Indiana University President Pamela Whitten received a raise in February that increased her salary to $1 million. That’s $170,000 more than she made in 2022, but not nearly enough.
Purdue already lost President Mung Chiang to a better-paying job. He made less than $900,000 last year. His new employer, Northwestern University, paid its last president almost double his current salary.
Poor pay reduces the quality of public servants we can attract and makes it harder to retain the quality ones we have. That needs to change.
Whitten’s high salary insulates her from outside pressure
To be clear, $1 million is a lot of money. The U.S. president only makes $400,000, after all.
The U.S. president also faces daily allegations of corruption, unethical stock trades and strange merchandising deals. Not to mention, he moonlights as a cryptocurrency entrepreneur.
Better pay is not a complete solution to immoral character and unethical behavior, but it reduces the incentives for it. There’s a reason why you don’t hear about an epidemic of college presidents making administrative decisions based on personal financial benefit.
As a result, the public generally trusts university leadership.
Whitten’s salary also provides an effective hedge against faculty pressure. Many faculty called for Whitten to resign in 2024 following her handling of pro-Palestine protests on campus. That is unsurprising, given faculty are predominantly left-leaning and protected by tenure.
It’s difficult to be hated by your peers. A decent salary can make it easier to bear. Whitten’s salary also provides protection against the pressure to utilize her office for political gain.
She is a fair and effective administrator. Whitten led the university to adopt the Chicago Principles, affirming the rights of students and faculty to free expression and academic freedom. She has made admission to IU easier for in-state students, advanced the university’s research capacity and put forward a strong vision for the future that includes getting more graduates to pursue jobs in state.
Other universities pay presidents more
That said, even comparable public institutions pay their administrators much more for doing less. Indiana University has nine campuses and more than 89,000 students.
The Ohio State University has only six campuses and more than 67,000 students. Its new president makes $1.4 million. The University of Michigan has only three campuses and fewer than 69,000 students. Its president has earned up to $3 million. The University of Kentucky has only one main campus but four campuses for medical students and fewer than 39,000 total students. Its president makes nearly $1.4 million.
Whitten’s old stomping grounds, Michigan State University, has one main campus but eight campuses for medical students and about 52,000 total students. Its trustees just offered to double its president’s salary to $2 million in an attempt to retain him. That still wasn’t enough.
Whitten has earned CEO pay
IU is in the process of implementing several parts of its transformative IU 2030 plan. The university already renewed Whitten’s contract through 2031, but it is vital she remains at the helm afterward to see it through and begin implementing her vision for the next decade.
As such, the university should raise her salary to at least match peer institutions in surrounding states. Especially so at a time when state budget cuts are forcing the university to act more like a business and Whitten to act more like a CEO.
An increasing share of IU’s general fund is coming from student tuition and fees, meaning the university needs to work harder to compete to attract students. The share coming from “other revenue” is increasing even faster as state support is shrinking.
That “other revenue” comes from a number of sources, including donations and grants. IU is also increasingly venturing into public-private partnerships and other business ventures to generate revenue.
For example, IU just announced the creation of a university-affiliated nonprofit to drive startup activity and attract businesses. That venture will help turn research, development and real estate into a revenue-generating opportunity. IU also recently announced a $40 million research partnership with Eli Lilly and another partnership with Zimmer Biomet.
The university’s diversification of revenue streams is undoubtedly a good thing. It makes higher education more resilient to economic and financial pressures as well as shifting levels of state support.
As a result, the university is in excellent financial health despite recent state funding cuts, according to a recent independent analysis. It has higher cash reserves and a better credit rating than many of its peers.
That “other revenue” also matters a great deal to students. It gives them opportunities while providing the university the ability to keep tuition flat.
Whitten is leading all of that while state leaders ask her to do more with less. She could certainly do less for much more pay at another public institution or in the private sector.
If IU wants to keep Whitten and continue exceeding expectations, it should fairly compensate her.
Contact Jacob Stewart at 317-444-4683 or jacob.stewart@indystar.com. Follow him on X, Instagram, Facebook and TikTok.
This article originally appeared on Indianapolis Star: IU President Pamela Whitten deserves another raise | Opinion
Reporting by Jacob Stewart, Indianapolis Star / Indianapolis Star
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By Jacob Stewart, Indianapolis Star | USA TODAY Network
