Penn president Gutmann's pay tops $2 million

Philadelphia Inquirer ^ | 08/31/2013 | Robert Moran

[Kid Shelleen]

The University of Pennsylvania sharply increased the compensation package for its president, Amy Gutmann, from $1.46 million in 2010-11 to more than $2 million in 2011-12 - a pay boost of 43 percent, according to the university's latest tax filing. David L. Cohen, executive vice president of Comcast and chairman of Penn's board of trustees, said in a statement that Gutmann's compensation "is very much performance driven, and speaks to the extraordinary success that she has had in recent years." Cohen said the trustees "feel that we have the best university president in the country in Amy Gutmann and we believe her compensation should reflect that reality

[RobbyS]

So long as uncle sam keeps pumping tuition money into higher education, people like this can depend on getting more and more for doing ....what?

[Grams A]

My thoughts exactly. IMO no one in a not-for-profit organization is worth $2.0M per year. Business enterprise that is making a profit is another issue entirely. Wonder just exactly what wonderful things she is doing that would merit this kind of salary - it certainly isn’t turning out college grads who know anything. No wonder tuition is so expensive.

[Hostage]

It is my understanding that university presidents have a primary responsibility to raise funds for the university.

Amy must be burning a path on fund raising.

[Kid Shelleen]

Fund raising and doubling the financial aid package.

[Sooth2222]

Not just Uncle Sam, of course. And Uncle Sam isn't going to be an indentured servant for years and years while paying off those loans.

I think universities are still supposed to be non profit and a compensation package like that from a non profit institution is absurd.

[grumpytimm]

The president talks frequently about making education more
affordable, which actually means making it easier to get
student loans. Haven’t heard him talk about making it more
affordable by reducing the size and pay of the college’s
administration. I guess when it comes to the pay of college
presidents that he is a free-market advocate.

[Grams A]

Fund raising and doubling the financial aid package.”

Then she should be paid out of the funds she raises and not out of tuition income.

[The_Reader_David]

Actually, President Gutmann earns her pay. The primary duty of a university president, primarily at private universities, is fund-raising. Penn, under her leadership, recently exceeded its goal of raising $4 billion dollars (yes, with a "b") in private donations to its endowments in (I think) a three-year fund-raising campaign.

I'm a Penn alumnus (Grad '84), and even though a lot of the antics of my old grad school's home university drive me to distraction (who here remembers the "water buffalo incident"?), there are good people on the faculty: Alan Kors, in history for instance, most of the faculty of the Wharton School, the folks doing cutting-edge robotics work in their engineering college,...

Penn actually funds a great many students on full scholarships from the income from its endowment. When they redeveloped a large swath of West Philadelphia, using endowment money (which got it out of the market at the time of the crash), they also made a commitment to provide any poor kid from West Philadelphia (most of which is still a slum -- better than North Philadelphia, but still) who made the regular admission cut with a full-ride scholarship, and they've carried through.

[The_Reader_David]

Then she should be paid out of the funds she raises and not out of tuition income.

You do realize money is fungible. Considering President Gutmann led a fund-raising campaign that raised over $4 billion, I think we're good on saying she's being paid out of money she raised, and has covered her salary and benefits for her tenure as Penn's president even if she lives as long as Moses and works til the day she dies.

[Albion Wilde]

So long as uncle sam keeps pumping tuition money into higher education, people like this can depend on getting more and more for doing ....what?

She oversaw the acquisition of a huge piece of riverfront land between the campus, Philadelphia's Penn Station and the Schuylkill River, raised an enormous amount of funds, much of it from successful alumni, and oversaw a huge expansion project with all kinds of new facillities on that scenic land. It is a substantial permanent improvement.

[Albion Wilde]

(who here remembers the "water buffalo incident"?)

I remember. But it was before Gutman.

[GeorgeTex]

The water buffalo incident is one of many reasons why I do not donate to Wharton and Penn (Wharton undergrad, Class of 1982). Political correctness at its finest.

[Kid Shelleen]

Of course you are right but they have a nice racket going. Why not keep milking Uncle Sam?
The students feel like they are getting an elite education because the tuition is so high and they are forever grateful to Dear Leader for making loan money available. The donors feel important because they get invited to nice cocktail parties or get something named for them. The administrators can hire more professors and staff with the donations, giving them more political power so they can get more donations and aid . Note that one of the board of trustees was the VP of Comcast.

[Kid Shelleen]

water buffalo incident"?
I remember that one.
I hope I did not sound like I was bashing Penn.

Still one of the best universities in the world (engineering, ENIAC, Penn Law, Wharton, Veterinary school, Medical school, WXPN) However, I am sure you know it takes a lot of political favors to get anything done in Philly and I am pretty sure Gutman wont be joining the Tea Party soon, if you get my drift.

[RobbyS]

And this is her commission? $2 million a year is still a lot of money to pay a gladhander. The worst thing about this is the ripple effect: other presidents can point to this as a gold standard to which they mighty aspire. The enormous acceleration in administration costs of higher education in the last 30 years owing to high salaries and the padding of payrolls can be attributed to the easier and easier availability of federal student loans. Compare the cost of attending Duke in 1980 with the cost of attending today.

[Intolerant in NJ]

Ah, this week’s reason for being proud I haven’t contributed to my Alma Mater for forty years.....