National Overview of College Presidential Compensation
According to the American Association of University Professors’ (AAUP) 2023-24 Annual Report on the Economic Status of the Profession, college and university president salaries vary significantly by institution type. Median salaries range from approximately $259,000 at public associate’s institutions without ranking systems to over $912,000 at private doctoral universities.www.aaup.org
The national average salary for university presidents stands at approximately $277,747 per year, with most earning between $238,403 and $336,873, according to recent compensation data. However, these figures only represent base salaries and don’t include additional compensation in the form of bonuses, deferred compensation, housing allowances, and other benefits that can substantially increase total pay packages.www.salary.com
A significant trend revealed in the AAUP report is that “growth in salaries for college and university presidents has outpaced the growth in full-time faculty salaries for years.” This growing disparity has sparked debates about priorities in higher education spending, particularly as many institutions face budget constraints and rising tuition costs.www.aaup.org
Private University Presidential Compensation
Private university presidents typically earn significantly more than their public counterparts, with some earning multimillion-dollar compensation packages. According to a 2024 Chronicle of Higher Education analysis of fiscal year 2021 data (the most recent comprehensive dataset available), the highest-paid private university presidents include:
- Amy Gutmann, University of Pennsylvania: $22,866,127 (including $1,564,547 base pay, plus deferred compensation)
- Lee C. Bollinger, Columbia University: $3,865,304 (including $1,625,998 base pay)
- Andrew Hamilton, New York University: $3,554,120 (including $3,341,125 base pay)
- Carol L. Folt, University of Southern California: $3,479,049 (including $1,419,861 base pay)
- Robert J. Zimmer, University of Chicago: $3,427,953 (including $1,427,443 base pay)www.ivycoach.com
These figures reflect total compensation, which often includes substantial deferred compensation plans that vest after a certain period. For example, Amy Gutmann’s extraordinarily high compensation included over $20 million in deferred compensation that accumulated during her long tenure at UPenn.www.foxbusiness.com
It’s important to note that these compensation packages often include performance bonuses, retirement contributions, housing benefits, and other perks not reflected in base salaries. When compared to corporate CEOs, Gutmann’s compensation in 2021 would have made her the 68th highest-paid CEO of an S&P 500 company in 2023.www.foxbusiness.com
Public University Presidential Compensation by State
Public university presidential salaries are generally lower than those at private institutions but still represent substantial compensation packages. Below is a state-by-state overview of presidential compensation at major public universities:
Highest-Paying States for Public University Presidents
- California: $306,355 average, with flagship campus presidents earning significantly more
- District of Columbia: $307,521 average
- Washington: $301,161 average
- New Jersey: $301,050 average
- Alaska: $300,661 averagewww.salary.com
Middle-Range States for Public University Presidents
- Massachusetts: $302,272 average
- Connecticut: $296,828 average
- New York: $295,273 average
- Rhode Island: $287,968 average
- Maryland: $286,385 averagewww.salary.com
Lower-Paying States for Public University Presidents
- South Dakota: $252,416 average
- Arkansas: $250,917 average
- West Virginia: $250,111 average
- Mississippi: $247,695 average
- Alabama: $255,166 averagewww.salary.com
These averages reflect base salaries and may not include additional compensation elements that can significantly increase total pay packages. Public university presidents often receive housing allowances, car allowances, performance bonuses, and retirement contributions that can add hundreds of thousands of dollars to their total compensation.
Regional Patterns in Presidential Compensation
Northeast
The Northeast region generally offers among the highest presidential compensation nationally:
- Strong emphasis on academic credentials
- Higher cost of living reflected in compensation packages
- Significant private university presence influencing public university pay
- Higher state funding for higher education in some states like Connecticut
Massachusetts, New Jersey, New York, and Connecticut all rank among the top-paying states for university presidents, reflecting the region’s historically high investment in higher education and higher cost of living.www.salary.com
West Coast
California, Washington, and Oregon offer competitive presidential compensation:
- California leads with the highest average salaries for public university presidents
- High cost of living significantly impacts compensation packages
- Strong public university systems like the University of California
- Technology industry influences and high property values contribute to higher compensation packages
The University of California system presidents and chancellors earn particularly competitive salaries, often exceeding $400,000 in base pay with additional benefits.eighteenthelephant.com
Midwest
The Midwest shows moderate presidential compensation with notable variations:
- Illinois and Minnesota offer more competitive packages
- Rural states like South Dakota tend to offer lower compensation
- State funding challenges in recent years have impacted compensation growth
- Strong relationship between institution size and presidential compensation
At the University of Minnesota, for example, the president’s contract approved in 2024 exceeded $1 million in total compensation, placing the position “in the top quarter for presidents of Big Ten universities.”publicrecordmedia.org
South
The South presents significant variation in presidential compensation:
- Texas stands out with some of the nation’s highest presidential salaries
- Florida, Georgia, and North Carolina offer moderate packages
- Mississippi, Alabama, and Arkansas typically offer lower compensation
- Strong correlation between flagship university status and presidential compensation
Many southern states have seen recent increases in presidential compensation as they compete nationally for leadership talent, despite historically lower faculty salaries in these regions.aaupuc.org
Factors Influencing Presidential Compensation
Institution Type and Size
The type and size of institution significantly impact presidential compensation:
- Research universities typically offer the highest compensation (median over $912,000 at private doctoral institutions)
- Comprehensive universities offer mid-range compensation
- Community colleges typically offer the lowest presidential compensation
- Student enrollment correlates strongly with compensation levels
According to compensation experts, each additional 1,000 students correlates with approximately $13,000 in additional presidential compensation at public universities, reflecting the increased complexity of managing larger institutions.www.cbo.gov
Institutional Resources and Endowment
Financial resources play a crucial role in determining presidential compensation:
- Universities with larger endowments typically offer higher presidential compensation
- Private institutions with substantial endowments can offer more competitive packages
- Public institutions in states with stronger higher education funding tend to offer better compensation
- Budget constraints at smaller institutions or those in financially challenged states limit presidential pay
For example, private institutions with endowments exceeding $1 billion often offer presidential compensation packages well over $1 million annually.scholarships.jcu.edu
Geographic Location and Cost of Living
Regional economic factors significantly impact presidential compensation:
- High cost-of-living areas (Northeast, West Coast) typically offer higher nominal compensation
- Rural areas and regions with lower costs of living generally offer lower nominal compensation
- Metropolitan universities typically offer higher compensation than rural institutions of similar size
- State economic conditions influence both public and private institution pay scales
For example, university presidents in California earn approximately 15-20% more than those in similar institutions in the South, largely reflecting cost of living differences.www.salary.com
Experience and Academic Background
Presidential backgrounds influence compensation:
- Presidents with previous executive experience typically command higher salaries
- Academic credentials (particularly doctoral degrees) correlate with higher compensation
- STEM and business backgrounds often command premium compensation
- Prior presidential experience typically results in higher starting compensation
Presidents with backgrounds in high-demand fields like medicine, law, business, or engineering often receive premium compensation packages reflecting their market value in those sectors.scholarships.jcu.edu
The Structure of Presidential Compensation Packages
Base Salary Components
Base salaries represent only one component of presidential compensation:
- Public universities: Base salaries typically range from $250,000 to $800,000
- Private universities: Base salaries typically range from $300,000 to $2 million
- Community colleges: Base salaries typically range from $180,000 to $500,000
- For-profit institutions: Base salaries often tied to institutional performance metrics
However, base salary often represents less than half of a president’s total compensation package, particularly at larger institutions.scholarships.jcu.edu
Deferred Compensation and Retention Incentives
Deferred compensation has become an increasingly significant component of presidential pay:
- Structured to encourage long-term commitment to the institution
- Often vests only after reaching tenure milestones (e.g., 5 or 10 years)
- Can exceed base salary when fully vested
- Often results in exceptionally high compensation in a president’s final year
Amy Gutmann’s record-breaking $22.9 million compensation at the University of Pennsylvania in 2021 included deferred compensation that had accumulated over her 18-year tenure, demonstrating how these arrangements can lead to headline-generating payouts.www.foxbusiness.com
Performance Bonuses and Incentives
Many institutions tie portions of presidential compensation to performance:
- Enrollment targets
- Fundraising goals
- Student success metrics
- Financial management objectives
- Strategic plan implementation
Performance-based compensation is becoming increasingly common, with some presidents eligible for bonuses of 15-30% of their base salary for meeting institutional goals.www.aaup.org
Additional Benefits and Perquisites
Beyond salary and bonuses, presidents typically receive substantial benefits:
- Housing: Either university-owned residences or housing allowances ($50,000-$100,000 annually)
- Transportation: Car allowances or university-provided vehicles ($12,000-$25,000 annually)
- Retirement contributions: Often more generous than those for faculty (15-25% of base salary)
- Insurance packages: Comprehensive health, life, and disability coverage
- Club memberships: Country club, social club, or professional organization dues
- Travel allowances: For personal and professional travel
- Spouse/partner compensation: Formal roles or allowances for presidential partners
These benefits can add $100,000-$300,000 in value to a president’s compensation package.eighteenthelephant.com
Trends and Controversies in Presidential Compensation
Growing Pay Gap with Faculty
One of the most significant controversies surrounding presidential compensation is the widening gap between executive and faculty pay:
- Presidential compensation has increased at a faster rate than faculty salaries over the past decade
- The average ratio of president-to-faculty salary has increased from approximately 3:1 in the 1980s to over 5:1 today at many institutions
- At some institutions, presidents earn 10-15 times more than the average assistant professor
- This gap has accelerated even as many institutions face budget constraints and rely more on adjunct faculty
The AAUP has consistently highlighted this growing disparity, noting that it mirrors broader societal trends in executive compensation.www.aaup.org
Administrative Growth and Budget Priorities
Critics question not only presidential salaries but also the growth of administrative positions:
- “Administrative bloat” concerns have gained traction as non-faculty positions grow
- Some institutions now have more administrators than full-time faculty
- High-level administrative positions (VPs, associate provosts, etc.) often command salaries exceeding $200,000
- Resources directed to administration rather than instruction raise questions about institutional priorities
At the University of Minnesota, for example, approximately 2,200 employees earn more than the state’s governor ($127,629), with many of these being administrative positions rather than faculty.publicrecordmedia.org
Transparency and Public Scrutiny
Presidential compensation faces increasing scrutiny, particularly at public institutions:
- Public records laws require disclosure of compensation at state institutions
- Media coverage of presidential salaries has intensified, especially during tuition increases or budget cuts
- Governing boards face pressure to justify high compensation packages
- Some institutions use private foundations to supplement presidential compensation, raising transparency concerns
This scrutiny has led some institutions to structure compensation in ways that minimize public reporting requirements, such as using affiliated foundations to provide supplemental compensation.publicrecordmedia.org
Market Forces and Competition
Defenders of current compensation levels point to market forces:
- The pool of qualified candidates for presidential positions is relatively small
- Competition with private sector opportunities requires competitive compensation
- International competition for leadership talent has intensified
- The complexity and challenges of presidential roles have increased substantially
These market-based arguments often cite the need to attract leadership talent capable of navigating increasingly complex financial, political, and educational challenges.www.cbo.gov
Conclusion: The Future of Presidential Compensation
Presidential compensation in higher education reflects broader trends in executive pay across sectors:
- Continued growth despite public scrutiny and budget challenges
- Greater emphasis on performance-based components tying compensation to institutional goals
- Increasing reliance on deferred compensation to promote retention
- Widening gaps between executive and faculty compensation
- Growing regional disparities reflecting economic and political differences
The debate over appropriate compensation levels for college presidents involves fundamental questions about institutional values, market forces, and educational priorities. As higher education faces enrollment challenges, financial pressures, and public skepticism about costs, presidential compensation will likely remain a contentious issue reflecting broader societal debates about executive pay and organizational priorities.
For prospective and current college presidents, understanding these state-by-state and institutional variations is essential for career planning and negotiation. For governing boards, balancing competitive compensation with institutional needs and public perception remains a complex challenge with no simple solutions.
As we continue through the 2020s, the landscape of presidential compensation will likely evolve in response to economic conditions, public scrutiny, and changing expectations for institutional leadership in an increasingly complex educational environment.
