...this doesn't bother me nearly as much as some people. Certainly not while college football coaches earn far more. The top ten highest paid football coaches are all taking home $3.7 million+, and that's at state universities[1]. Personally, I would value the university president more than the football coach. [1]: http://bleacherreport.com/articles/1840036-usa-today-reveals...
Universities make a boat load of money on football. It's important to have a great coach.
Many private college presidents make $1 million
31–40 of 46 posts
Re: Many private college presidents make $1 million
#32Supply and demand, supply and demand, supply and demand. I wish more people understood this most basic law of economics. If the supply of people who are both willing and able to handle the position of university President is low, wages (which are the price of labor) will rise, thus enticing those who are able but not willing to meet the demand. The prevailing average wage rate for university Presidents is simply a re…
I was actually surprised that the figure is so low. It feels like anyone able to do the job of a college president should be able to make more than $1m in other industries (Wall St.? Tech companies? Government?) Of course the market doesn't lie, so perhaps talent at that caliber is less expensive than I expected (or perhaps the caliber is lower than it appears).
Re: Many private college presidents make $1 million
#33Supply and demand, supply and demand, supply and demand. I wish more people understood this most basic law of economics. If the supply of people who are both willing and able to handle the position of university President is low, wages (which are the price of labor) will rise, thus enticing those who are able but not willing to meet the demand. The prevailing average wage rate for university Presidents is simply a re…
The supply is artificially restricted by the way that people think the job can only be done by a small incestuous class of people. The qualifications seem to be a mastery of jargon and social norms in this sub-culture. Are these presidents really adding $1 million of value a year? Or are they just another part of America's self-entitled leadership class that doesn't seem to have any checks on it?
Re: Many private college presidents make $1 million
#34Supply and demand, supply and demand, supply and demand. I wish more people understood this most basic law of economics. If the supply of people who are both willing and able to handle the position of university President is low, wages (which are the price of labor) will rise, thus enticing those who are able but not willing to meet the demand. The prevailing average wage rate for university Presidents is simply a re…
The supply is artificially restricted by the way that people think the job can only be done by a small incestuous class of people. The qualifications seem to be a mastery of jargon and social norms in this sub-culture. Are these presidents really adding $1 million of value a year? Or are they just another part of America's self-entitled leadership class that doesn't seem to have any checks on it?
Their job is to raise money. If they bring in $200 million in donations, is a $1 million salary really so out of line?
Re: Many private college presidents make $1 million
#35Earlier quoted context omitted.
I generally agree with your implied point: that government subsidization of education leads to price inflation in that sector, but these are private schools, where government subsidies do not (to my knowledge) apply.
The state governments do not directly fund the private institutions, but they still get a lot of government subsidies indirectly. The students can only afford to pay tuition thanks to federal loans and grants, and the professors can only afford their research thanks to government research grants.
I down voted you by accident. You are correct. Imagine a world with no 3rd party student loans. Schools would become cheaper pretty fast.
Re: Many private college presidents make $1 million
#36Earlier quoted context omitted.
I think the solution is that everyone should get subsidized health care, shelter, and food. I don't think you should need to work to have these things.
That's how it goes it many developed countries.
I don't get why we have free public education, but not these other things which are more essential.
Re: Many private college presidents make $1 million
#37Supply and demand, supply and demand, supply and demand. I wish more people understood this most basic law of economics. If the supply of people who are both willing and able to handle the position of university President is low, wages (which are the price of labor) will rise, thus enticing those who are able but not willing to meet the demand. The prevailing average wage rate for university Presidents is simply a re…
That makes sense when the product in question faces a market test, but here that condition doesn't apply. Almost all universities are organized such that they are run by perpetual boards of directors, with only nominal oversight by a state AG.
The selection process for such board seats is not designed, nor does it, produce members whose incentives are identical to a hypothetical person privately purchasing college president labor from among all available choices.
Among other things Presidents themselves, after a reasonable tenure, have large influence on the composition of their boards.
Re: Many private college presidents make $1 million
#38Supply and demand, supply and demand, supply and demand. I wish more people understood this most basic law of economics. If the supply of people who are both willing and able to handle the position of university President is low, wages (which are the price of labor) will rise, thus enticing those who are able but not willing to meet the demand. The prevailing average wage rate for university Presidents is simply a re…
I was actually surprised that the figure is so low. It feels like anyone able to do the job of a college president should be able to make more than $1m in other industries (Wall St.? Tech companies? Government?) Of course the market doesn't lie, so perhaps talent at that caliber is less expensive than I expected (or perhaps the caliber is lower than it appears).
Or the other option is that the market does lie.
Re: Many private college presidents make $1 million
#39This is sensationalism. There are many college athletic coaches in state schools being compensated over a million a year. Look at the recent contract extension of Nick Saban at the University of Alabama.
And the justification for that is the same; these people bring in tons of money.
First link I could find to support that: http://www.insidehighered.com/news/2012/07/03/report-finds-a...
Re: Many private college presidents make $1 million
#40Supply and demand, supply and demand, supply and demand. I wish more people understood this most basic law of economics. If the supply of people who are both willing and able to handle the position of university President is low, wages (which are the price of labor) will rise, thus enticing those who are able but not willing to meet the demand. The prevailing average wage rate for university Presidents is simply a re…
That makes sense when the product in question faces a market test, but here that condition doesn't apply. Almost all universities are organized such that they are run by perpetual boards of directors, with only nominal oversight by a state AG. The selection process for such board seats is not designed, nor does it, produce members whose incentives are identical to a hypothetical person privately purchasing college pr…
How is this different than politics or nepotism within a private corporation or charity?
What about postsecondary education will keep larger market forces (i.e., attendance rates and donation levels) from solving this problem?