The Final Minority Report

Because Even Minorities Oppose Liberalism & Statism

Capping CEO Pay, Next Capping University Pay for Admin’s?

Correction on a previous post – I would support capping salaries for ANYONE who takes federal money, ranging from private businesses to university presidents. That certainly would create the proper incentive to get people out from sucking on the government’s tithe.

In the hubbub surrounding President Obama’s decision to cap salaries of commercial-bank CEOs at $500,000 (if they receive future federal funds), the salaries of college and university presidents have been flying under the radar. Some reconsideration is due, particularly because substantial taxpayer dollars go into their services, with more funds coming via the stimulus package. State and federal taxpayers subsidize public universities substantially, but even private schools benefit from things like tax-subsidized student loans and tax-funded faculty research.

If there is good reason to prevent tax dollars from finding their way into supposedly excessive bank CEO salaries, what about the salaries of their college and university counterparts? Not important, you say? Let’s look at some numbers.

Higher education’s bible—The Chronicle of Higher Education—publishes a survey of college and university presidents’ compensation packages each year. The most recent appeared November 21, 2008. Presidents were grouped by types of institution to promote comparability. For our purposes the most important distinction was between presidents at public research universities with at least 10,000 students (like Ohio State University) and presidents at private universities with very high research activity (like University of Chicago). In university lingo, “research” means lots of “government research grants.”

03/11/2009 Posted by | Capping Pay | | Leave a comment