Is It Worth It to Pay University Presidents Top Dollar?

Study looks to find a link between presidents’ salaries and the amount of funding the universities receive.

While it is difficult to calculate, a recent study conducted by The Review of Higher Education sought to discover a link between presidents’ salaries and the amount of funding the universities receive.  Because the amount of funding an institution can secure can take many forms, the study focused on two forms of funding: state appropriations and revenue from private fundraising.

The study focused specifically on four-year, public research institutions and looked at 119 universities over a seven-year period.  According to the study’s authors, there was no correlation between university presidents’ salaries and the state appropriations and private funding that an institution received.

It is important to keep in mind that the study was very limited in scope.  As previously mentioned, calculating a president’s ability to generate revenue is complicated for many reasons.  For instance, some presidents may be left to clean up a mess left by their predecessor, some may actually perform better than their predecessor but still underperform in general, and some may be more concerned with improving a university’s academic standing rather than fundraising.  Additionally, with all the possible forms that funding can take, it is difficult to accurately calculate the amount of money a university’s president brings in.

That being said, the study’s authors argue that their findings are relevant and that universities should reconsider the wisdom of paying presidents’ top dollar when there is no way to ensure that they will receive a worthwhile return on this investment.

This is what you need to know about the study that looked to find a link between presidents’ salaries and the amount of funding the universities receive.  Are you interested in more higher education news or looking for a consulting firm with experience with higher education institutions or medical centers?  Then don’t hesitate to contact the professionals at McKnight Associates, Inc.  We are ready to offer you hands-on human resources consulting for colleges, universities, medical centers, and organizations of all sizes.