CSU Presidents’ Compensation: Comparisons With Other Institutions

Compensation Paid to CSU Campus Presidents: Remaining Competitive 2007 Mercer Study

In order to recruit and retain top-quality California State University (CSU) campus presidents, it is critical that their salaries and benefits be competitive with other higher education institutions. In October 2005, the CSU Board of Trustees embarked on a five-year plan to make compensation for all employees, including campus presidents, more competitive. This plan seeks to reduce or eliminate the gap between CSU salaries and the average compensation paid by the 20 institutions historically used for comparison purposes by the California Postsecondary Education Commission (CPEC).

In July 2007, Mercer Human Resources – a global human resources consultancy – presented findings from its twelfth annual analysis of how presidential salaries and benefits compare to CPEC’s 20 comparison institutions. Mercer’s most recent study reveals that the average salary for CSU presidents continues to lag significantly behind the average salary paid by these comparison institutions.

Mercer’s analysis includes the following key findings:  The average CSU president’s salary currently lags the average paid by comparison institutions by 46%; salary lags for individual CSU presidents range from 27% to 66% behind the comparison average.  Despite a 4% average salary increase for 2006, the lag has increased during the past year due to an average 8% salary increase provided at comparison institutions.  Certain perquisites not provided to CSU presidents, such as employment contracts and supplemental life insurance, are provided by the majority of comparison institutions. Sabbaticals and supplemental retirement benefits not available to CSU presidents are provided by half of the comparison institutions.  Perquisites for which CSU presidents are eligible, such as automobile and housing allowances, are provided by nearly all of the comparison institutions.

Moreover, Mercer’s analysis published last year included the following key findings:  While other benefits made CSU more competitive, total compensation for CSU presidents lagged the market by 11%.  Medical benefits and paid time off provided to presidents are also substantially below market  Retirement contributions for presidents to CalPERS is capped by federal tax law and regulations. The IRS cap for 2007 is $225,000. The cap was $150,000 in 1996 when first implemented. Presidents who have been hired since 1996 do not get their full CalPERS retirement benefit.

For more information, go to: http://www.calstate.edu/exec_comp/