Washington — U.S. Sen. Charles E. Grassley voiced dismay today over the findings of a report by The Chronicle about compensation for private-college employees other than presidents. The Iowa Republican has been urging private colleges, as nonprofit entities, to rein in pay for their top executives, and he cited the report’s findings that the highest-compensated employees in academe made more than $4-million in 2006-7.
“There’s more money at some colleges than people might think,” Senator Grassley said in a written statement. “Colleges get big tax breaks to help them achieve their missions. The trustees need to make sure assets are used in the best possible way to fulfill the charitable mission of educating students. Is $4-million for a single professor or football coach the best use of resources? Students and families struggling to pay for college would probably say no.”
But the National Association of Independent Colleges and Universities, whose membership includes nearly 1,000 private colleges, countered that The Chronicle’s list included “highly sought-after professionals in their respective fields.”
“The median salary of The Chronicle’s list of top-compensated private-college and -university employees is $160,493,” the association said in a written statement. “In other words, on average, a private college or university pays its top five to 10 employees a median income that’s significantly lower than what comparatively skilled and experienced individuals would earn in the for-profit sector.”
The association’s statement adds: “Leaders of nonprofit organizations — and their boards of directors — are very aware of the concerns regarding executive compensation. They take seriously their responsibility to make a good-faith effort to avoid excessive salary and benefits packages. In the midst of the nation’s economic crisis, a growing number of private colleges and universities have announced salary freezes, and in some cases salary cuts, for their leadership teams. These savings are being transferred to other budget areas to increase student aid and keep student out-of-pocket costs as low as possible, and to safeguard academic quality and faculty jobs.” —Jeffrey Brainard
