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Our universities are out of control

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Illinois

* Ugh…

A University of Illinois official says the outgoing Urbana-Champaign chancellor will receive $400,000 as part of her resignation.

U of I spokesman Tom Hardy says Phyllis Wise’s contract includes a $500,000 retention bonus — $100,000 for each year she stayed. She’s been chancellor for four years.

Wise announced Thursday she’s resigning effective Aug. 12. She cited a range of “external issues” she says have become a distraction.

* But that’s not all…

Wise, 70, is expected to join the faculty after her resignation is effective next week, though, according to her contract, she is first eligible for a one-year sabbatical. Her salary is $549,069 this year, and her new faculty salary is expected to be about $300,000. [Emphasis added.]

There’s also yet another new scandal under Wise’s tenure. Click here.

posted by Rich Miller
Friday, Aug 7, 15 @ 3:37 pm

Comments

I’m pro higher ed, but I don’t have the words for how absurd this is…

Comment by Anonymous Friday, Aug 7, 15 @ 3:42 pm
They’re still paying Hogan over $300,000 a year at UIS to teach one or two classes a year.

Comment by Anonymous Friday, Aug 7, 15 @ 3:43 pm
Public education administrator salaries are all out of control. They seem to live in an alternate universe, without any brakes.

Comment by walker Friday, Aug 7, 15 @ 3:45 pm
What’s sad is that an institution has to create a bonus to convince an administrator to stay in their position and not search for another job. Sadder than that is that it’s necessary sometimes. SIU’s Randy Dunn put YSU into a crisis after leaving seven months into the job. Shouldn’t we expect university administrators to show commitment to the positions after receiving such exorbitant salaries?

Comment by NIU Grad Friday, Aug 7, 15 @ 3:45 pm
I would have felt OK about this if she fired the athletic director, football coach, and women’s basketball coaches before she left.

Comment by SAP Friday, Aug 7, 15 @ 3:47 pm
She will join former U of I presidents Joe White, Michael Hogan, and former UIUC Chancellor Richard Herman as former executives who were forced to resign due to scandal or poor performance, but who ARE STILL ON THE UNIVERSITY PAYROLL.
The most important reform needed is that executives hired by the U of I not be guaranteed lifetime jobs if they fail in their executive duties.
How much money are we talking about? From the 2014-15 salary book:
Michael Hogan - $308,269
Joe White - $295,180
Richard Herman - $200,000
and to be added, Phyllis Wise - $300,000

That’s $1.1 million PER YEAR in taxpayer money being paid to failed U of I administrators. Plus they are earning lifetime pension benefits as well.

Want to see executive salary reform? Here is where it needs to begin.

Comment by Filmmaker Professor Friday, Aug 7, 15 @ 3:47 pm
Considering what happened with my kid’s visit to UIS today (one of the few that has her major) I am ok with spending more for her to go out of state at this point.

Comment by OneMan Friday, Aug 7, 15 @ 3:48 pm
IBHE just came out strongly in support of current executive compensation policies.

Comment by Anonymous Friday, Aug 7, 15 @ 3:49 pm
It called termination for cause–she lied to the universities lawyers about the emails–probably had to cough them up under the civil suit discovery subpoena and got caught–FIRE HER–DONT GIVE HER 400k and a lifetime 300K job when she can be fired for cause.

Comment by anon Friday, Aug 7, 15 @ 3:51 pm
This follows the often touted private sector example. Failed execs get golden parachutes while workers are stripped of pensions and health insurance.

Comment by Qui Tam Friday, Aug 7, 15 @ 3:51 pm
At least she won’t be collecting her SURS pension yet.

Comment by Name/Nickname/Anon Friday, Aug 7, 15 @ 3:51 pm
Please let me add this note:
When these executives are hired at huge salaries, it is always accompanied by the comment that equivalent CEOs in the corporate world earn far less. But you can see how the comparison to private sector CEOs is ridiculous; how many of these people were hired to be CEOs in private industry? Answer: none. That’s why they are still on the University payroll.

Comment by Filmmaker Professor Friday, Aug 7, 15 @ 3:52 pm
“External issues”

Like the Trib getting a hold of those e-mails, you thought you could hide…

Comment by OneMan Friday, Aug 7, 15 @ 3:52 pm
“Our Universities are out of control”

Well, one of ‘em is.

Still, no one bats an eye about the salaries paid to football and basketball coaches.

Comment by Deep South Friday, Aug 7, 15 @ 3:52 pm
Anon 3:51PM

exactly. yet. but it’s a comin’.

Comment by Filmmaker Professor Friday, Aug 7, 15 @ 3:54 pm
Deep South

Coaches salaries primarily (not totally) come from private money. I find them obscene too, but not an even comparison.

Comment by Filmmaker Professor Friday, Aug 7, 15 @ 3:55 pm
According to the Board of Higher Educations salary search site at http://salarysearch.ibhe.org/search.aspx , not all Illinois State Universities pay their top person that much money.

Presidents:
Northeastern: $294,800
GSU: $298,603
EIU: $254,167
WIU: $270,528
CSU: $199,500

And in that database, only CSU and GSU list anything under additional compensation.

Comment by Joe M Friday, Aug 7, 15 @ 3:56 pm
I’ve been in academia for 40 years, and the “fattening up” of university “leadership” bureaucracies, both in number of associate vice provosts & the like, and in hugely bloated salaries, is obscene in state after state. State legislators ought to enact policies declaring that *no* public university administrator can be paid more than say the Governor or gubernatorial cabinet members. Academia *cannot* be left to fiscally discipline itself, for it’s just as out of control as self-dealing corporate executives.

Comment by The Historian Friday, Aug 7, 15 @ 3:56 pm
Thanks for the perspective, Filmmaker Prof.
Who signs off on these decisions? (Sorry if it is laid out in the Trib article. I didn’t want to subscribe to read the article.)

Comment by Austin Blvd Friday, Aug 7, 15 @ 3:56 pm
A big middle finger to Jim Edgar who signed the legislation giving the Governor appointment power for the BOT instead of electing the BOT. It’s been downhill and politicized ever since.

Comment by Chief Illiniwek, RIP Friday, Aug 7, 15 @ 3:56 pm
If Rauner wants to meaningfully “Shake Up” something in a positive way, here is the place to start.

Clearly no coinkydink that Wise got the boot (with a freaking golden parachute) the day before this FOIA drop.

Save a fast $100 million by killing Wise’s Medical School (aka new Carle moneymaker because a million bucks a year doesn’t go as far as it used to) for starters.

Oh, and has anyone called Genius Kennedy for comments?

Comment by Arthur Andersen Friday, Aug 7, 15 @ 3:58 pm
(Full disclosure: I’m part of the non-negotiated rank-and-file at a State university.)

I am always aghast at the myriad perfectly-legal-but-unethical-as-all-get-out practices all over the state university system. Resignation parachutes, retirees who then return to work 90 days later in the exact same capacity, and so on. ANd it’s only exacerbated when IBHE all but endorses the practices.

I really do love what I do and enjoy working in the public sector of higher education…but man, this stuff is always disturbing and disheartening. Sometimes makes me rethink my career choice.

Comment by thunderspirit Friday, Aug 7, 15 @ 3:58 pm
And the U of I is probably going to be claiming financial hardship over State funding. I have never understood why business or government gives farewell bonuses, those are too reward good employees to encourage them to stay.

Comment by Ahoy! Friday, Aug 7, 15 @ 3:58 pm
I love ya, Chief, but I don’t agree on the elected board. Not that there haven’t been some horrendous appointments made.

Comment by Arthur Andersen Friday, Aug 7, 15 @ 4:01 pm
How does this compare to private universities? After all, that’s all that matters isn’t it?

Comment by Precinct Captain Friday, Aug 7, 15 @ 4:01 pm
I would go as far to say that administrator pay in all of these little school districts throughout the State are out of control. Yet the teachers are vilified in the local newspapers.

Comment by Triple fat Friday, Aug 7, 15 @ 4:03 pm
When I grow up I want to be a university administrator.

Comment by Anon Friday, Aug 7, 15 @ 4:05 pm
Sniff Sniff is that College of DuPage I’m smelling? Tried covering up his “exit” package as well. At least they didn’t offer him a year long vacation and a teaching position.

Comment by Anonymous Friday, Aug 7, 15 @ 4:05 pm
I’m not saying it is good what is happening at the U of I. But after the huge economic recession that started in 2008, many of the top financial houses (that received federal bailout money) still gave their top executives huge bonuses and continued salaries. And in many cases those companies had failed (the reason they needed a bailout) - and some would say those company’s actions were the cause of the recession. Universities are not unique in paying huge salaries and bonuses for even less than stellar performance.

Comment by Joe M Friday, Aug 7, 15 @ 4:05 pm
No problem. Just raise tuition to foot the bill for these buyouts and salaries. Students can borrow the money to pay the higher tuition. s/

Comment by Sir Reel Friday, Aug 7, 15 @ 4:06 pm
Outrageous, again. The answer is to stop sending your kids to any university with sports and athletic programs and ridiculous administrator salaries. Plenty of fine colleges around the U.S. and world, but it’s up to parents to stop playing the rat race game.

Comment by No Raise Friday, Aug 7, 15 @ 4:06 pm
As I’m about to write $55k in checks for 2 kids to go to college, both at IL public unis, one at UIUC, my alma mater, I can’t even begin to describe how (banned word) I am.

Comment by Arthur Andersen Friday, Aug 7, 15 @ 4:11 pm
=Public education administrator salaries are all out of control.=

I disagree and, yes I am an public school administrator. If you look at the data for K-12, there are some big numbers but most are in line given the responsibilities. If your comment pertained more toward high ed, it is hard to disagree but that is the market. I have issues with the golden parachutes, k-12 or higher ed.

=Shouldn’t we expect university administrators to show commitment to the positions after receiving such exorbitant salaries?=

In a word, no. What makes this any different from a CEO or other sector job? The market is created by supply and demand. You may be surprised at how few people want these roles.

This has been going on forever BTW- Check NIU back in the mid 80’s and one time president Clyde Wingfield.

http://articles.chicagotribune.com/1986-05-23/news/8602070212_1_presidential-home-niu-president-reign

Comment by JS Mill Friday, Aug 7, 15 @ 4:13 pm
Who sets the market for these deals?

Seriously, are we to believe that you couldn’t land a highly qualified administrator, some up and comer, at half the price? I find that hard to believe.

Comment by Wordslinger Friday, Aug 7, 15 @ 4:13 pm
=FIRE HER–DONT GIVE HER 400k and a lifetime 300K job when she can be fired for cause.=

This. If it can happen, this is how it needs to go.

Comment by JS Mill Friday, Aug 7, 15 @ 4:14 pm
I think that part of the problem is that there is a shortage of people qualified to be, and who are good at, being college presidents. “If it was easy, then everyone would be doing it” (becoming a college professor).

That’s what my father used to say about farming. And the same applies to a lot of professions.

Comment by Joe M Friday, Aug 7, 15 @ 4:14 pm
I meant to say: “If it was easy, then everyone would be doing it” (becoming a college PRESIDENT).

Comment by Joe M Friday, Aug 7, 15 @ 4:16 pm
= but not an even comparison.=

Lol!! I would actually like to see some proof that these multi millionaire coaches are not being paid by university dollars. You hear that, but some proof would be nice.

Comment by JS Mill Friday, Aug 7, 15 @ 4:16 pm
@Triplefat- Just asking since you didn’t offer, what is your basis for making your statement? Just curious? I mean, I am sure you have some data, and a rationale besides just raw emotion.

Comment by JS Mill Friday, Aug 7, 15 @ 4:19 pm
Joe M, I’m not so sure. We’ve had some real whack jobs at Illinois unis over the years.

Consider the loon who went apey on the grounds crew at ISU not so long ago. He was a real catch?

Comment by Wordslinger Friday, Aug 7, 15 @ 4:20 pm
Really good millionaire coaches win and bring in millions and millions of dollars to the university, which fund the minor sports and a whole lot more.

Comment by anon Friday, Aug 7, 15 @ 4:25 pm
==Joe M, I’m not so sure. We’ve had some real whack jobs at Illinois unis over the years.==

I am sure they then moved on from Illinois to get an even higher paying job in academia in another state. Good help is hard to find!

Comment by Joe M Friday, Aug 7, 15 @ 4:26 pm
The chancellor’s salary bothers me a lot less that the head football coach’s:

Base salary: $400,000
Guaranteed additional compensation (Feb. 1, 2014-Jan. 31, 2015): $1,400,000

Comment by JoanP Friday, Aug 7, 15 @ 4:27 pm
@anon- Just wondering which Illinois public university athletic program is bringing in millions above and beyond what the program costs due to “winning”?

Comment by JS Mill Friday, Aug 7, 15 @ 4:28 pm
U of I, but in a neighboring state. Pretty much a similar story.

“University of Iowa President Sally Mason would rank as the 214th highest-paid employee in the state of Iowa even after retiring in July, based on current salary information.

When Mason transitions this summer from president to president emeritus, her salary will continue at 60 percent of her presidential base pay. Her salary is $525,828, so 60 percent would be $315,497. Iowa state Board of Regents staff said Mason will receive that annual salary — which is only $36,000 less than the president of the University of Northern Iowa is paid — until she retires as a UI faculty member.”
- from a 2/8/2015 Iowa City Press article.

Comment by Joe M Friday, Aug 7, 15 @ 4:29 pm
Word, and the irony of the ISU kook was that he was hired over a well-qualified internal candidate who got the job anyway after said kook was canned, about a million bucks later.

Comment by Arthur Andersen Friday, Aug 7, 15 @ 4:37 pm
- father used to say about farming. And the same applies to a lot of professions. -

The barriers to entry for farming, as well as higher ed administration, have very little to do with qualifications.

Comment by Daniel Plainview Friday, Aug 7, 15 @ 4:40 pm
U of I needs the best top faculty they can get. The regionals need good faculty.

On the other hand, no one needs a $500,000 a year university president, and those presidents’ salaries draw up the next couple of layers of administrators’ salaries.

We pay CFOs and Deans more than we pay the state Auditor General or Comptroller or Treasurer.

For a small one-time finder’s fee I would be happy to talent hunt for those jobs and save the universities a ton.

Comment by steve schnorf Friday, Aug 7, 15 @ 4:59 pm
JS Mill - Considering the expression about all politics being local, perhaps my post was too broad. Maybe I should have limited my remarks to only involving my local school district. I thought about adding that there are too many small community school distrcts in dire need of being consolidated with other districts. That consolidation will allow them to operate more efficiently and lessen the gravitational pull of becoming top-heavy. I even thought of including a statement about how Governor Quinn pushed consolidation but was thwarted by the community school districts and their kingdoms within. I almost did that, but I thought saying less was better. Heck JS it might have some emotion tied to it. You see, I personally believe that a superintendent,of a small community district with less than 3,050 students, is undeserving of a 2014 salary of 157,837, especially when the district covers 100 percent of administrators pension while the teachers are still paying their pension portion. My wife is a Master’s level teacher in this district and last year her Union negotiated a new contact with the school board. During the negotiation process the district superintendent vilified the teachers in the press, characterizing them as being overpaid and greedy for not agreeing to a severe wage cut. To give you some perspective, in 2014 a Teacher with a Master’s topped out at 72,300 while still paying their portion of TRS. I don’t know JS… What do you think? I want your non-emotional opinion on whether the superintendent described above is being conpensated appropriately. Why is it that the administrators get their portion paid and the teachers don’t? Do you think this Superintendent of a small piddly district had any business characterizing the teachers as being overpaid and greedy? Yep- come to think of it JS, emotion definitely played a role in my post. The emotions involved, however, don’t make the post any less true.

Comment by Triple fat Monday, Aug 10, 15 @ 9:53 am