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NU chiefs' raises were below U.S. average

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BY MELISSA LEE / Lincoln Journal Star

Tuesday, Nov 18, 2008 - 01:30:34 pm CST

University of Nebraska President J.B. Milliken and University of Nebraska-Lincoln Chancellor Harvey Perlman each received healthy pay raises last year, pulling in a combined $30,000 more in salary and benefits in 2007-2008 than in 2006-2007.

But neither man’s pay raise came close to the average raise of a U.S. public university president, a new survey shows.

In its annual salary survey released Monday, The Chronicle of Higher Education found public university presidents’ salaries climbed 7.6 percent last year, with the median compensation package hitting $427,400.

Story Photo
NU President J.B. Milliken

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Database: University heads' salaries

NU’s figures weren’t quite so high.

Milliken’s compensation package rose from $363,181 to $378,558, a 4.2 percent increase, according to The Chronicle.

His package included a $307,227 base salary, a privately funded car allowance, a $24,000 privately funded housing allowance and more than $47,000 in deferred compensation and other benefits.

Perlman’s compensation package rose from $308,909 to $323,701, a 4.8 percent increase. He received a $266,136 base salary, plus privately funded housing and car allowances and nearly $37,000 in deferred compensation and other benefits.

The nation’s highest-paid public university president — Gordon Gee of Ohio State University — earned a compensation package worth more than $1.3 million.

Fifteen presidents earned at least $700,000, and nearly one-third of public university presidents make more than $500,000, The Chronicle found.

Those figures should be troubling to families struggling in a sour economy, NU Board of Regents Chairman Chuck Hassebrook of Lyons said.

“The increases nationally are excessive,” Hassebrook said. “These are tough times. A lot of people are sacrificing.”

NU leaders’ salaries shouldn’t set the national pace, he said.

At the same time, he warned, NU can’t afford to fall too far behind.

“You have to stay fairly close (to the salary average), or you risk losing your best people,” he said. “And if you don’t have salaries that are reasonably competitive, it gets really difficult to hire new leadership.”

That was the rationale behind a new initiative at NU that taps private dollars to help boost administrators’ salaries for the 2008-2009 and 2009-2010 years.

The initiative, approved by regents in September, will draw about $271,000 from the NU Foundation to bring the salaries of Milliken, Perlman and the three other NU chancellors closer to their peer averages.

The privately funded salary increases will come on top of state-funded increases.

That’s the right approach, Hassebrook said, because while taxpayers should help invest in good leadership, they shouldn’t be expected to sacrifice too much — particularly during troubled times.

“We have an obligation to provide the people of Nebraska with a strong university that’s going to educate the state,” he said. “If we don’t have effective leadership, we’re going to fail to fulfill that obligation.

“(Compensation) is a critical investment in the future of this state.”

The Chronicle’s survey also included compensation packages of private university presidents for the 2006-2007 year, the most recent year for which data was available. Among Nebraska’s figures:

* John Muller, Bellevue University: $672,022.

* Jonathan Brand, Doane College: $203,944.

* Phillip Dudley Jr., Hastings College: $214,331.

* Joe Gow, Nebraska Wesleyan University interim president (stepped down in January 2007): $111,826.

* Clark Chandler, NWU interim president: $159,705.

Reach Melissa Lee at 473-2682 or mlee@journalstar.com.


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Midwesterner wrote on November 18, 2008 1:34 am:
" The leadership isn't public and consistently transparent with NU's guys. How about some press the quality of that Chicago article? "

 wow wrote on November 18, 2008 3:13 am:
" so the prez of bellevue university makes what JB and harv make put together? Seriously? that is a joke? JB and Harv are a god send for what they do at NU and UNL each. We are lucky to have them. And I hope they never leave/retire. "

 Mark wrote on November 18, 2008 6:04 am:
" AS a state empolyee, I sure don't feel bad for either one. Compared to my peers in other states I'm not being paid comparibly and I sure didn't get a 4.2 or 4.8 percent pay raise. "

 Doug wrote on November 18, 2008 6:27 am:
" These people are already overpaid just for a job title. They are just as overpaid as the CEO's are of AIG and others.Just another reason I am sending my kids to SCC.I am not going to help pay their salary, as you could go to each student attending the university and say what has this person actually done for you that a person with half that salary couldn't do. "

 Whatever wrote on November 18, 2008 6:32 am:
" Who cares? They still make way more than most of us ever will. I am very tired of UNL whining about whatever when it comes to money or measuring us to the rest of the nation in some way. These bigwigs do not pay as much for housing, private club memberships or many other things what they would pay much more for if they lived on one of the coasts. If they don't like Nebraska, hit the road. "

 Lets all free sorry for them wrote on November 18, 2008 6:46 am:
" In most cases in rural nebraska and for a whole lot of people in Lincoln and Omaha these two people housing allowance is more then they make in a year. Maybe it is time that these presidents, CEO, manager take a step back and see what is happen in there world around them. Don't get me wrong by what I'm not saying they don't deserve what they get paid for all the tuff decisions they make and with the buck stopping at their desks, but come on people realize there are people living on a whole lot less and are in must cases happier people. Just once it would be great to see a CEO, President, or like stand up and say no thank-you. "

 HA wrote on November 18, 2008 7:00 am:
" Those two guys are making over 300k and didn't get a raise???? must be rough, my heart goes out to them. If they woke up tmoorrow morning with my bank account they would likely jump off the parking garage. Sorry, I have a hard time feeling sorry for the guy making 300k not getting a raise. How about me and my pregnant wife trying to live off of less than 40k, do an article on that sometime. "

 Right wrote on November 18, 2008 7:07 am:
" I would question whether the "survey" includes cost of living adjustments to achieve an apples to apples comparison. Frankly if Pearlman had not cost the university so much money between the previous AD and Coach then it might seem more reasonable. I think that the current economic crisis has highlighted the dangers of rewarding expensive incompetence. Let concentrate on bring the salaries of everybody else in Lincoln up to national standards of similar sized cities. I am certain that the leadership at UNL is compensated beyond those standards. "

 peggy wrote on November 18, 2008 8:07 am:
" what a shock!! all the employees who do the every day grind,wages are well below other states emplyees also "

 ET wrote on November 18, 2008 8:08 am:
" Oh please. Enough is Enough already with UNL. So some of their people don't get to own another Hummer or another Mercedes S-Class for another year. The economy is bad; sometimes you have to sacrifice, and that includes the overpaid rich white guys at the top. Must be rough have to make it on less than 400k year. "

 foxspit wrote on November 18, 2008 8:11 am:
" Does that $672,000 salary at Bellevue University raise any red flags for anyone besides me? What's up with that? "

 appalled wrote on November 18, 2008 8:12 am:
" I don't understand why we put up with giving these deadbeats so much money. I don't think people realize that these guys don't have anything to do with the actual coaching. They just hire and fire the real coaches. I'd take $300,000 a year to do that job! "

 stignob wrote on November 18, 2008 8:17 am:
" Too compare salaries from one university to another is silly. OSU has 40-50,000 students, NU never has and never will match that student body. "

 Are you kidding wrote on November 18, 2008 8:27 am:
" These men do have positions of high responsibility. They should be compensated for those responsibilities. When is enough, enough? These salaries are ridiculous, they shouldn't be compared to those of other University's Presidents as the cost of living in the area plays into the salary. I, until last year had lived in Nebraska, lived in Nebraska my whole life. I moved to PA to accept a position similar to that which I had in Nebraska. I sold my home in Lincoln and purchased a comparable home here, which cost me twice as much. My salary did not increase to cover that much of a cost change. These men make extremely good livings for Nebraska, if they are not happy with their compensation, quit and move somewhere that pays more but, in today's economy jobs are tough. I think some people need to be content with the cards they are dealt. I wish I had a six-figure salary. I would gladly do any job that paid me so well. This is a waste of tax payer funds, I think they should be taking a salary cut, rather than increase! "

 Matt wrote on November 18, 2008 8:28 am:
" I don't get how you "risk losing the best people" by not giving excessive raises? Since when is public education the field to go into the make it big? If they TRULY care about education, then it shouldn't matter if they are making big bucks. I'm not saying they should be making less, I'm just saying tith those kind of salaries in a low COL state like Nebraska, they are certainly living large! "

 Pie in the Sky wrote on November 18, 2008 8:41 am:
" The real facts are that all of these salaries all over are just too high. Much to the disappointment of some of you. Higher salaries are no guarantee that the performance of the individual will be anything but average. There is no real"real" reason for any salary to be over 75,000. This is why our Schools are having so much trouble financially. All of these are top heavy in Salaries to the Top people. Learning takes place in the class room not in the offices of the President. Get money back into the classroom and results from colleges will start exceeding expectations. "

 NU grad wrote on November 18, 2008 8:45 am:
" I would be interested to see how those salaries elsewhere compare to the cost of living in those places. Straight salary figures alone do not tell the whole tale... "

 greedy pres. wrote on November 18, 2008 8:50 am:
" I'll call it now, these greedy presidents throughout the U.S. are going to be the downfall of the universities. They're going to end up like the banks and auto companies at this rate. Shame on them for putting the financial burden on the students so they can have a fat paycheck. "

 Sign of the times wrote on November 18, 2008 8:52 am:
" While not a reactionary, I find these salaries a sad sign of the times. Not only are these people making lots of money in base salary, borrowing a page from their brethened on Wall Street, they come with tidy off book packages that shield them from the costs of living that regular, salaried people have to assume. Housing allowance? What by gone era does that harken back to? Rather than look at the inflated national average for guidance, I'd prefer that we look back at historic averages and adjust for inflation to come up with a reasonable salary for this type of work. While I know this would be WAY below what the national market is for this type of position in America circa 2008, you have to wonder if the market for any type of executive salary in2008 America reflects anything more than the hyped up inflationary pressures of this elite class themselves. I really doubt that they are so gifted that many other folks wouldn't be able to fill in their shoes for a more realistic salary that reflects the depression era economy we are now entering. Hopefully, as is the case with finance execs, this madness of elitist executive pay will come to an end. "

 Jimbo wrote on November 18, 2008 9:06 am:
" This represents one of the problems that is causing executive salaries to soar out of control. Executives love to compare their salary or their raise to those of other executives and, if they are below average, argue that they deserve more. Of course, if they get it, that just raises the "average" next year, and some other executive gets to make the same claim. Surprise! Executive salaries and compensation packages go through the roof! No doubt we need good executives, but come on! These aren't super-people - they're smart hard-working folks, but so are many people getting paid far less. Has anyone done a study to see if university janitors are making salaries comparable to their peers, or administrative assistants, or professors, etc.? The "big three" CEOs in Detroit receive compensation packages that are absolutely stunning by any standard, but they weren't smart enough to avoid their current predicament. I'm tired of reading about executives with huge compensation pacakages who thoroughly screw up their companies, only to be fired with "golden parachutes" that exceed the lifetime earnings of most of their employees. Throwing money at executives is a "mug's game;" it's not the answer to quality leadership, and it's not the standard by which to judge the university. But, don't expect to hear that from the executives. "

 UNL worker wrote on November 18, 2008 9:25 am:
" It is pretty disappointing that most university employees will never see a 4.2% increase in pay, and 4.2% of almost nothing isn't much compared to 4.2% on amounts over $250,000. I realize we need to stay competitive with our salaries for top officials, but the problem isn't only with the top. I'm grateful for my job and benefits but my pay would be much different in the private sector. "

 Scott wrote on November 18, 2008 9:25 am:
" Why do they get a housing allowance, can't he afford a place in lincoln on $350K???? "

 Green with envy wrote on November 18, 2008 9:33 am:
" I'll keep watching for all the posts from the jealous "Joes" who think these guys are overpaid. Quit whining about it and spend the time and money to get a Ph.D. if you are going to complain. "

 Fearless wrote on November 18, 2008 9:35 am:
" Most CEO's and Hospital Administrators and Univeristy Presidents belong to a special CLUB called the "Good Old Boys Network" designed to recommend each others salary and benefit packages. It's a wonderful deal because it allows one to live in the rarified air of the upper eschelon of over-paid executives without a guilty conscience since you are comparing your salary to other over-paid executives. It is a part of the problem we face in America where the control of economic reality is out of touch with the everyday working American. We take Institutions that are designed to serve the citizens of the State and turn them into Corporate entities that pillage the tax coffers and make State and non-profit Institution CEO's inordinately rich at the expense of those who pay into the taxing mechanisms that assure cash flow. Even when Foundations are developed to secure these salaries; it results in a diversion of cash flow that could be better used to make education affordable for more students in our State. What a deal! "

 Not Happy wrote on November 18, 2008 9:40 am:
" Who do these guys have to answer to? Who does their yearly evaluations? I for one am not impressed with their performance let alone get any kind of raise in these hard economic times. "

 JE wrote on November 18, 2008 10:00 am:
" Frankly, I think both Perlman and Milliken should be ashamed to take that much money in the current financial climate. I suggest they each give half of it back to the university and apologize for being greedy. They'd still be very well paid by Nebraska standards (a much more meaningful standard for comparison than that of executives in other parts of the country), and jobs would be available for TEN "normal," hard-working Nebraskans making over $30K each. I'm sure we can find ten people in Lincoln who would jump at the chance to work their butts off for the university to make that money. If Perlman and/or Milliken want more, I say, "good bye and good riddance." "

 Buddha wrote on November 18, 2008 10:27 am:
" I think the President of Bellevue University has a higher salary because he may have to have his own housing. I know that Doane College provides Jonathan Brand a house, so that's why his salary is much smaller than the others. The same may be true for Dudley at Hastings. "

 Jacob wrote on November 18, 2008 10:31 am:
" To "Green with envy": I earned my PhD, which is a requirement in my current position where I earn about $86K. I love my work and it allows me and my family to live fairly well here in Lincoln. My folks stressed humility in our upbringing, though, and Dad thought I was a bit too full of myself a couple of months before receiving my doctorate. I remember his words: "You're not smarter than everyone else, just more educated in this one field. You're a good man, but the world is full of good men - don't think you're better than them." Clearly, he was the smart one, and I hope he'd be proud of me for remembering. "

 no salary increase at all wrote on November 18, 2008 10:32 am:
" The way most Nebraskans see it Harvey should not get any salary increase due to his boneheaded decisions. Harvey owes the University about 5 million. Latest fiasco with Bill Ayers demonstrates a track record of poor decision making. "

 my thought wrote on November 18, 2008 10:32 am:
" That's just great. I suppose now they are going to feel underpaid despite the fact that they make plenty to thrive in Lincoln. "

 why compare wrote on November 18, 2008 10:34 am:
" Our cost of living is lower here. Why compare? Besides, what do they do besides firing and hiring atheletic director? Why don't we compare those salary to the president's salary. They don't have the pressure and the responsibility like the president and yet got pay as much as the president. Give me a break! I think they got pay more than the governor too. "

 all things considered wrote on November 18, 2008 10:51 am:
" You people forget that the University drives a good chunk of the economy in this state. Its students probably bring in half the money spent in Lincoln, and it has to be one of the largest if not the largest employer in the state. The university isn't taxpayer benevolence but a BUSINESS. Growing the university is the best way to bring more money and brains into the state, which we desperately need. See how much it costs you to head hunt and find a replacement for these guys. Its cheaper to keep them on board than to find someone else. "

 Private Money wrote on November 18, 2008 11:05 am:
" Ceteris paribus, I'd rather see the taxpayers pick up the tab than have university administrators paid by private, undisclosed sources. Doesn't the Accountabilityand Disclosure Commission require such arrangements to be public information? "

 mike wrote on November 18, 2008 11:17 am:
" What? Salaries to low? HAHAHAHA get real!!! We live in the midwest and these leaders make more than 99.99% of Nebraskans so why pay them more? The way the University is heading (down), they should get a paycut. "

 UNL Worker II wrote on November 18, 2008 11:51 am:
" i work at unl and yes, i could make a little bit more in the private sector. however, the benifits of working at unl far out weigh a few dollars per hour. "

 York wrote on November 18, 2008 12:40 pm:
" Maybe it is time to hire a couple underdogs who can be more productive and cost less. From Wall St. to GM salaries and wages are being cut, it is time NU-UNL show us how they can also participate in the challenge to burst the salary bubble that revealed escesses and poor oversight by board of directors. The Regents need to get a grip and keep salaries in check with where the minimum wage is.. "

 voter wrote on November 18, 2008 1:10 pm:
" The simple fact is that we are constantly bombarded with "Nebraska, the Good Life," plus how our cost of living is better than the rest of the country. Then, when it comes to paying administrators in education; their salaries are always compared to other states. What would happen if we said the replacement will be paid the same as the outgoing administrator. Doesn't it irritate the teachers, etc at the front lines to see them get a small percentage pay raise and yet the administration always seems to get the 10 to 15% raises. Look at the difference between the outgoing and incoming head of the State Department of Education. How can that possibly be justified. "

 Agree wrote on November 18, 2008 1:56 pm:
" as a state employee I work long, hard nights and what did I get...a 2% increase PLUS a huge health insurance increase. Oh so I netted $32 less. Have you noticed with all these insurance increases, layoffs etc, the CEOs are not affected? They have their cushy jobs and get a bigger expense allowance to cover increases. Why a mother or small family with children are again not eating. "

 Jorge wrote on November 18, 2008 1:56 pm:
" These guys are rooted in Nebraska and with law degrees hardly compare to someone like: Amy Gutmann, Ph.D. President, The University of Pennsylvania. Gutmann earns allot more, but look at her credentials and accomplishments! They are simply UNL grads, nothing spectacular and fluffing them up with higher salaries won't make them anything more. "

 Its a myth wrote on November 18, 2008 2:00 pm:
" Interesting statement brought up by "why compare". Living in Lincoln is NOT...repeat NOT cheaper than many other places. The property taxes alone are higher than many other places...and income tax is high and it cost a fortune to license your car....groceries are just as expensive as many other locations...and on and on. Granted...there are cities that are far more expensive...but those are typically larger than Lincoln...so moving here at the same salary actually was a pay decrease for me. As long as the University is growing, the higher ups deserve every penny...do we ever question the salaries of our coaches? "

 KrissyK wrote on November 18, 2008 4:27 pm:
" People say and think that the University has these great benefits, and I never saw that! Maybe they're better for faculty, but as staff, the inadequate pay coupled with paying for insurance and parking was REALLY hard and didn't better my financial situation--that's for sure!
A point about the salary situation that I haven't seen made is, part of what makes that job worth so much money is because they become the object of blame and scrutiny, as y'all are doing here. Being in that kind of position that you have to take a lot of heat is no something you can boast when you have little higher education. "

 Mark wrote on November 18, 2008 7:11 pm:
" Instead of writing here and complaining, call your state senators, the regent for your area and others and tell them to CUT the salaries of these people by 20% and use that to take care of improvements. If they dont like it, FIRE THEM. "

 Not A Myth wrote on November 19, 2008 7:55 am:
" I have lived in places with no income tax (cost of good is more). I have lived in places with with no sales tax (property tax is comparable and the income tax was way higher). Cost of real estate, cost of living, quality of life. We moved back to Lincoln after living on both coasts and in between. It is a cheap place to buy a house. My property taxes are way cheaper than the cost of sending my kids to a comparable quality private school in larger cities.

The CEO class is doing fine. While most other salaries in the US stagnated or grew slowly the upper 5% experienced a significant increase in the Bush years. It has been great but if there is not at least some equity across socio-economic classes then it gets bad for everybody.

I appreciate the job that Milliken has done but] in terms of buying power and cost of living UNL is doing better or similar to comparable schools. You can look up the salaries online and run a cost of living analysis and it becomes very clear. "

 re. not a myth wrote on November 19, 2008 8:43 am:
" That's great you have found life in Nebraska to be cheaper than other places you have lived...but certainly not all of us can say that...the fact is the cost of living here is higher for me so the argument is subjective. Housing may be relatively affordable...but saying that its so much cheaper for all people to live here is false. I moved here from Miami, and other than housing, and insurance, everything else is more expensive...and I have yet to see why it is called the good life. "

 SAM wrote on November 19, 2008 2:57 pm:
" Here is a novel idea from Missouri:

University chancellor takes voluntary pay cut


ST. LOUIS — Washington University's chancellor says he will take a 5 percent salary cut, postpone or eliminate building projects, restrict hiring and slow faculty salary increases to ensure the institution's strength during the nation's economic downturn.

Chancellor Mark Wrighton made the announcement in an email to the university community on Wednesday.

He said the value of the university's endowment has declined 25 percent since July 1, and research support was expected to level.

He said the university also faces constraints on the rate of tuition growth, uncertain prospects for philanthropic support, pressures on healthcare costs, and the prospect of increased needs for financial aid.

On Monday, the University of Missouri system imposed a hiring freeze at all four campuses. "

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