Administration

Penn State president and five execs recommended for modest pay increase

MONACA, Pa. – In line with the general salary increase program for the entire University and based on the recommendations of Penn State President Eric Barron, five University executives have been granted salary increases totaling in aggregate 2.9 percent. University raises targeted 1.5 percent to 2 percent increases for merit, approximating inflation, and a pool of 1 percent for promotions, equity, market and exceptional performance.  

Barron himself is being recommended for a 3 percent lump sum merit increase in lieu of an increase to his base salary, which the full Board of Trustees must vote on Friday (July 17).

In a meeting today (July 16) of the Board’s Committee on Compensation, the salary adjustments recommended by Barron for his senior leadership team were based on not only their experience, performance, areas of oversight and duties, but also on the University’s pool of allocated funds for annual adjustments. Equity and market adjustments also are informed by a detailed comparative compensation analysis of 30 other American research institutions, 15 public and 15 private.

“Each of these individuals have served during a time of considerable growth and progress and the University has accomplished a great deal under their leadership,” Barron said. “All have responsibilities that spread across Penn State’s 24 campuses, involving our 17,000 faculty and staff, and nearly 100,000 students.”

The compensation of the following individuals (classified as Tier II executives) has been approved:

— Steve Dunham, chief general counsel, an annual salary of $551,364;

— Nicholas Jones, executive vice president and provost, annual salary of $511,364;

— Rodney Kirsch, senior vice president for Development and Alumni Relations,  new annual salary of $481,320;

— David Gray, senior vice president for Finance and Business, recommended for a general salary increase and a market adjustment, bringing his salary to $470,568.

In addition, the Tier IIA executive recommended for a salary increase is Penn State Athletic Director Sandy Barbour.

— Barbour will now receive an annual salary of $720,996.

“These increases are consistent with the general salary increase program for the entire University and represent an overall aggregate increase for Tier II and Tier IIA executives of 2.9 percent, with the highest increase being 4.1 percent,” Barron said.

As per the Compensation Committee Operating Guidelines, a vote from the full Board of Trustees is not needed to approve salary increases for members of senior leadership classified under Tier II and Tier IIA. Only action related to the compensation of the University President (Tier I) requires a vote of the full board. However at Friday’s meeting, the committee will inform the full board of today’s decision.

In an executive session of the committee on June 29, the goals and accomplishments of President Barron from the previous year were reviewed. The committee also reviewed a presidential compensation analysis prepared by an external consultant, and performance feedback was solicited from various internal and external constituents. Based on those findings, the committee will recommend to the full board that in lieu of an increase to Barron’s base salary for the fiscal year beginning July 1, 2015, a merit award of 3 percent (or $24,000) should be extended to the president in a one-time lump sum payment. His annual salary will remain at $800,000.

“In his first year, President Barron made a rigorous effort to connect with the many constituencies of the University, frequently traveling to meet with alumni and legislators to assess issues and gather information,” said Paul Silvis, chair of the Compensation Committee. “Listening, sharing ideas, and developing relationships were important ways for Dr. Barron to share his initiatives that advance the strength and excellence of our University.”

Silvis noted that President Barron’s six major topics, introduced early in his presidency, have already moved Penn State toward providing more access to students, creating a culture of entrepreneurship and innovation, and focusing the University community more intensely on excellence. The six topics that are the focus of Barron’s initiatives are: 1) Excellence; 2) Student Engagement; 3) Diversity and demographics; 4) Student career success and economic development; 5) Accessibility; and 6) Technology.

“Dr. Barron’s strategic plans for Penn State have been embraced vigorously and are showing results,” Silvis said. “His focus on economic development, student success and job creation is beneficial to Penn State and the Commonwealth overall.”

The Committee on Compensation was formed in November 2013 and is charged with approving the compensation packages of a small group of executives, in order to ensure compensation decisions are based on data and comparative analyses.

These salary adjustments will be effective July 1, 2015.

Last Updated July 22, 2015

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