Detroit ― The next president of Wayne State University has agreed to a contract nearly double what he was making in his previous role as dean of the university’s law school and that gives him a bonus for staying five years, according to his presidential contract that the university released Wednesday.
Interim President Richard Bierschbach, who officially becomes the university’s 14th president on Monday, will earn A base salary of $795,000, the contract shows ― more than his interim president’s annual salary of $769,000. His salary is expected to increase 2.5% the first year and 5% the next. Any other increases are subject to the Detroit university board’s discretion.
Predecessor Kimberly Andrews Espy started with a base salary of $690,000 a year in 2023 that was raised at least 3% each succeeding year, according to her contract. Espy received a $760,449 payout from the university when she resigned in September, the equivalent of a year’s salary, after a tenure of a little more than two years.
“Bierschbach’s compensation package is materially richer than (former President Kimberly Andrews) Espy’s,” said James Finkelstein, a professor emeritus of public policy at George Mason University and a higher education expert. “The bonus structure itself is not unusually large by national standards, but it is materially larger than his predecessor’s.”
Bierschbach is also eligible for performance bonuses of $75,000 if he meets goals agreed upon by himself and the board, the contract shows. Those goals are the same that Espy was expected to meet, a comparison of their contracts shows. Bierschbach will also receive a separate $25,000 payment tied to his interim service.
Bierschbach’s contract has one clause that sticks out when comparing his contract to Espy’s and those of other Michigan university presidents. If he finishes his five-year term as president, he will receive an additional $400,000.
Former Wayne State President M. Roy Wilson had a similar provision in his contract, approved in 2018. He received a $150,000 for staying through July 31, 2023.
Board Chair Bryan Barnhill declined to comment on this clause in Bierschbach’s contract and directed questions to University Associate Vice President of Communications Matt Lockwood, who said he would have a statement later in the day.
Wayne State Governor Michael Busuito said he felt the completion clause and other compensation for Bierschbach were fair, given the president’s and the university’s situations.
“He has two young children,” Busuito said. “His wife is a professional, she has her own career. … We thought this made sense for what we’re asking him to do.”
By promoting the interim president, Finkelstein said the university was able to go without a “customary market check on both selection and compensation.” He added that the Board of Governors chose “stability through consolidation rather than competition, and it paid a premium to secure it.”
Busuito confirmed a presidential search was approved, but wasn’t fulfilled after many board members took a clear liking to Bierschbach after listening sessions.
“It was needless to (go through with the search) at that point,” he said.
Espy resigned in September, citing “personal reasons.” Her resignation came a week after two sources told The Detroit News that friction between the president and the board had grown. Part of the issue was rooted in the bipartisan board’s growing displeasure with her management style, including concerns about her communication over the recent placement of the dean of the School of Medicine on paid leave in August without explanation.
Public university presidents nationwide haven’t stuck around as long as they used to. A study released by the American Council on Education in 2023, the latest data available, found that presidents had been in their positions an average of 5.9 years, amounting to 2.6 years less than in 2006.
Other perks in his contract
Unlike other Wayne State presidents, Bierschbach, 53, isn’t expected to move to the on-campus Jacob House. His contract said this was to provide stability for his school-aged children. Oakland County property records show Bierschbach had a home in Huntington Woods as of 2022.
Bierschbach will also use his own car and receive an allowance of $750 per month.
Like other presidents, the next president will receive the maximum employer contributions to his retirement accounts.
The university will pay for Bierschbach’s membership at the Detroit Athletic Club or other clubs for “business entertainment” or meetings.
All of Bierschbach’s travel covered by the university must be related to business, within reasonable limits and in support of his professional pursuits, the contract said. He’s also eligible for up to $20,000 annually to cover travel for his spouse or other guests.
After the completion of his term, Bierschbach is eligible for a one-year sabbatical and then a return to the faculty. He will be able to choose the courses he teaches, and they are not limited to law school courses, the contract said.
Termination
If Bierschbach were fired without cause, he’d receive his entire salary as a severance payment for the first year. In the second year, he would get half of his last presidential salary.
If he were to be fired with cause, he would lose his tenured faculty position as well.
Bierschbach can also resign by giving the board 90 days’ notice ― the same provision in Espy’s contract. If he resigned, all of his compensation and benefits would end on his last day.
Under the resignation pact with Espy, the university provided Espy and her husband, Paul Kaufmann — who is identified as a university senior attorney and director — with two years of full health care coverage, unless her new employer provided the same benefits.
satwood@detroitnews.com
This article originally appeared on The Detroit News: Wayne State’s new president gets hefty bonus to complete 5-year term
Reporting by Sarah Atwood, The Detroit News / The Detroit News
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