Last week it was Governor Malloy’s top aides who were doing the money dance with their raises of up 12 percent.
This week, it is UConn President Susan Herbst who is doing the celebrating.
When Governor Rell and Governor-Elect Malloy announced Susan Herbst’s appointment as UConn’s President on December 20, 2010, she was provided with an initial compensation package of $575, 000.
That salary was 50 percent higher than UConn’s president made ten years earlier (2000). With her new raise, Herbst’s annual compensation will reach at least $831,000 by 2019, an increase of nearly 45 percent over where she started.
As the CT Mirror and other outlets reported this week, Herbst’s, new contract increases her salary by 5 percent each year and provides that the UConn Board of Trustees or a committee shall review her salary annually and may increase, but not decrease her compensation package.
In addition, Herbst will receive an $80,000-a-year “deferred compensation” payment that she can invest in a tax-deferred account for her retirement, along with a $38,000 “supplemental retirement benefit”.
The new contract also promises her a $40,000 performance bonus each year, should she keep the Board of Trustees in her good graces.
The contract also guarantees her two “retention bonuses” totaling $200,000, one in 2016 and one in 2019.
As part of the contract, Herbst agrees to live in the Storrs presidential mansion, but will also take up residence at the 7,000 square-foot “Hartford Property,” which is located just down from the Governor’s Mansion on Scarborough Street in Hartford
The contract also provides that the University will continue to provide staff to maintain the two homes and “assist with university related entertaining.”
Of course, the University will continue to provide the President with a state car and driver.
In addition, the University of Connecticut’s Foundation will continue to provide what has been a long-standing practice of providing the President with a leased car, of which the University is responsible for all necessary repairs, insurance and maintenance. If President Herbst does not want the extra car, the Foundation will provide her with an annual check for $15,000.
As one would expect, in full political spin mode, at the same time that Governor Malloy’s political appointees announced Herbst’s new contract, the university released “a comparison of Herbst’s compensation with that of similar institutions.”
The University also stressed that fact that while the UConn Foundation has been providing UConn with $175,000-a-year to help pay for Herbst’s salary, that amount will increase to $300,000 a year starting in 2015.
According to the CT Mirror,
“This is Herbst’s second pay increase since she became UConn’s leader. UConn’s spokesman said that in 2012, “Chairman McHugh, after consulting other board members,” signed an amended contract giving her a $30,000 salary increase and a $100,000 increase in the retention/deferred compensation bonus she will receive in 2016.
State law reads, “the board of trustees shall fix the compensation” of the president and similar officials. But, the UConn spokesman said, “There was no formal vote taken, because it was a single amendment to an existing contract.”
As the Hartford Courant noted, “Earlier this year, UConn officials said that cuts in state funding for the university system would require them to increase student tuition by 6.5 percent to help close a potential $42.6 million deficit.”
In fact, since 2000, the State of Connecticut has been consistently reducing public support
Over the past fifteen years, the cuts in state funding have had a significant impact on UConn, the Connecticut State Universities and Community Colleges.
As the state entered the 21st Century, Connecticut State Government provided UConn with an operating subsidy that accounted for about 48 percent of the University’s total costs.
Following Governor Malloy’s record cuts to Connecticut’s public institutions of higher education, state support for UConn has dropped to the point that the State accounts for only 28 percent of UConn’s total cost.
The reduction in support has transferred the burden onto the backs of Connecticut’s students and their families. The total cost of attending UConn has risen 112% since 2000, and that was before the decision to raise tuition another 6.5% this year.