University President John J. DeGioia, who for the past three years has captained an institution increasingly dogged by financial difficulties and tuition hikes, draws a salary that places him among the highest-paid college executives in the nation, according to a new survey.
The recent study, conducted by The Chronicle of Higher Education, found that DeGioia is one of 42 private university presidents in the United States to earn salaries and benefits that total over $500,000.
DeGioia’s total compensation was $587,922, including $29,592 in benefits, in the 2002-03 fiscal year, the most recent year for which tax records are available.
DeGioia received a $116,149 increase in salary and benefits from the 2001-02 to 2002-03 fiscal years, and his 2002-03 salary represents over a twofold increase in presidential pay at Georgetown since 1996-97.
DeGioia’s pay is comparable to the compensation given to executives of the wealthiest and most prestigious universities in the country. He earns over $50,000 more than the presidents of Harvard and Princeton, and his salary exceeds that of the presidents of Cornell, Stanford, Duke and Dartmouth.
American University and George Washington University both pay their presidents over $600,000, and DeGioia’s compensation is far less than that given to executives of several colleges including Yale, Johns Hopkins University and the University of Pennsylvania.
University spokeswoman Laura Cavender said that DeGioia’s salary, which is set by Georgetown’s board of directors, is necessary for the university to retain qualified officials in a competitive environment.
“Georgetown operates in an extremely competitive marketplace and salaries of senior administrators are reflective of that,” Cavender said. “We work hard to attract talented senior administrators and must be able to offer compensation levels that are competitive with our peer institutions.”
Large increases in executive pay have fostered allegations in the higher education community from faculty groups that say compensation levels have become excessive and university administrators who claim higher salaries are necessary because presidents are now required to work harder than ever.
The number of private university executives receiving salaries and benefits over $500,000 in the 2002-03 increased 56 percent from the previous fiscal year, according to the Chronicle’s survey.
Faculty pay levels nationwide have not kept pace with increasing executive compensation. Professors at private universities received an average 4 percent raise over the past year, according a recent report by the American Association of University Professors.
John Curtis, research director at the AAUP, said that rising executive salaries far exceeded faculty pay nationwide and at Georgetown. He cautioned against viewing universities and their executives as corporate entities operating in a competitive environment.
“Our concern is that if you make the compensation on that basis, it’s part of a growing trend toward running colleges and universities as corporations,” Curtis said. “In general, faculty raises have just kept pace with inflation . The increase in presidential salaries is out of proportion to the general increase in education funding.”
Curtis said that average faculty salaries at Georgetown have risen $28,000 for full professors in the last decade. Associate and assistant professors have received average increases of $21,000 and $19,100 respectively during the same period.
Curtis did note, however, that Georgetown faculty salaries rank in the top fifth in a comparison with other doctoral universities.
Administrators have defended rising presidential compensation levels by saying university executives are now required to work longer hours than ever before, devote more time and energy to fundraising and deal with colleges’ difficult financial circumstances brought about by a weakened economy.
Georgetown has faced particularly difficult financial problems over the past several years. Faced with rising health care and security costs, debt accrued from the Medical Center’s fiscal troubles, dwindling federal aid and a small endowment for a school of Georgetown’s caliber, administrators have been pressed to increase tuition and fees significantly.
Undergraduate tuition has risen 17.7 percent in the last three years, and university room and board have also grown more costly.
University officials have cited the need for campus improvements, new facilities, student financial aid and competitive faculty salaries to explain the increasing cost of attending Georgetown.
Some students expressed concern with the large increases in DeGioia’s university compensation.
Mike Kochner (SFS ’05) said that while the leader of a prestigious school like Georgetown needs to be given a salary comparable to that of other universities’ executives, there was no need to significantly increase the president’s pay during a time of financial difficulty and rising tuition and fees.
“I respect his work but I don’t know if he should be making that much,” Kochner said. “Obviously, there’s a lot more things that the university could be spending its money on.”
Kochner was also concerned about the size of Georgetown’s endowment relative to those of other universities.
“Georgetown’s not a rich school,” he said. “It’s really not right to be taking that money.”
Catherine Strzelczyk (MSB ’08) said DeGioia should justify his salary by telling the Georgetown community about the work he has accomplished during his term as president.
“Even I’m having a hard time paying for this education, but I think it needs to be looked at how much he’s been doing,” Strzelczyk said.