CSU executive salary increases to be proposed
Chancellor Reed to propose executive salary increases to CSU Board of Trustees
Ben Roffee
Issue date: 9/18/07 Section: News
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In an effort to close staff salary lag in the Cal State University system, the Board of Trustees will meet today, Sept. 18, to hear a proposal from Chancellor Reed that would increase executive salaries by 11% for the 2007-2008 academic year.
Past discussion of raises came in response to annual studies conducted by the California Postsecondary Education Commission (CPEC). According to Paul Browning, a representative from the Chancellor's Office, "CPEC doesn't do the executive studies anymore." As a result, Chancellor Reed plans to pitch the proposed compensation increase on the basis of data from a private firm that the Chancellor's office commissioned to study salary comparisons. However, issues with the reliability and credibility of his proposal may provide a dilemma for the Board of Trustees.
Traditionally, CPEC conducted studies on executive and faculty salaries with the support of the CSU, UC, and various government agencies. While CPEC continues to conduct faculty salary studies, it recently halted its studies on executive salaries in response to self-evaluations that suggest the methodology in their studies is outdated and incomplete. In a report released in March 2007, CPEC concluded that executive salary studies were substantially incomplete because they could not "obtain perquisite and benefit information from the [CSU and UC] systems."
Though CPEC was in need of further information from the CSU and UC systems, Chancellor Reed instead turned to a private research firm. When contacted, the Chancellor's Office declined to comment on the decision. In the official proposal the Chancellor states that his office commissioned Mercer Human Resource Consulting, "a consulting group that has conducted CSU presidential compensation surveys at the request of CPEC since 1995" to conduct this study based on the CPEC criteria. According to the study, CSU executive compensation lagged by a remarkable 46%.
A representative from CPEC explained that CPEC has no affiliation with Mercer and that CPEC could not corroborate nor concur with the findings of their salary study. Furthermore, he emphasized that the methodology of these salary studies is bursting with problems.
Past discussion of raises came in response to annual studies conducted by the California Postsecondary Education Commission (CPEC). According to Paul Browning, a representative from the Chancellor's Office, "CPEC doesn't do the executive studies anymore." As a result, Chancellor Reed plans to pitch the proposed compensation increase on the basis of data from a private firm that the Chancellor's office commissioned to study salary comparisons. However, issues with the reliability and credibility of his proposal may provide a dilemma for the Board of Trustees.
Traditionally, CPEC conducted studies on executive and faculty salaries with the support of the CSU, UC, and various government agencies. While CPEC continues to conduct faculty salary studies, it recently halted its studies on executive salaries in response to self-evaluations that suggest the methodology in their studies is outdated and incomplete. In a report released in March 2007, CPEC concluded that executive salary studies were substantially incomplete because they could not "obtain perquisite and benefit information from the [CSU and UC] systems."
Though CPEC was in need of further information from the CSU and UC systems, Chancellor Reed instead turned to a private research firm. When contacted, the Chancellor's Office declined to comment on the decision. In the official proposal the Chancellor states that his office commissioned Mercer Human Resource Consulting, "a consulting group that has conducted CSU presidential compensation surveys at the request of CPEC since 1995" to conduct this study based on the CPEC criteria. According to the study, CSU executive compensation lagged by a remarkable 46%.
A representative from CPEC explained that CPEC has no affiliation with Mercer and that CPEC could not corroborate nor concur with the findings of their salary study. Furthermore, he emphasized that the methodology of these salary studies is bursting with problems.
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