Chart of the day

Posted: 7 April 2014 in Uncategorized
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According to the American Association of University Professors, in Losing Focus, its latest annual report on the economic status of the profession,

Figure 2 compares thirty-five years of data on administrative salaries from the CUPA-HR Administrators in Higher Education Salary Survey cited above with faculty salary data collected by the AAUP. It would have been preferable to disaggregate the analysis into more specific institutional categories, but that level of data on administrative salaries was not available. In the data from public institutions, the increases in median salary paid to four senior administrative positions were at least 39 percent after controlling for inflation, with the increase in presidential (“chief executive officer” in the parlance of the report) salary much greater at 75 percent. By contrast, and probably not surprising to regular readers of this report, the cumulative increases in mean salary for full-time faculty members were mostly less than half as great. The same pattern held in the private-independent sector, although the rates of increase for all positions there were larger. Median presidential salary jumped 171 percent above the rate of inflation, and the other three administrative salaries increased at least 97 percent, while the uptick in mean salaries for full-time faculty members reached only 50 percent or less. . .

As the longer-term analysis in figure 2 also shows, salaries for presidents in recent years have generally increased more rapidly than those of other administrators, reflecting greater concentration of authority in a single “CEO.”. . .But across all institutional categories, the average increases in administrative salaries are greater—in most cases, much greater—than those for full-time faculty members. The contrast is especially sharp at the private master’s degree universities, with senior administrators receiving double-digit increases while average faculty salaries stagnate or decline. . .

Some commentators have argued that the outsized and rapidly rising salaries paid to many presidents, especially, have only a trivial impact on institutional budgets that may amount to hundreds of millions (or even billions) of dollars annually. While that may be true from an accounting standpoint, the salaries paid to senior administrators are highly symbolic. As we have argued previously, they serve as a concrete indication of the priorities accorded to the various components of the institution by its governing board and campus leadership. Disproportionate salary increases at the top also reflect the abandonment of centuries-old models of shared campus governance, which have increasingly been replaced by more corporate managerial approaches that emphasize the “bottom line.”



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