members take many factors into consideration.

Patrick Shoulders, one of the nine members on the board, said they have tried to set presidential salary no lower than the middle third in the Big Ten conference.

“Our peers are the large, public state universities in the Big Ten,” Shoulders said. “While we cannot reasonably afford to be ranked number one in presidential compensation packages, we cannot expect to attract dynamic, visionary leadership if we sit at the bottom.”

One Big Ten school paying its president more than IU pays McRobbie is Ohio State University. The school paid its president, E. Gordon Gee, the most out of all the surveyed public universities. Gee received more than $1.5 million in total compensation in the fiscal year ending June 30, 2009. His compensation included a base salary of $1.3 million and other benefits provided by OSU, including use of car and house, deferred compensation and retirement pay. Gee was the only chief executive on the survey to receive compensation more than $1 million.

Shelly Hoffman, assistant vice president of OSU, said as a successful head manager of one of the largest and most complex universities in the nation, Gee deserved what he was compensated.

“He is one of the most experienced and senior university presidents in the nation,” said Hoffman about Gee.

Hoffman said Gee’s compensation is determined by the Board of Trustees at OSU.
In talking about his responsibilities as the highest-paid public university CEO, Gee said things never come easy.

“Leading this great land-grant institution is a calling,” he said. “Each day, I feel an unparalleled sense of urgency to fulfill the public trust. I am fully determined to make good on the university’s great promise, assuring educational access and opportunity and addressing the very real and tangible challenges of the day.”

Norman G. Arkans, associate vice president of University of Washington, which ranked second on the survey in terms of president’s compensation, said the amount of compensation their president, Mark A. Emmert, received last year was decided and reviewed by the university’s board of regents.

Arkans said the budget cuts in the state of Washington have definitely affected their employment decisions. UW has eliminated more than 1,000 jobs on staff, and the instructional resources have also been affected by state funding cut.

According to the Chronicle survey, Emmert received a total of $905,00 in the last fiscal year.

“All employees of us have experienced salary freeze since last year, including our president,” Arkans said.