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Paying our Presidents: What do Trustees Value?

Author

Listed:
  • Ronald G. Ehrenberg
  • John L. Cheslock
  • Julia Epifantseva

Abstract

We use panel data on the salaries and benefits of private university and college presidents for the 1992-93 to 1996-97 period to try to infer the factors that the trustees of these institutions value. Salary level equations suggest that the salary and compensation of the presidents are positively associated with the enrollment and endowment levels of their institutions and the test scores of their entering students. Salary and compensation change equations estimated for the presidents who remained in their positions for four years provide only weak evidence that presidents' pay increases are related to their fund raising success and no evidence that they get rewarded for their institutions' freshmen test scores increasing.

Suggested Citation

  • Ronald G. Ehrenberg & John L. Cheslock & Julia Epifantseva, 2000. "Paying our Presidents: What do Trustees Value?," NBER Working Papers 7886, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:7886
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    Cited by:

    1. Amanda H Goodall, 2005. "Should Research Universities be Led by Top Researchers? Part 1: Are they?," HEW 0506003, University Library of Munich, Germany.
    2. Ronald G. Ehrenberg, 2002. "Studying Ourselves: The Academic Labor Market," NBER Working Papers 8965, National Bureau of Economic Research, Inc.
    3. Monks, James, 2007. "Public versus private university presidents pay levels and structure," Economics of Education Review, Elsevier, vol. 26(3), pages 338-348, June.

    More about this item

    JEL classification:

    • J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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