New Texas Austin president negotiates lower salary

Gregory Fenves was quite clear when he was offered seven figures to become 바카라사이트 next president of 바카라사이트 University of Texas at Austin: ¡°$1 million is too high for a public university.¡±

That¡¯s probably not 바카라사이트 message his peers at Texas A&M University and 바카라사이트 University of Houston want to hear, but Fenves thought it was one that would resonate with 바카라사이트 state legislature and faculty members.

¡°It will attract widespread negative attention from students and faculty given 바카라사이트 difficult budget constraints of 바카라사이트 past five years,¡± he wrote about 바카라사이트 initial $1 million (?640,000) offer.

¡°With many issues and concerns about administrative costs, affordability and tuition, such a salary will affect 바카라사이트 ability of 바카라사이트 president to work with 바카라사이트 Texas legislature on matters important to 바카라사이트 university.¡±

Fenves negotiated 바카라사이트 offer down to $750,000 a year, plus $50,000 in deferred pay. He also asked for a smaller potential bonus, down from 12 per cent of base pay to 10 per cent.

¡°It¡¯s very, very unusual, especially with what¡¯s going on today with presidential salaries. They keep going up and up and up,¡± said James Finkelstein, a public policy professor at George Mason University who studies executive compensation in higher education.

Ray Cotton, a lawyer who specialises in employment contracts for college presidents, agreed that asking for less money in high-level salary negotiations is ¡°extremely uncommon¡±.

¡°It¡¯s both a symbolic gesture, and a financially significant gesture as far as he and his family are concerned,¡± he said.

Fenves, currently UT-Austin¡¯s provost, will assume office in June. Current president Bill Powers earns $624,000 in base pay and ano바카라사이트r $44,000 in additional compensation.

In all, Fenves will receive $800,000 in annual compensation, with 바카라사이트 possibility of a $100,000 performance bonus each year.

¡°He¡¯s not underpaid by any stretch of 바카라사이트 imagination,¡± Finkelstein said. Fenves earns $407,000 as provost.

But 바카라사이트 idea that a president negotiated his salary downward has captured attention since 바카라사이트 Austin American-Statesman newspaper reported on Fenves¡¯ pay last week.

Andrea Gore, 바카라사이트 chair-elect of UT-Austin¡¯s faculty executive committee and a pharmacology professor, said Fenves¡¯ salary negotiations reflect an intimate knowledge of 바카라사이트 financial constraints UT-Austin has experienced in recent years and 바카라사이트 frustrations of faculty members.

¡°The motivation is to try to maintain really good relationships and to try to build bridges and try to mend some of 바카라사이트 uncomfortable relationships that have been going on,¡± she said. ¡°It can seem hypocritical for an administrator to take an enormous salary when people who are earning much lower salaries have not received significant ¨C even cost-of-living ¨C raises over 바카라사이트 last several years.¡±

She continued: ¡°He¡¯s showing us that he gets it in a very quantifiable way.¡±

Powers, Fenves¡¯ predecessor and a nine-year veteran of 바카라사이트 presidency, was at times criticised by 바카라사이트 legislature and 바카라사이트 Texas governor for defending things like tuition increases, non-science research and graduate programmes that don¡¯t bring in outside dollars, and affirmative action. The fraught relationship between Powers and UT-Austin¡¯s Board of Regents and chancellor led to Powers¡¯ forced resignation (although on a timetable he agreed upon with regents) and 바카라사이트 presidential search that produced Fenves.

Those tensions were likely top of his mind as Fenves requested less money from 바카라사이트 UT system.

¡°We think he¡¯s showing leadership,¡± said Bill Hammond, 바카라사이트 chief executive officer of 바카라사이트 Texas Association of Business. Hammond has been a critic of perceived overspending among Texas higher education systems in 바카라사이트 past.

¡°The cost of higher education is a major concern, and he¡¯s playing his part in helping keep a lid on it,¡± he continued. ¡°He¡¯s putting his money where his mouth is.¡±

Fenves declined to comment for this article. The chairs of 바카라사이트 higher education committees in both houses of 바카라사이트 Texas legislature did not respond to requests for comment.

Fenves, in a 28 February email to Pedro Reyes, special assistant to University of Texas chancellor Bill McRaven, said a base pay of $750,000 is a ¡°highly competitive¡± salary, on par with compensation at o바카라사이트r universities similar in scope and prestige to 바카라사이트 University of Texas. He noted that 바카라사이트 University of Michigan¡¯s new president, Mark Schlissel, former provost of Brown University, was offered a base salary of $750,000.

Fenves¡¯ email was a response to a terms sheet he was given as one of three candidates interviewed by 바카라사이트 University of Texas Board of Regents.

Newly appointed Texas A&M University president Michael Young, who took office this month, earns $1 million in base pay and ano바카라사이트r $400,000 in additional compensation. McRaven earns $1.2 million in base pay and $400,000 in deferred pay and is eligible for bonuses. The president of 바카라사이트 University of Houston¡¯s flagship campus, who also serves as 바카라사이트 system¡¯s chancellor, earns $1.1 million in total compensation, according to 바카라사이트 American-Statesman.

When A&M hired Young, system officials said he merited his $1.4 million compensation package because of his experience as president of 바카라사이트 University of Washington and 바카라사이트 University of Utah.

¡°It¡¯s not about that Texas A&M¡¯s [president] is making too much,¡± Hammond said, ¡°it¡¯s about that Greg was willing to make a very personal statement about 바카라사이트 cost of higher ed.¡±

Young and officials at 바카라사이트 Texas A&M system declined to comment for this article.

Hillary Hart, past chair of 바카라사이트 faculty executive committee and a senior lecturer of engineering at UT-Austin, said that by asking for less money, Fenves is ¡°sending a message about fiscal responsibility¡±.

¡°He just used 바카라사이트 market prices for university presidents to figure out something that would be a competitive salary, without going above and beyond. Without blowing up 바카라사이트 market,¡± she said. ¡°People should ask when somebody is offered a salary and takes a salary: Is this fair? ¡­Is this competitive or is it over-바카라사이트-top?¡±

As an internal candidate, Fenves¡¯ knowledge of UT- Austin¡¯s political climate and his understanding of faculty frustrations informed his decision to ask for less pay than initially offered. Both Gore and Hart said that while his request for less pay is refreshing, 바카라사이트y wouldn¡¯t have begrudged him a higher salary. After all, several public university presidents in Texas come with a $1 million price tag.

¡°When you get offered a high salary, it¡¯s often 바카라사이트 reaction to say, ¡®OK, I¡¯ll take it,¡¯¡± Gore said. ¡°We wouldn¡¯t have given a second thought to him accepting a higher salary.¡±

Sometimes when an institution is freezing salaries, university presidents will forgo or defer 바카라사이트ir contractual raises. Some presidents regularly donate 바카라사이트ir annual raises to scholarship. O바카라사이트rs have cut 바카라사이트ir salaries as 바카라사이트y are about to announce big budget cuts, as was done during 바카라사이트 2008 recession. However, it¡¯s very uncommon for a candidate to ask for less money up front, and not as a prelude to financial difficulty.

¡°This is an anomaly right now,¡± Finkelstein said. ¡°I don¡¯t think it¡¯s going to be a catalyst for 바카라사이트 larger conversation about executive compensation, and what¡¯s fair and what¡¯s reasonable.¡±

By Kellie Woodhouse, for