ASU President Michael Crow, UA's Ann Weaver Hart get 6-figure bonuses

Arizona State University President Michael Crow and University of Arizona President Ann Weaver Hart received six-figure merit bonuses for meeting a series of long-term goals set by the Arizona Board of Regents.

The regents on Friday voted to pay Crow $150,000 in performance incentives that bring his total compensation and benefits to about $1 million for fiscal 2015. Hart got a $115,000 incentive for total compensation of $753,700.

Northern Arizona University President Rita Cheng, who was hired last year, receives a $40,000 bonus on top of $520,200 in salary and benefits. She will be eligible for a six-figure bonus if she meets a series of goals in 2017.

Performance incentives for college presidents aren't that common but such bonuses have been standard practice in the business world for years.

This is the third year presidents of Arizona's three state universities have been eligible for performance incentives as part of their contracts. Crow and Hart each earned $40,000 in bonuses the past two years. This year, the presidents were measured on additional goals, including whether they met benchmarks for improving student retention, increasing the number of bachelor's degrees and growing research funding.

The goals are in line with the regents' 2020 vision plan, which is designed to increase the number of Arizona residents with college degrees and bring in more research dollars to stimulate the economy.

When the incentives were set up three years ago, then-Regents President Rick Myers said that many of the goals in the third year reflect three years' worth of work. He said that even with the potential bonuses, the compensations for Arizona’s university presidents are appropriate.

At the time Myers described some of the goals as "very aggressive" and said the presidents probably wouldn't achieve them all.

Current Regents Chairman Jay Heiler said the incentives allow the regents to chart a course, in partnership with the presidents, to achieve desired outcomes.

"We found it works well," he said.

The bonuses come as the universities are getting less state funding this year. The state cut university funding by $99 million this fiscal year in order to close a state budget deficit.

Regent Mark Killian said he has heard some criticism on the decision to award bonuses and defended the practice on Friday. He said he believes the presidents are underpaid for the great job they do running billion-dollar enterprises.

"We want to keep these people," he said. "We can't afford to lose these people,"

Each goal has a cash incentive tied to it, ranging from $10,000 to $20,000.

Crow met nearly all the goals, according to the regents, with ASU achieving more than $445 million in research expenditures for fiscal 2015, a new record. He missed goals for freshman retention and bachelor's degree production, according to the regents.

ASU's freshman retention rate of 84 percent — the percentage who return for their sophomore year — has improved over the years from 77 percent in 2006. But that improvement fell short of the 86 percent goal. If Crow had met the goal it would have been worth $10,000. Exceeding the goal would have netted another $10,000.

In Crow's report to the regents, he says the university met the retention goal for students who are Arizona residents but not for out-of-state students enrolled at ASU.

"We are concentrating further efforts on the non-resident students," he said in his report.

Crow said the university is preparing initiatives to increase student retention, including financial planning, improved academic advising and peer mentors for commuter students.

ASU narrowly missed the goal for bachelor's degrees, falling 58 short of reaching the 14,900 benchmark, which cost Crow $10,000.

Crow also earned incentives for the merger of the private Thunderbird School of Global Management into ASU and for rapidly evolving the university's online-only branch called ASU Online.

Hart met goals in student retention, bachelor's degrees and academic quality. She missed goals for research funding and the number of students transferring from community college.

NAU's Cheng, in her first year, was charged with developing a high-quality leadership team and a plan to increase success for Native American students. She met those goals, according to the regents.

The bonuses would bring Crow's total compensation for fiscal 2015 to around $1 million for that year, which includes $570,000 in base salary plus housing and car allowances and retirement benefits.

Last week, Crow and his wife, Sybil Francis, announced they are donating $1.2 million to the new public-service academy at the university. The ASU Public Service Academy began this semester and trains undergraduate students to serve in non-profits, civil service and the military.

Nationally, the typical public college president's compensation was $428,250 in fiscal 2014, according to the most recent survey available by The Chronicle of Higher Education. Two presidents made more than $1 million that year: Rodney Erickson of Pennsylvania State University at $1.4 million and R. Bowen Loftin at Texas A&M University at $1.1 million. Crow ranked No. 31in total compensation that year. Comparisons for fiscal 2015 are not yet available.

Compensation can be even more for presidents of private colleges. The Chronicle's most recent survey found 36 presidents earned at least $1 million at private schools in 2012.

The survey notes that the president wasn't the highest-paid person at more than half of the public universities surveyed. Athletic coaches or medical faculty were among the highest paid, according to the survey.

And, indeed, the same goes for Arizona's state universities.

Thursday, the regents voted on a $200,000 pay raise for ASU head football coach Todd Graham, which brings his annual salary to $3 million a year, not including bonuses.

ASU President Michael Crow

Total compensation: $874,600.

Base salary: $570,000.

Housing allowance: $70,000.

Car allowance: $10,000.

Additional compensation from ASU Foundation: $100,000.

Pension: $102,600.

Retirement: $22,000.

On Friday, the regents voted to give Crow a $30,000 base pay raise to $600,000 a year. He also will receive a performance bonus of $150,000 for meeting goals for the fiscal 2015 year. His contract also is extended an additional year, through June 20, 2020.

University of Arizona President Ann Weaver Hart

Total compensation: $638,700.

Base Salary: $475,000.

Pension: $85,500.

Retirement: $18,200.

Housing allowance: $50,000.

Car allowance: $10,000.

On Friday, the regents voted to give Hart a $25,000 base pay raise to $500,000 a year. She will also receive a performance bonus of up to $115,000 for meeting goals for fiscal 2015. The regents also voted to increase her annual housing allowance by $20,000 a year to make it similar to what the other university presidents' receive. Hart's contract also is extended an additional year, through June 30, 2018.

Northern Arizona University President Rita Cheng

Total compensation: $520,200.

Base Salary: $390,000.

Pension: $70,200.

Retirement: Not available.

Housing allowance: $50,000.

Car allowance: $10,000.

On Friday, the regents voted to give Cheng a $20,000 increase in housing allowance to $70,000 a year and awarded a performance bonus of $40,000 for the fiscal 2015 year.

Reach the reporter at 602-444-8072 or anne.ryman@arizonarepublic.com.