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Feb 29 2016

As Tuition Skyrockets, College Presidents Are Paid Far More Than CEOs

Leftist demagogues frequently denounce CEOs for allegedly making more than enough money. Yet you don’t hear them complaining about the fattest hogs gorging at the government-subsidized trough formerly known as higher education:

College presidents on average earn $377,261 annually, or more than twice the average pay for CEOs, who take home about $176,840 on average each year, according to new research from the Federal Reserve Bank of Cleveland.

At the same time, American students face ever-increasing tuition bills, with the growth in college costs for years dwarfing the rate of inflation.

As a generation digs itself ever deeper into debt for education of deteriorating quality, it isn’t only the college presidents who ride high on the gravy train:

While the president is just one employee of a college, he or she represents the tip of the iceberg in terms of administrative pay. The bigger question, the researchers note, is whether reducing total administrative salaries would help to put a brake on rising college tuition.

Previous research indicates that there may be a link between a college president’s high pay and a student’s debt load. Graduates of state universities with the highest-paid presidents typically end up with higher debt loads than the average state university graduate, the Institute for Policy Studies found in 2014.

The study also found that schools with highly compensated administrators tend to reduce scholarships and rely on low-paid faculty labor such as adjuncts, rather than full-time professors.

Regarding the starting compensation offered prominent Democrat Big Sis Napolitano, when she became UC president in 2013,

The University of California has leased an Oakland residence for incoming system president Janet Napolitano for $9,950 a month, officials said Monday. Napolitano, the former U.S. secretary of Homeland Security and former governor of Arizona, will be provided the housing plus an annual $570,000 salary, $8,916 a year for car expenses and $142,500 for one-time relocation costs.

Yet not a peep from social justice warrior Shrillary Clinton, who finds it intolerable that CEOs are paid the compensation determined by their value on the free market. Shrillary herself makes $15 million per year, without offering society any benefit in return.

Where commies might start if they really want to eliminate income inequality.

On a tip from Jester.

  • Occam’s Stubble

    I can’t think of anything that’s more obviously in a bubble than college tuition. When it bursts…

  • calmly_observing

    I haven’t researched it, but it would probably be very enlightening to see how much the administrative costs (not teaching/research costs) have increased both in total amount and in proportion to total college budgets. I suspect it has become a significantly bigger part of the overall annual spending by both and private institutions. And with little to show – meaning no better prepared students and perhaps less prepared in many fields outside of STEM.

  • Jack

    Marxism is always profitable for those at the top.

  • The high tuition is also reflected in the perks the students get. I know when I went to school we didn’t have massive gyms for working out, swim up bars in huge outdoor pools. Bowling alleys etc etc etc.

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  • calmly_observing

    At least with facilities you can draw a kind of dotted line between your costs and service. With a bloated administration you are simply paying more to employ people who do little to improve the average student’s quality of education or campus life. If you think facilities are too costly, you can shop for a school that isn’t so extravagant. Not sure you have many options to fight a bloated administration.

  • 762×51

    Even in the old Soviet Union, the poster child for Marxism, there were millionaires, all within the ruling elite, weird, huh?

  • 762×51

    Universities are and extension of government, private schools excepted. They naturally grow in the presence of money, like plants in the presence of water. Little has changed in the STEM areas, maybe a few new degrees for new technologies like robotics, but the core of STEM, mathematics, hasn’t changed much in the last hundred years, since General Relativity.

    What has changed are all the new degrees in useless studies, Degrees of Relative Kaka(DORK). Things for which there are no related jobs in the private sector. LGBT Studies, Womyn Studies, Navajo Lesbian Poetry, like that.

    Making the system bigger is all that counts, its supposed results, educated people prepared for a career, are secondary or even tertiary, just like government.

  • Chocolate&Cheese

    It is long past time to get big money out of education. Beware the Government-Education Complex™

  • Get the alumni donor class mad about the waste of money on administroids?

  • calmly_observing

    I find donors the most perplexing. It seems that very few public controversies, even ones that are clearly rights violations such as free speech, have any impact on endowments and support. Every now and then you hear funding threats from the elected class in states like TN. But as best I can tell, even UVA has never paid a price for their horrible reaction to the false rape allegations. And clamping down on free speech is a growing trend, not a dying one.

    When administrators can employ their ideological will without financial repercussions it will continue. The press they receive may be rewarding for some.

  • KauaiGoneGin

    Ever wonder why Universities have become socialist indoctrination centers? Try investigating the role of the ultra rich and their tax exempt foundations. They began funding the quiet takeover of the nation’s schools a century ago and you are seeing the success of their plan.

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