UPDATE: California State University (CSU) trustees just approved a controversial pay increase for top executives, totaling over $500,000, amid significant budget challenges and staff layoffs. The decision has ignited fierce backlash from faculty and staff who are grappling with a staggering $2.3 billion budget shortfall.
Trustees eliminated salary caps for CSU’s executive positions, including those of university presidents and the system’s chancellor, Mildred García. This policy shift, aimed at attracting competitive candidates, was backed by a pay analysis from consulting firm Segal. The analysis revealed that approximately 75% of similar institutions offer higher compensation to their executives.
Under the new compensation plan, CSU executives will benefit from performance-based pay incentives up to 15% of their base salaries, enhanced retirement plans, and increased housing allowances ranging from $60,000 to $80,000. However, with three presidential vacancies and two more retirements imminent, faculty argue this move comes at a time when they face “tsunamis” of layoffs and tuition hikes.
Margarita Berta-Ávila, president of the California Faculty Association, criticized the raises, drawing a parallel to “(President Donald) Trump’s construction of a new ballroom while working people were unable to provide for their families during the shutdown.” Faculty members stress the urgency of allocating funds to support educators and staff instead of increasing executive salaries.
In a pointed response, Dawn Addis, a Democratic Assemblymember representing San Luis Obispo, condemned the pay increase, urging university leaders to prioritize living wages for faculty and staff. She stated, “It is unbelievable that the CSU would use public funds to increase the pay of their most highly compensated executives,” while everyday workers struggle with the high cost of living in California.
The CSU administration defends the adjustments, stating that while the timing raises valid concerns, attracting capable leadership is critical for navigating challenging times. They assured that performance incentives will be funded through non-state resources, stating, “These changes will not affect tuition or student fees.”
In a bid to address budgetary concerns, CSU plans to utilize a one-time $144 million no-interest state loan to provide one-time bonuses to faculty and staff, translating to a 3% increase in total pay. This comes as the university system has already allocated over $770 million in salary increases over the past four years, despite executives receiving only a 7% increase in 2022.
As CSU navigates this turbulent period, the debate over executive compensation versus faculty support intensifies. The situation remains fluid, with faculty and staff expressing concerns about the long-term implications of these salary increases on the state of higher education in California.
What happens next? Faculty and staff are expected to continue voicing their concerns, as discussions surrounding budget allocations and executive pay will likely take center stage in upcoming board meetings. Stay tuned for more updates on this developing story.
