The California State University Board of Trustees voted to give CSU executives a pay raise at their meeting last week in Long Beach.
This decision comes as student fees are set to increase by another 10 percent approximately, a topic that was also discussed at the meeting.
The CSU Board of Trustees voted 15-2 Wednesday to raise executives̢۪ salaries by an average of 12 percent.
Fresno State President John D. Welty̢۪s salary went up by13.3 percent, from $263,989 to $299,000. This figure is marginally higher than that of most other CSU executives, but not the highest.
Over the last 10 years, salary increases for CSU executives have ranged from 66 percent to 100 percent, depending on the campus. Fresno State̢۪s president̢۪s salary was $157,716 in 1997, or a 90 percent difference from this year̢۪s figure.
Brian Ferguson, communications specialist for the California Faculty Association (CFA), said the pay increase for executives ranged from 9 percent to 18 percent.
“This is on top of the 37 percent raise they got in 2005,â€Â Ferguson said.
Some CSU executives claim that large salary lags exist in executives’ salaries compared to other, similar college systems—upwards of 46 percent, according to the Chancellor’s office.
But Ferguson was skeptical.
“The CPEC [California Postsecondary Education Commission] picks a random sampling of colleges around the nation supposedly comparable to CSU,â€Â Ferguson said. “But private colleges are also included in that.â€Â
Ferguson said executives at many private institutions may make as much as $350,000 to $400,000 a year.
“Bottom line is, most of our executives make more money than the president of the United States,â€Â Ferguson said.
President George W. Bush earns $400,000 per year, and some college executives̢۪ salaries are indeed approaching that level.
Trustee and Lieutenant Governor John Garamendi and others urged the Board of Trustees to kill the salary increase motion at least until after Governor Arnold Schwarzenegger had signed two pieces of CSU reform legislation on his desk.
One bill would require a public forum before executive decisions can be made, so as to prevent backroom deals that negatively impact the classroom. The other would tie salary increases the work performed by the CSU executives.
Ferguson called the pay raises “bad business,â€Â as it comes on the backdrop of increased student fees and overcrowded classrooms.
Student fees have shot up by 94 percent since the Higher Education Compact was enacted in 2004, Ferguson said.
He explained that the compact was a deal put together between the governor and the CSU and UC systems in response to a recession and a large state budget shortfall at the time. The goal is to maintain stability in funding for the CSU system.
“But they made a deal with the devil,â€Â Ferguson said of the CSU executives.
He explained that the student fee increases are now set in stone for each year through the life of the compact.
The new fees won̢۪t go toward the classroom, infrastructure or staff salaries, Ferguson said.
Instead, they will partially go toward paying off annual CSU budget shortfalls, said Esmeralda Santos, a Fresno director of CSU legislative affairs.
“Part of it [the new fees] will compensate for shortfalls in the CSU budget,â€Â Santos said.
Santos said that due to the compact agreement, student fees are set to increase from 8 percent to 10 percent every year, through at least the remainder of the decade.
The amount of the student fees increase won̢۪t be finalized until March.
In the meantime, Santos said Associated Student governments are planning to lobby the legislature to buy back at least some of the 10 percent increase, perhaps bargaining the raise down to 5 percent or less.
Russell Statham, Associated Students, Incorporated Vice President of Finance, said the California State Student Association (CSSA), of which he is a board member, is anticipating a 10 percent increase in fees.
Statham and others will lobby the legislature for a buy-out, although he wasn̢۪t banking on much success.
“The Legislature bought out the fees two years ago,â€Â Statham said. “But it [2006] was also an election year.â€Â
Regarding the CSU executives̢۪ salaries, Statham, who serves as chair of university affairs for CSSA, said the organization took an official position opposing the increases at their meeting in San Diego last week.
But Fresno State was just one of two universities represented that voted “noâ€Â on opposing the salary increases.
Statham, who holds one of those votes, explained that since pay for top CSU executives is lagging at an average of 46 percent behind executives from comparable universities, he believed it was important to “support equitable pay, just as we’ve supported increases for staff in the past.â€Â
Statham said the CSU executives play a pivotal role in impacting college life for students, and thus it was important to retain them through just compensation.
He also called for perspective, arguing that the approximately $850,000 total increase for executives was very small compared to the overall CSU budget, which increased 7 percent to $4.3 billion this year.
Just the same, opponents denounced the raises, linking the issue to more financial strain on students through higher fees, and neglect of the classroom.
Trustee Ricardo Icaza, who provided of the two “noâ€Â votes, denounced the executive pay raise.
“In an era when we continue to raise student fees and classrooms are becoming more and more overcrowded, it is absurd to consider a pay increase right now,â€Â Icaza said.
“Students are working multiple jobs trying to pay for their education.â€Â
CSU executives̢۪ salary comparison
The following list shows the new salaries for several CSU presidents, and the percentage of the increase from last year.
̢ۢ CSU Bakersfield
President Horace Mitchell: $285,000. Increase of 10%.
̢ۢ CSU Fresno
President John D. Welty: $299,000. Increase of 13.3%.
̢ۢ CSU Pomona
President J. Michael Ortiz: $292,000. Increase of 18.1%.
̢ۢ CSU San Luis Obispo
President Warren J. Baker: $328,209. Increase of 10%.
̢ۢ CSU Stanislaus
President Hamid Shirvani: $270,000. Increase of 9.5%.
Jared Harper • Sep 28, 2009 at 1:11 am
Actually for us, the students he plays a role of “get the hell out of here” but for Corporate America and Charles Reed, he plays the role of “just keep bringing in the bucks on the private side, who cares how much tax money and lawsuits has to be paid on the public side.
Jared Harper • Sep 28, 2009 at 8:11 am
Actually for us, the students he plays a role of “get the hell out of here” but for Corporate America and Charles Reed, he plays the role of “just keep bringing in the bucks on the private side, who cares how much tax money and lawsuits has to be paid on the public side.
Student • Sep 27, 2009 at 7:27 pm
What important role does John Welty play? Oh, loss of lawsuit, increase in registration and tuition fee.
Student • Sep 28, 2009 at 2:27 am
What important role does John Welty play? Oh, loss of lawsuit, increase in registration and tuition fee.
Statham is a trophy • Sep 27, 2009 at 3:40 pm
In Northridge we realize that Statham and all other CSU student trustees are bought off. They are promised a succesful and enduring high paid salary…Statham wants to be the President of a university of course he is gonna vote to increase the salary of a position he will be appointed to someday.
Statham is a trophy • Sep 27, 2009 at 10:40 pm
In Northridge we realize that Statham and all other CSU student trustees are bought off. They are promised a succesful and enduring high paid salary…Statham wants to be the President of a university of course he is gonna vote to increase the salary of a position he will be appointed to someday.
Scott • Sep 26, 2009 at 7:52 pm
How embarrasing for us in the San Luis Obispo area. We sit here watching the economy crumble around us and then we learn that this event occured? I could not even fathom receiving that money knowing someone trying to get an education had to drop out of school because they just couldn’t afford it. wow! Talk about Irony.
Scott • Sep 27, 2009 at 2:52 am
How embarrasing for us in the San Luis Obispo area. We sit here watching the economy crumble around us and then we learn that this event occured? I could not even fathom receiving that money knowing someone trying to get an education had to drop out of school because they just couldn’t afford it. wow! Talk about Irony.
A.C. Slater • Sep 24, 2007 at 10:36 am
Disgraceful. These ivory tower administrators deserve no such raise. They make no positive impact on anything we do.
A.C. Slater • Sep 24, 2007 at 5:36 pm
Disgraceful. These ivory tower administrators deserve no such raise. They make no positive impact on anything we do.
gm • Sep 24, 2007 at 9:23 am
Silly me. When I heard talk of a crisis in the CSU system, I thought it was about skyrocketing student fees, the need for infrastructure expenditures or even to come up with a raise for staff (which have gone without one for years). But no, I was wrong. We are in desperate danger of not being able to find excellent people to work for over $250,000 a year (plus perks)! It is amazing that we can find anyone at such bargain prices. Based on the theory that we can’t compete for and retain quality people lagging 46% behind a sampling of representitive institutions, then we should immediately raise executive pay accordingly and terminate all current executives. Surely, as evidenced by their willingness to work for such paltry pay, they must be inferior to their peers around the country!
And aren’t the students fortunate to have a representitive like Russell Statham looking out for their interests! Bet you didn’t realize that paying executives more is a key component impacting the lives of students. Sure 10% fee hikes every year might put a crimp in your leisure spending, but executive compensation, now there is something that could really diminsh your educational experience!
Even if you don’t completely buy that point, you have to admit, $850,000 of taxpayer money isn’t really that big a deal and I’m sure that if you come up a little short on your fees next semester, the university will let you slide since it is just a drop in the overall budget.
gm • Sep 24, 2007 at 4:23 pm
Silly me. When I heard talk of a crisis in the CSU system, I thought it was about skyrocketing student fees, the need for infrastructure expenditures or even to come up with a raise for staff (which have gone without one for years). But no, I was wrong. We are in desperate danger of not being able to find excellent people to work for over $250,000 a year (plus perks)! It is amazing that we can find anyone at such bargain prices. Based on the theory that we can’t compete for and retain quality people lagging 46% behind a sampling of representitive institutions, then we should immediately raise executive pay accordingly and terminate all current executives. Surely, as evidenced by their willingness to work for such paltry pay, they must be inferior to their peers around the country!
And aren’t the students fortunate to have a representitive like Russell Statham looking out for their interests! Bet you didn’t realize that paying executives more is a key component impacting the lives of students. Sure 10% fee hikes every year might put a crimp in your leisure spending, but executive compensation, now there is something that could really diminsh your educational experience!
Even if you don’t completely buy that point, you have to admit, $850,000 of taxpayer money isn’t really that big a deal and I’m sure that if you come up a little short on your fees next semester, the university will let you slide since it is just a drop in the overall budget.
Good • Sep 24, 2007 at 8:52 am
Good story. Lots of interesting information!
I like this part, though:
“Statham said the CSU executives play a pivotal role in impacting college life for students, and thus it was important to retain them through just compensation.”
“impacting college life for students.” He didn’t say it was a positive impact!
Good • Sep 24, 2007 at 3:52 pm
Good story. Lots of interesting information!
I like this part, though:
“Statham said the CSU executives play a pivotal role in impacting college life for students, and thus it was important to retain them through just compensation.”
“impacting college life for students.” He didn’t say it was a positive impact!