A Wall Street Journal report presents facts about college presidential pay that, in light of other facts, raises several questions.
College Presidential Pay Creates Issues
The report lists examples of annual salaries and perks, provided to presidents at private and public universities. Among these perks are:
- Six-figure annual retirement fund contributions
- Chauffeur and car
- Paid sabbaticals
- Six-figure annual retention bonuses
- Guaranteed faculty positions after presidential tenure
- Six-figure spousal salaries
- Four-figure monthly consultant contracts upon retirement
It’s hard to argue that college presidents have an easy job. They are ultimately accountable to the regents for any and every thing that happens on campus. They are expected to provide a good return on the investment made in them, determined most frequently by success in fundraising.
The high-dollar perks are a worthwhile investment if the president is able to raise millions of dollars. Failure to produce those results can often lead to severance.
An inconvenient truth
Six-figure salaries and bonuses for college presidents become an issue when considered in light of the lives of where the money comes from.
Revenue from television, licensing and other sources continue to rise for schools with robust athletic programs. A large portion of that success is due to the work of the athletes. The football program at the University of Florida was estimated to bring in over $68 million last year, with a profit of $44 million.
There is great value to the scholarships that many of these athletes receive. Athletes also receive many other perks that other students do not. Believing that these athletes receive nothing in exchange for their efforts is erroneous.
The question is whether that return is on par with their investment, however.
The gap between scholarship value (traditionally covering tuition, books, fees, room and board) and the actual cost of attendance is significant. Continuing our example, the University of Florida projects the actual cost of attendance for an in-state, incoming freshman living on campus will be $21,260 this fall.
A traditional full athletic scholarship would leave said freshman about $4,000 short on that amount. Not all of Florida’s athletes are recipients of a scholarship at any level, much less a full ride.
Math is hard
Simple math can give further context to the perks that some presidents receive. The allowable number of scholarships for NCAA football teams is 85. Using the financial details already stated, providing for the actual cost of attendance for those 85 athletes would cost Florida an additional $340,000 per year.
That’s just $30,000 more than what Florida president Kent Fuchs gets every year in deferred compensation ($160,000) and retirement fund contribution ($150,000). Those payments are in addition to his annual base salary of $860,000.
That $4,000 difference for the athletes isn’t a matter of retirement funds, however. It’s about the ability to pay a cell phone bill, get a burger with friends, buy a shirt, etc.
University presidents have heavy responsibilities and intense demands placed upon them. Given the millions of dollars in revenue that many of these universities bring in, it’s difficult to argue that these presidents don’t deserve a good cut of that.
Athletes at these universities have similar intense demands upon them. They are partially responsible for bringing in much of that revenue. The question is, should universities provide chauffeurs for presidents when athletes can’t afford a cab?
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