Study: Salaries of university presidents not up to par

Jennifer Knight

Wednesday, July 30, 2003 | 11:31 a.m.

A study ordered by a UCCSN Board of Regents committee found that the salaries of university presidents in Nevada are lower than those of their peers in other states while Nevada's community college presidents are paid better than their equals.

The University and Community College System of Nevada study examined the pay of leaders of 26 universities throughout the West and found that Nevada pays its university presidents an average of $30,000 less per year than their contemporaries.

But each of Nevada's community college presidents and the state college president is paid at least $10,000 more than the presidents of comparable institutions.

The study is expected to become part of the debate between members of the Nevada system's executive compensation committee on Friday when it meets in Las Vegas.

The key decision will be whether university and college presidents in Nevada should be allowed to accept salary supplements from private foundations.

"Whether it is a $3,000 gap or $100,000, we are studying whether it is appropriate for a foundation to provide a subsidy," said Regent Steve Sisolak, who chairs the compensation committee. "It's not the amount of the gap. The state has extremely limited sources and the question is whether we should turn to outside sources to supplement that."

The concern is that if regents decide to supplement a president's state-funded salary with private dollars, institutional heads could be influence by donors. On the other hand, many believe that if Nevada doesn't do something now to bring salaries up to the rest of the nation, the state will lose its ability to effectively recruit or retain quality leaders.

"You're talking about a highly competitive national market right now," said Jan Greenwood, vice president of education practice at the Virginia-based executive search firm AT Kearney. "You have to ask yourself for comparison sake how much your president can make somewhere else."

As an example, Greenwood said, if University of Nevada, Las Vegas President Carol Harter were to be hired away by the University of Tennessee or the University of Florida, she would earn between $800,000 and $900,000 a year.

As it stands, Harter earns $209,038 a year, while John Lilley, president of the University of Nevada, Reno, earns $206,960 annually. Both make an additional $31,000 a year for extras such as housing, car and expenses.

Comparatively, the average pay for presidents at doctoral research universities, according to the University and Community College System of Nevada study is $234,684 a year, with a maximum amount of $353,600.

Harter declined to comment on the salary discussion, deferring to the committee on the decision.

The study looked at schools with similar budgets and enrollments in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington and Wyoming.

But Greenwood said the study doesn't necessarily reflect market demand because many salaries are buttressed by private dollars.

University presidents are being offered packages that include deferred annuities (money that is often paid out at the end of a contract), golf club memberships, cars, houses that are paid for and a host of other perks, Greenwood said.

"That is boilerplate pretty much around the country," Greenwood said. "(Private donations) have been used around higher education institutions for 50 years. This is not new news."

While Nevada is behind the trend in pay for its university presidents, it stands up well in other areas, such as its pay for community college presidents and the new president of the Nevada State College at Henderson.

The $166,400 annual salary of Community College of Southern Nevada President Ron Remington was more than the $155,450 average salary of presidents at eight other similar institutions, according to the study.

Of the 17 educational master's granting institutions in the Western United States that compare with state college, the average pay of a president was $179,035 a year. Kerry Romesburg, the state college president, makes $195,000 a year at an institution that does not yet grant master's degrees.

"To be really honest, I wouldn't have come for less," Romesburg said. "I certainly have no apologies for my salary. It's certainly in line with most of the other institutions."

Romesburg pointed out that the market is ripe for presidents to move and because of that the discussion about the pay of Nevada's university presidents is a timely one.

"Am I being talked to right now?" Romesburg said. "Yes. Will I go? No. We get recruited all of the time. That's why it's important that (Nevada) bring university pay up. If Carol (Harter) were to leave, you wouldn't find somebody to replace her for the kind of money they pay her."

With limited state funding to bring salaries neck-and-neck with other research institutions, the remaining source of money to make up the difference would likely have to come from university foundations -- an idea that has gotten mixed reviews in this state.

"I'm still not convinced that foundation dollars should be used to enhance a president's salary," said Keith Lee, chairman of the University of Nevada, Reno Foundation. "At the end of the day, while the salary ensures that we are competitive out there, it is up to the negotiation between the individual and the university."

Members of the UNLV Foundation board could not be reached for comment.

While the idea of increasing a president's salary with foundation money at universities has become more common, doing so at community colleges is just catching on, said Narcisa Polonio, a director of board services at the Association of Community College Trustees, which recruits community college presidents.

"I see that as something that is going to happen more in the future," Polonio said. "(Compensation) packages are becoming more complex. There's a lot of customization to meet the needs of the candidates."