How would you like your employer to increase your compensation package by 43 percent?
If you would, just follow these two steps:
1. Become the President of the University of Pennsylvania.
2. Negotiate the deal with the Board of Trustees
That’s exactly what Amy Gutmann did.
The University of Pennsylvania increased Gutmann’s compensation package from $1,462,742 in 2010 to $2,091,764 in 2011, according to a recent report in The Daily Pennsylvanian.
The report is based on the University’s most recent tax filing. Gutmann’s 2011 compensation package marks more than a 170 percent increase since 2005, the year Gutmann became President.
Let’s put Gutmann’s compensation into perspective.
The New York Times reported in 2011 that, “in the decade from 1999-2000 to 2009-10, the average presidential pay at the 50 wealthiest universities increased by 75 percent.”
Among Ivy League university Presidents, Gutmann has consistently ranked third in recent years, behind Columbia University and Yale University. However, in 2010, Gutmann was the 12th-highest-paid private university president in the nation, according to a report in The Chronicle of Higher Education. That was not good enough according to David Cohen, Penn’s Board Chair and Chair of the Compensation Committee. Here’s what The Daily Pennsylvanian reported:
After seeing that report, Cohen said, the compensation committee was struck that Gutmann had not placed in the top 10. Given the scale and complexity of Penn, as well as Gutmann’s performance, he said, the compensation committee believed it needed to adjust Gutmann’s compensation to bring it more in line with her peers.”