The cabinet minister responsible for higher education in Nova Scotia has told those who chair the boards at Nova Scotia universities that paying people after they retire is "unacceptable."

Minister Kelly Regan says the board chairs were "receptive" to her complaint.

Tom Traves, who was the president for Dalhousie University, retired in 2013 but he was still the highest-paid employee at the university last year with a salary of $457,521.

The arrangement is part of the contract the university agreed to in February 2010.

But Regan says no more.

"I indicated to them that I don't like seeing benefits being paid after people are through their compensations," she said of her meeting with the board chairs.

"Having a salary after someone has finished their term of work is not OK."

Regan said she made it clear that university boards should not approve similar contracts in the future.

Traves retired from Dalhousie University in 2013. (Paul Withers/CBC)

"I indicated to them that these types of agreements are not acceptable anymore," she said. "They understood where I was coming from. At a time when the universities are asking government and students for more money it's just simply not acceptable for this kind of thing to go on."

The minister may demand the change, but she admitted there is little she can do if they disregard her request. She says she's asked for the topic to be discussed at the next meeting of the Council of Ministers of Education.

Kelly did offer a veiled threat.

"Basically, what you're asking me is, would I take away their funding because that's really the only stick I have?"

She didn't answer her own question.