The annual survey of the Chronicle of Higher Education showed that Former President Henry Bienen’s total compensation dropped by $438,835 in the 2008 fiscal year.
But the drop in payment may be deceiving because Bienen’s salary from the previous fiscal year, 2007, was inflated by payments that he had deferred from previous years, according to an e-mail from Bienen.
Bienen’s base pay in the 2007 fiscal year was $903,760, a decrease from the 2006 figure of $1,342,595. Benefits also decreased from $399,965 to $26,330, bringing his total compensation down to $930,090 from $1,742,560 in 2006-07. The comparative size of the fiscal year 2007 salary, though, is due not to a decrease from that year’s salary to the next year’s, but rather to payments tacked on to it that had been deferred from previous years.
“My pay stayed somewhat the same [from fiscal year '07 to fiscal year '08],” Bienen wrote. “It was bigger the year before because I took a significant deferred payment. You need to be very careful with these figures because often presidents have deferred compensation and that compensation triggers in according to preset timing.”
Bienen did institute other measures to cut costs during fiscal year ‘08, though, and said he was conscious not to increase his salary during tough fiscal times.
“I would not have wanted to take big pay increases during this difficult time,” Bienen added.
Vice President of University Relations Al Cubbage said that according to documents submitted to the IRS, a deferred payment of $375,000 was agreed upon on in 2006. The payment was contingent upon Bienen working for the university at least through August 31, 2008.
The bonuses and deferred payments serve as encouragements for Presidents to stay at universities. The board of trustees sets the compensation and bonus figures of the President based on performance and pays at other peer institutions, Cubbage said.
The bonuses that were deferred will again result in a significant increase in compensation for the fiscal year 2009.
“Next year my pay will look like it goes up because once again deferred payments were made,” Bienen said. “But my actual pay stays nearly the same.”