College president salaries increase 18 percent
By CCTIMES, Published October 1, 2007

From 2004 to 2006, the average salary for community college presidents increased by 18.6 percent, or 11 percent when adjusted for inflation, according to a new brief from the American Association of Community Colleges (AACC).

However, the average salary increase reported between 2005 and 2006 was about 6 percent, the brief noted.

Compared with data from a previous survey in 2004, the average base salary for CEOs serving 20 to 24 years had decreased by 6 percent when adjusted for inflation. But salaries for new presidents—CEOs serving five years or less—increased by more than 16 percent over the same period.

AACC said a possible explanation for the drop in salaries among long-time veteran CEOs may be that the survey participants are serving multi-campus or single institutions in rural areas, and they were typically white males. (The survey showed that average salaries for white CEOs is lower than salaries for Latino or black CEOs.)

“Further exploration is needed to decipher these patterns,” the brief said.

Salaries highly correspond with the type of college, the report noted. CEOs of district offices within multi-college districts had the highest salaries, and presidents of separately accredited two-year campuses of universities had the lowest, the brief noted.

The average base salary among survey participants was $153,684. Depending on the type of college, average base salaries of CEOs ranged from $123,889 to $213,879.

Base salaries and total cash compensation (TCC) were not statistically different by race or ethnicity, according to the brief. However, the data suggests that Native American presidents received the lowest compensation, and Latino CEOs earned slightly more than CEOs of other races or ethnicities.

AACC noted that one possible explanation for the lower salaries for Native American CEOs is that they tend to work for tribal colleges in rural areas, while Latino presidents tend to work at urban colleges.

Women earned slightly less than men in terms of base salary and TCC. The base salary for women ($150,531) was 97 percent of that for men ($154,782). TCC for women ($160,137) was 97 percent of that for men ($164,759).

As in previous CEO surveys, base salaries and TCC also vary across regions. Similar to the 2004 data, presidents in the Far West and in the Mideast reported the highest base salaries. Those in the Rocky Mountain area reported the lowest, as in previous surveys. (A possible reason is because of the relatively small size of colleges in that region, AACC explained.)

Slightly less than half of CEOs participating in the survey said that their colleges had no restrictions on earnings beyond those provided by the college. About 20 percent of presidents reported receiving compensation for outside work, such as consulting or board services. For them, the average amount of outside earnings was $8,784. That’s a 33 percent increase compared to the 2004 survey data.

The brief noted that biggest increase came in consulting. Surveyed presidents indicated earning an average $7.407 from providing such services.  

Most of the CEOs responding to the survey also reported receiving some form of perquisite, the brief added. The most common perks were a cell phone or pager, housing or housing allowance and car or car allowance. About half of respondents who received a car or house noted that it was written into their contracts.

Other frequently offered perquisites included an allowance for entertaining and service club dues.

AACC has conducted CEO compensation surveys for its members since 1990.

AACC also released a brief profiling community college presidents, from their average age and tenure, to retirement plans and activities to cultivate future leaders. The accompanying survey asked presidents about their duties at the college and about their involvement with local businesses and the community. (The data was previously reported in the April 27, 2007, edition of the Times.)

“Compensation and Benefits of Community College CEOs: 2006” and “The Community College Presidency: 2006” are available at www.aacc.nche.edu.