Paying Our Presidents: What Do Trustees Value?

  • Ehrenberg R
  • Cheslock J
  • Epifantseva J
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Abstract

Panel data on the salaries and benefits of private university and college presidents are used to infer the factors that trustees of these institutions value. Salary-level equations suggest that presidents' salary and compensation are positively associated with enrollment and endowment levels and the test scores of their entering students. Salary and compensation change equations provide only weak evidence that presidents' pay increases are related to their fundraising success and no evidence of rewards for their institutions' freshmen test scores increasing.

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Authors

  • Ronald G. Ehrenberg

  • John Jesse Cheslock

  • Julia Epifantseva

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