Texas university leaders still get top dollar, but pay bumps slow

Former University of Texas System Chancellor Retired Admiral William McRaven Former University of Texas System Chancellor Retired Admiral William McRaven Photo: John Davenport, STAFF / San Antonio Express-News Photo: John Davenport, STAFF / San Antonio Express-News Image 1 of / 12 Caption Close Texas university leaders still get top dollar, but pay bumps slow 1 / 12 Back to Gallery

Leaders of Texas’ largest public universities and higher education systems remained among the highest-compensated in the country in 2016-17, but their pay did not jump much after years of significant growth, according to a Chronicle of Higher Education survey released Sunday.

The organization’s annual report showed four Texas leaders were among the 15 best-compensated university executives in the nation, with University of Texas System Chancellor William H. McRaven’s $1.5 million pay package ranking third and Texas A&M University System Chancellor John Sharp’s $1.29 million ranking fifth. Renu Khator, who holds the dual role of University of Houston System chancellor and University of Houston president, placed 14th at about $913,350.

Texas’ university leaders traditionally have sat near the top of the compensation survey, largely due to two factors: They head some of the nation’s largest education institutions, and state governance boards have chosen to authorize relatively high pay packages. The compensation agreements occasionally have drawn mild public criticism — Lt. Gov. Dan Patrick criticized million-dollar executives in 2016 — but university board members often defend them as high-value deals for billion-dollar institutions.

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Compensation for Texas’ 10 highest-paid university leaders have skyrocketed in recent years, rising 62 percent from 2009-10 to 2015-16, according to the Chronicle of Higher Education’s data. Those increases stalled for nearly all executives in 2016-17, up just 2 percent.

McRaven, Sharp and Texas A&M University President Michael Young, who each earned at least $1 million in 2016-17, made roughly the same amount in the previous year. McRaven stepped down from his position in May, with Larry R. Faulkner assuming the role on an interim basis.

Khator’s compensation bumped up about 7 percent in 2016-17, largely due to her bonus pay increasing from $150,000 to $200,000. University of Houston officials, contacted Thursday, said they could not immediately answer why Khator’s bonus rose in 2016-17. In response to questions about the appropriateness of Khator’s compensation, they referred to a 2016 letter authored by University of Houston System Board of Regents Tilman J. Fertitta, who said Khator’s “incredible accomplishments” during her nearly decade-long tenure warranted her pay.

“I can say unequivocally that Chancellor Khator’s salary is appropriate based on her stellar track record and the achievements she has helped the UH System and the University of Houston obtain,” Fertitta wrote.

Faculty satisfied

Among the 10 highest-paid executives, only Texas Woman’s University Chancellor and President Carine M. Feyten saw a major year-over-year increase, from $434,500 to $658,000. Feyten’s base pay rose about $35,000, she earned a $30,000 bonus, and she received a $161,000 retention award tied to completing the third year of her contract.

In a statement, Texas Woman’s University Board of Regents Chairman Nolan Perez said Feyten’s performance “has been extraordinary” and she “has crafted an innovative vision for the university.” School officials noted Feyten has gifted her base pay increases and bonuses to a university health and well-being initiative.

Rebekah Bell, president of the nonprofit Texas Faculty Association, which represents the rights and interests of higher education faculty and staff, said executive compensation has not been a major point of contention among her members. Rather, she said her members voice more concern about spending on all administrative salaries relative to tuition increases and faculty pay.

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“The overall cost of education is being passed on to students, and that’s where a lot of our conversation has been,” Bell said. “Our great concern that we’ve talked about is, we’ve wanted the state to run a real analysis of the cost of education for students, and I would love for that to include the administrative cost.”

Resigned, but raking it in

The Chronicle of Higher Education’s analysis considers base salary, bonuses, nontaxable pay and deferred payouts to leaders of nearly 250 public institutions. It does not include other benefits, such as retirement contributions, set-aside pay, housing benefits and other comfort perks — which sometimes total hundreds of thousands of dollars.

Executives’ rankings also can fluctuate greatly year by year, particularly if they receive large one-time bonuses for retention or performance. For example, the nation’s highest-paid university executive in 2016-17, former University of Louisville President James R. Ramsey, raked in $4.3 million, nearly all of which came from a deferred payout and settlement agreement following his resignation amid mounting scandals at the school.

jacob.carpenter@chron.com

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