The new robber barons
Study shows university presidents are getting rich quickly
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With college tuition prices rising at a much faster rate than that of inflation for decades, it stands to reason that somebody is getting rich. A report last week in the Chronicle of Higher Education indicates that university presidents are among the first in line at the gravy train.
The annual survey found that presidents of 12 private universities made more than $1 million for the 2005-06 academic year (the latest year for available data on private schools). Eighty-one private university presidents raked in more than $500,000, compared to 70 presidents who did so the previous year and three presidents 10 years earlier. The median compensation for private university presidents was about $528,000.
Presidents at public universities weren't far behind. The Chronicle found that eight received $700,000 or more during the 2006-07 year, up from two the year before. The median pay for public presidents was about $400,000.
The top higher education dog was Richard M. Freeland of Northeastern University in Boston. Freeland reportedly received a $2.3 million bonus as he left the post in 2006, on top of his salary of about $514,000 and expenses of about $107,000. David P. Roselle of the University of Delaware took in $875,000 to become the highest paid public university president.
Like the original robber barons, today's university presidents make their living by charging exorbitant fees to those who pass through their domains. Fueled by government subsidies for students, tuition prices at public universities have more than tripled after inflation over the past three decades and have not fallen during a single year at least since 1980 (see "No way down," Aug. 27, 2005).
It's a record of price increases that would make oil executives blush but one that the captains of higher education get away with because the public mind has not associated their occupation with greed. Perception, however, may be catching up with reality.
"If your aspiration is to be a college president, that is a way to become a millionaire," Patrick M. Callan, president of the National Center for Public Policy and Higher Education, told The New York Times. "That was inconceivable 20 years ago."
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