College Campuses Debate Administrators' Lofty Pay

Business Week reports:

The president of the University of Florida got a nearly $300,000 performance bonus in 2008. So did the head of Florida State University. Meanwhile, Governor Charlie Crist authorized double-digit tuition increases at all public universities in Florida, which has been hit hard by foreclosures and bankruptcies. But largesse for university presidents wasn't confined to the Sunshine State last year.

With the national $787 billion economic stimulus plan set to give higher education new federal assistance, the lofty compensation for some school presidents is drawing critical scrutiny. The Obama Administration's recent crackdown on executive pay at companies that accept bailout funds has resurrected a heated debate about whether college presidents earn too much. While the impact of the Wall Street salary cap is likely to be limited—pay consultants have already identified ways around many of the limits—the action signals a shift in the national attitude toward lavish compensation. Given an economic climate in which tuition is outpacing inflation, endowments are plummeting, and colleges are pleading for more government aid, the public may sour on seven-figure compensation for university presidents.

You'll never hear Barney Frank or Chris Dodd being bothered by the Big Education racket making too much money.