Trustees Adopt Presidential Pay-for-Performance

In an effort to improve accountability and better the University’s ability to attract skilled administrators, SUNY’s Board of Trustees has adopted a new salary plan for its campus presidents. The Board of Trustees was in full agreement that salary ranges should be implemented, that current salary levels are non-competitive, and that Presidents should be rewarded for performance.

Upon implementation of the plan, presidents and system administration senior staff will receive a 3.5 percent pay increase, the same percentage increase recently provided faculty and staff as a result of this year’s agreement with United University Professions. SUNY presidents have not received a pay increase since October 1994. No new state money will be required to support the increase.

In recommending the salary plan to the Board, Chancellor John W. Ryan said, “This major restructuring will enhance accountability by recognizing performance consistent with presidential reviews and evaluations. We will also achieve greater comparability with the salaries of peer institutions. Current State University salaries for our Universities at Albany and Binghamton, as well as our University and Specialized Colleges, fall below 80 percent of our peers.”

Trustees Chairman Thomas F. Egan stated, “This new salary plan recognizes the increased academic, administrative and financial responsibilities of presidents . . . [It] reflects the significant differences in the missions and complexities of the University’s colleges and universities and will provide a means to recruit and retain the most qualified and distinguished leaders in higher education.”

The floor of the new salary plan is based on the current plan plus the 3.5 percent increase. The ceiling of the salary range is the 75th percentile of peer institutions, based on the 1996-97 College and University Personnel Association Survey.

During 1998, the Chancellor will conduct an initial review of presidential and senior staff salaries, focusing on performance, mission and market, with an outline of review procedures and criteria provided to the Executive Compensation Committee of the Board of Trustees. The Chancellor will confer with the local college council chair as part of the presidential review process. No scaling of pay will be permitted without performance reviews.

For vacant positions, the Chancellor, following discussion with the local college council chair, will authorize a salary within the appropriate salary range to help in recruiting campus Presidents. With the approval of the Chancellor, campus foundations will be authorized to provide supplementary financial support to Presidents, for example to cover relocation costs.

Under the revised plan, no salary in the University system will exceed that of the Chancellor. No employee at a campus will receive a salary greater than the campus President. However, exceptions will be made to reflect medical school salaries or other special situations.