“In line with the current economy and its seriousness, some university presidents are giving back financially in order to help. According to The New York Times, presidents from Washington University, the University of Pennsylvania, the University of Washington and Washington State University are offering to take either pay cuts or return some money to the establishment in the form of scholarships, grants or endowments.”
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In line with the current economy and its seriousness, some university presidents are giving back financially in order to help.
According to The New York Times, presidents from Washington University, the University of Pennsylvania, the University of Washington and Washington State University are offering to take either pay cuts or return some money to the establishment in the form of scholarships, grants or endowments.
I have been doing that virtually every year I have been here, Proenza said. I give the university $10,000 every year and at least twice, if not three times I have donated the amount equal to my raise.
He said that the money goes towards the Purnell-Fort scholarship fund that is designed to benefit minority students.
Most college presidents depending on how long they are at an institution wind up giving considerably of their own resources back to the institution, Proenza said.
He also said that the reason he gives money to the university is because of pride.
The university provides a great source of pride, Proenza said. There have been times when it’s appropriate as a symbolic gesture for me to do that.
It was recently released that President Luis Proenza ranked third nationally in retirement pay, earning $94,405 for 2006-2007.
On Dec. 31, 2007, Proenza received a retention bonus of $54,185 as his contract with the University of Akron ended. On Jan. 1, 2008, he received a 5 percent increase bringing his base pay to $354,495.
Ohio Senator Tim Grendell said that he plans to monitor the salaries of public universities.
They are not on a Wall St. pay scale, Grendell said. He pointed to those presidents that are giving back to the university scholarship funds, saying that if they are evening their salaries out, the increase in pay is acceptable.
He also brought up the idea that people need to look at the salary as a whole and why the person in the position is qualified, saying that officials often times receive benefits in other areas such as housing and expense accounts.
I can’t understand it, Grendell said.
All of this talk comes in light of the recent economy problems. While presidents are declining their raises and giving back to universities, the real issue lies in what will happen to faculty and staff salaries.
According to Proenza they will not see much of a change.
I think the university is going to be somewhat insulated from the economic issues, Proenza said. He explained that certain areas may be touched by the economy, such as those that invest in the stock market.
The university as a whole depends very little on the stock market for its operations, Proenza said.
He pointed to the fact that there may be a few students who’s parents may derive their income from the stock market. However, he said he did not foresee any problems in the immediate future that would threaten any obligations made to faculty and staff.
We should be able to honor those quite comfortably, Proenza said.
Proenza stated that he would once again be donating to the University of Akrons scholarship fund for the amount of at least $10,000.
The University of Akron also provides Proenza with a house in West Akron, car and country club memberships. None of these things were included in his compensation.
Jeffrey J. Selingo, editor of the Chronicle of Higher Education, told an Akron Beacon Journal reporter the nationwide could cause a backlash.
Students, parents, trustees and lawmakers are likely to take a closer look at whether presidents are worth the cost, given how worried families are about affording tuition as everyone is feeling a bit poorer,” he said.
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