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Pitt's top leaders agree with pay freeze
Thursday, December 04, 2008

In a normal year, University of Pittsburgh Chancellor Mark Nordenberg and his top leadership team would have been in line for significant raises.

However, in this year of a national economic recession, their pay has been frozen.

At a compensation committee meeting yesterday, Pitt board Chairman Ralph Cappy called the past year "one of the most remarkable in our university's proud 221-year history" and said the leadership deserved "substantial" raises.

Pitt's freshman class is the best-qualified ever from the largest applicant pool ever; Pitt's research expenditures have grown; fundraising records have been exceeded; and national rankings put Pitt in good company.

But with national economic woes on his mind, Mr. Nordenberg recommended a pay freeze at the top, and the committee agreed. This is the first executive pay freeze at Pitt since 1995-96.

Other Pitt employees already have received raises for this school year based on their performances. Pitt's budget made a salary increase pool of 4 percent available, with amounts varying by performance. Continuing faculty member raises averaged 5.2 percent.

At the meeting, which took place over the phone, Mr. Nordenberg cited headlines ranging from falling stock markets to idled steel plants and said, "It seems quite clear that tougher times are coming, and we need to be prudent in preparing for them."

He said he had the "full support" of his team in making the recommendation "despite the high level of performance and significant achievements," adding, "In these troubled times, it is the institutionally responsible thing to do."

At some other college campuses, executives also are taking pay cuts, skipping raises and bonuses or making donations to their employers.

Examples listed in a Chronicle of Higher Education report last month included presidents at the University of Connecticut, University of Louisville, Rowan University, Brevard Community College and Rutgers University.

The Seattle Times reported that University of Washington President Mark Emmert -- who had the second-highest total compensation of public university leaders in the Chronicle report in 2007-08 -- decided to pass up a pay raise this year. His total compensation package is $905,000.

A year ago, Mr. Nordenberg received a pay raise of nearly 4 percent, bringing his salary to $460,000. He also received a $75,000 retention bonus for staying until the end of 2007-08. The same size retention bonus is part of this year's pay package, too. The Chronicle listed his total compensation package at $590,200 in 2007-08.

The others whose pay is frozen are:

• Jerome Cochran, executive vice chancellor and general counsel, $388,000.

• B. Jean Ferketish, secretary to the board and assistant chancellor, $190,000

• Arthur Levine, senior vice chancellor for health sciences and medical school dean, $702,000.

• James Maher, senior vice chancellor and provost, $348,000.

• Amy Marsh, treasurer and chief investment officer, $320,000.

• Arthur Ramicone, vice chancellor for budget and controller, $265,000.

Mr. Cochran, Dr. Maher and Mr. Ramicone also each received a $50,000 retention bonus for staying through 2007-08. Such retention bonuses also are available this year.

Education writer Eleanor Chute can be reached at echute@post-gazette.com or 412-263-1955.
First published on December 4, 2008 at 12:00 am
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