The Chronicle examined the federal tax returns of 595 private colleges and universities. The results showed that inflation-adjusted presidential salaries at doctoral universities rose 18 percent from the 1997 fiscal year to 2001, 8.3 percent at master's universities and 3.7 percent at liberal arts colleges.
The average salary of a president at a private doctoral university was $356,092. At private institutions awarding masters degrees, the average presidential salary was $173,547, while at liberal arts schools it was $205,323.
The highest paid president of the 2001 fiscal year was Claire L. Gaudiani of Connecticut College. She received a $500,000 severance package upon resigning in addition to her annual salary, resulting in a total compensation of $898,410.
Judith Rodin of the University of Pennsylvania received $808,021, the highest salary of any president still in office.
People in the education establishment defended the rise in salaries, according to The Chronicle, saying they are necessary in the competition for top executives. "The list of people with really solid academic credentials to go with solid records of achievement in terms of managing and governing those kinds of operations is not very long," said Thomas C. Longan, vice president for programs and research at the Association of Governing Boards of Universities and Colleges, to The Chronicle.
"When you do the math, would you pay somebody $500,000 who could help you raise a billion?" said Shelly Weiss Storbeck, managing director of the Higher Education Division at A.T. Kearney Executive Search, according to The Chronicle.
Derek Bok, president emeritus of Harvard University, had a different opinion of salary inflation. "A huge presidential salary tends to exacerbate tensions that too often exist between faculty and administration. When hard times come and faculties are asked to assist in making cutbacks, presidents with huge salaries are not likely to inspire much sympathy or cooperation," he said to The Chronicle.
Gaudiani's salary at Connecticut caused concern among the college's faculty. While Duncan Dayton, the chairman of Connecticut's Board of Trustees, told The Chronicle that the package was "performance compensation," many professors there said they believe it was a payout to force her to resign. Connecticut has been running budget deficits over the last few years that many attribute to some of Gaudiani's initiatives.
President Tom Gerety came in 10th on the list of the highest paid private liberal arts college presidents, earning $340,650. He was second in the five-college consortium behind Ruth Simmons, who earned $365,157 in her final year at Smith College. Williams College president Morton Schapiro earned $354,891 and ranked seventh on the list.
Most students underestimated Gerety's salary. "$160,000?" said Nandana Thomas '06. One sophomore, who preferred to remain anonymous, guessed $200,000. He was shocked by the real number. "Gerety doesn't need that much money-that's enough for four people!" he said.
However, university and college presidents are not the highest paid academics. William T. Spitz, the vice chancellor for investments at Vanderbilt University, came in first, earning $3,217,311 in 2001. Almost all of the other 23 people earning over one million dollars at colleges and universities worked in medical schools as professors, surgeons, or hospital directors.