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By Kristin Tomasi
In a report released by the Center for Social Philanthropy at the Tellus Institute on September 27, the executive salaries at the top 20 universities in Massachusetts, including Bentley, were examined.
With many salaries over $500,000, the report raised questions about the transparency of compensation, as well as the inequality found within universities regarding pay rates between higher- and lower-level employees.
“Better disclosure requirements…will foster heightened public awareness,” Joshua Humphreys, director of the Center for Social Philanthropy and co-author of the report, wrote regarding the motivation behind the study. “Transparency, in short, invites badly needed accountability.”
“More than $157 million was disclosed as paid to the 339 officers, directors and ‘key employees’
reported by the 20 most well-endowed Massachusetts colleges during fiscal year 2009,” said the report.
The average executive salary for all 20 universities surveyed was over $464,000, placing Bentley in the median or slightly below it for most of its top employees.
The report was based on investigative research and a review of tax filings for 2009 data, the last year for which complete information is available. It includes a list of 14 of the top-paid employees at Bentley, 13 of whom receive salaries exceeding $250,000.
President Gloria Larson is at the top of the list, which also includes various vice presidents: Traci Logan, Judy Malone, Joann McKenna and Paul Clemente.
“Senior administrative salaries at Bentley are set by our Board of Trustees, based upon a review of salaries at comparable institutions, and ours do reside appropriately in the median (or slightly below it) for the schools in this region,” said the vice presidents in a joint statement.
“Our trustees, as prudent businesspeople, are interested in ensuring that we offer compensation to attract top executives, kept within a conservative median and that it is not increased precipitously,” echoed Larson. “Bentley as an institution is particularly interested in reviewing compensation of employees to ensure that we move towards a structure in which we pay at rates comparable in the marketplace.”
A main concern raised by the report is that these high executive salaries increase as tuition costs increase.
“We are also concerned about the rate of increase in higher education tuition, especially as it relates to the sacrifices that students and their families must make so that the education of their choice can be achieved,” responded the vice presidents. “It is a delicate balance that all schools must try to achieve.”
As a result, Bentley did not increase its administrator salaries in FY 2010, and has since awarded only modest salary increases. Further, these increases are aimed at maintaining competitiveness.
“The University believes it must provide the best faculty, small class sizes and top-notch facilities, such as our state-of-the art library and fitness center,” said the vice presidents. “Over the past few years, the rate of increase in tuition has declined, a welcome trend in higher education.”
“The University has made a concerted effort to reduce its administrative costs to both protect student services and to assure that the budget will be balanced,” they said. “Bentley will not lose its focus on the cost of education, and we will do our best to protect our students’ education and services.”
In regards to concerns over pay inequalities between higher- and lower-level employees, Bentley is currently undertaking a major compensation review to ensure that professional salaries across the board are within appropriate ranges. Ann Dexter, executive director of Human Resources, is leading this project.
Other schools included in the report are Amherst University, Babson College, Boston College, Brandeis University and Harvard University. With 11 employees whose compensation exceeded $1 million, Harvard has the highest level of variations in salaries.
The full report can be found online at tellus.org/publications/files/issue-brief-exec-comp-201109.pdf.
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*Amherst College
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