UNIVERSITY PARK, Pa. — Penn State President Neeli Bendapudi declined any increase in her annual base salary following a positive review of her performance by the University Board of Trustees, in which she was praised for establishing challenging goals and executing difficult decisions to achieve them – while overseeing one of the most complex academic research enterprises in the nation.
The board augmented both Bendapudi's deferred compensation to better align with market data related to the scope of responsibilities, and her completion bonus starting in 2027. Her base salary remains the same.
“In evaluating President Bendapudi’s performance, it was clear that her dedication to making Penn State a model university for student success has been outstanding, as demonstrated by her many initiatives and tireless efforts toward this goal,” said Board Chair Matthew Schuyler. “In this demanding era for all of higher education, which requires presidents to set and execute transformational goals, Neeli’s decisive leadership — marked by foresight and willingness to make tough, but necessary, decisions — ensures Penn State's continued prominence as a world-class institution.”
The full board voted Friday (Feb. 16) on the unanimous recommendations of the Subcommittee on Compensation. Key changes include a move to a rolling or evergreen contract, meaning there is an opportunity for a continual five-year contract to be in place. This strategic decision is an indicator of the board’s long-term commitment to and support of Bendapudi’s leadership at Penn State, according to Schuyler.
Mary Lee Schneider, chair of the board’s Subcommittee on Compensation, explained that the total compensation package for the president is commensurate with the scope and responsibilities when compared to the presidential peer group that was reviewed. For example:
- Penn State stands out among universities with one of the largest student enrollments;
- Penn State is one of the most complex higher education institutions in the world, with 20 undergraduate campuses across the commonwealth, in addition to the Great Valley graduate campus, World Campus, Penn College and Dickinson Law;
- Penn State also has an academic health enterprise with a multi-hospital health system serving patients and communities across 29 counties of Pennsylvania; and
- The University is home to one of the 30 largest academic research enterprises in the nation with expenditures in excess of $1 billion.
“Neeli is a thoughtful leader with a deep understanding of Penn State’s values and mission, and under her leadership the university continues to demonstrate our unwavering commitment to excellence, innovation and inclusivity. She has spearheaded numerous initiatives that will significantly enhance Penn State’s reputation and impact,” said Schneider. “In recognition of President Bendapudi’s outstanding and decisive leadership, we chose to enhance her deferred compensation, increase her completion bonus, and establish an evergreen contract. These deliberate steps bring some assurance that we can retain her extraordinary talent for this presidential position that is so complex and challenging.”
The presidential performance assessment is one of the central responsibilities annually undertaken by Penn State’s Board of Trustees. The board’s Subcommittee on Compensation makes recommendations and under its guidelines, a vote of the full board is required for approval of changes in presidential compensation.
This year’s presidential performance review of Bendapudi gained a remarkably high response rate among the Board of Trustees (97%). Bendapudi received strong support for her leadership abilities and was praised for her progress in transforming the internal operations of Penn State. Also noted among her accomplishments are her capabilities in building relationships across the Commonwealth; communicating a resonating vision and message around Penn State’s land-grant mission and its contributions; and addressing the budget deficit.
The Board of Trustees is committed to maintaining the president's compensation at a competitive level within Penn State's peer group, which includes Big Ten universities and select private institutions that are closely aligned in size, operating budget and complexity, according to Schuyler. The board’s Subcommittee on Compensation references this competitive analysis, as well as a Presidential Performance Evaluation summary, to determine appropriate and earned salary increments. Both documents were compiled by Segal, an external consulting firm that provides expertise in executive compensation. The Presidential Performance Evaluation summary also is shared with the full board for review, input and discussion.
In his comments during Friday’s full board meeting, Chair Schuyler shared, “it is clearly the hope of this board that President Bendapudi is our leader for many years to come. We are grateful for her strategic, courageous and compassionate leadership.”
According to Schuyler, this week, President Bendapudi and her husband, Venkat, showed their ongoing commitment to the institution with their outright gift of $250,000, which qualifies them for membership in the Mount Nittany Society. They indicated their gift will be directed primarily to the University Libraries to help ensure access and support for students with financial need; the Centre for the Performing Arts; and Student Mental Health Services and Support.
Bendapudi’s current compensation sheet is available online.