[Marxism] Student Debt Grows Faster at Universities With Highest-Paid Leaders, Study Finds
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Sun May 18 18:15:39 MDT 2014
NY Times, May 18 2014
Student Debt Grows Faster at Universities With Highest-Paid Leaders,
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
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
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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