[Marxism] Student Debt Grows Faster at Universities With Highest-Paid Leaders, Study Finds

Louis Proyect lnp3 at panix.com
Sun May 18 18:15:39 MDT 2014


NY Times, May 18 2014
Student Debt Grows Faster at Universities With Highest-Paid Leaders, 
Study Finds
By TAMAR LEWIN

At the 25 public universities with the highest-paid presidents, both 
student debt and the use of part-time adjunct faculty grew far faster 
than at the average state university from 2005 to 2012, according to a 
new study (http://www.ips-dc.org/reports/one_percent_universities) by 
the Institute for Policy Studies, a left-leaning Washington research group.

The study, “The One Percent at State U: How University Presidents Profit 
from Rising Student Debt and Low-Wage Faculty Labor,” examined the 
relationship between executive pay, student debt and low-wage faculty 
labor at the 25 top-paying public universities.

The co-authors, Andrew Erwin and Marjorie Wood, found that 
administrative expenditures at the highest-paying universities outpaced 
spending on scholarships by more than two to one. And while adjunct 
faculty members became more numerous at the 25 universities, the share 
of permanent faculty declined drastically.

“The high executive pay obviously isn’t the direct cause of higher 
student debt, or cuts in labor spending,” Ms. Wood said. “But if you 
think about it in terms of the allocation of resources, it does seem to 
be the tip of a very large iceberg, with universities that have 
top-heavy executive spending also having more adjuncts, more tuition 
increases and more administrative spending.”

Since the 2008 financial crisis, the report found, the leaders of the 
highest-paying universities fared well, largely at the expense of 
students and faculty.

“Like executives in the corporate and banking sectors, public university 
presidents weathered the immediate aftermath of the fall 2008 financial 
crisis with minimal or no reductions in total compensation,” the report 
said.

While the average executive compensation at public research universities 
increased 14 percent from 2009 to 2012, to an average of $544,554, 
compensation for the presidents of the highest-paying universities 
increased by a third, to $974,006, during that period.

The Chronicle of Higher Education’s annual survey of public university 
presidents’ compensation, also released Sunday, found that nine chief 
executives earned more than $1 million in total compensation in 2012-13, 
up from four the previous year, and three in 2010-11.

The median total compensation of the 256 presidents in the survey was 
$478,896, a 5 percent increase over the previous year.

But, The Chronicle found, chief executives were hardly alone among the 
highest-paid public university officials. Athletic coaches made up 70 
percent of the public university employees earning more than $1 million 
last year, and medical doctors another 20 percent.

As in several past years, the highest-compensated president, at 
$6,057,615 in this period, was E. Gordon Gee, who resigned from Ohio 
State last summer amid trustee complaints about frequent gaffes. He has 
since become the president of West Virginia University.

In the study by the Institute for Policy Studies, Ohio State was No. 1 
on the list of what it called the most unequal public universities. The 
report found that from fiscal 2010 to fiscal 2012, Ohio State paid Mr. 
Gee a total of $5.9 million. During the same period, it said, the 
university hired 670 new administrators, 498 contingent and part-time 
faculty — and 45 permanent faculty members. Student debt at Ohio State 
grew 23 percent faster than the national average during that time, the 
report found.

Others on the “most unequal” list were Pennsylvania State University, 
the University of Minnesota, the University of Michigan and the 
University of Washington.



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