In order to recruit and retain effective leaders able to advance rigorous strategic goals, many boards offer a variety of compensation packages for institutional presidents and chancellors.
Our most recent Quick Governance Survey sought to understand the national trends in presidential variable pay, also known as bonuses or performance pay.
While full results will appear in the July/August issue of Trusteeship magazine, here are some quick key takeaways from the survey.
A slight majority of institutions offer variable pay.Approximately 52 percent of all respondents indicated that their president is eligible to earn performance-based variable pay as a bonus.
Presidents and chancellors are assessed annually for variable pay. The vast majority of respondents indicated that their president or chancellor is assessed annually for incentive bonuses.
A range of metrics is used to determine variable pay.Boards use multiple metrics to determine variable pay. Across independent, public, and proprietary institutions, budget targets, and fundraising goals were the most common measures.
The survey was posted on the AGB blog and sent electronically to chief executives and trustees at AGB member colleges and universities. Quick Governance Surveys are an initiative from AGB to capture member and nonmember views about hot-button higher education issues and governance practices and policies. Our intent is to provide information about the practices and views of the nation’s board members writ large. Full results will be reported in the “Datafile” column of Trusteeship.
