In August, Nextel announced that its chief executive would receive a pay raise of over $300,000, increasing his salary to $1 million.
In an effort to retain the chairman of the Philadelphia Stock Exchange, the company gave him a $300,000 bonus to his existing $600,000 salary, as well as a $600,000 loan, which is being forgiven at $200,000 a year.
When most people hear of these pay raises and perks for top executives, they are often a little exasperated — and sometimes rightfully so. It just doesn’t seem fair. However, we have much of the same, albeit on a somewhat smaller scale, right here at the University of Wisconsin.
Last year, the UW System president received a controversial $91,191 pay raise, while the state’s budget deficit, as well as our tuition bills, continued to grow. This position also receives an additional $45,000 fringe-benefits package.
Still, this is just the beginning of UW’s large over-expenditures in a time of fiscal shortfalls.
Additionally, the UW System president is given an extravagant second residence, called Brittingham House, where he or she can conduct official business or entertain elected officials, Regents and other UW administrators. According to the Legislative Fiscal Bureau, the cost to staff and maintain this building is $100,000 annually.
While I do not at all intend to provide remarks on the specific individuals who hold high positions in the University of Wisconsin, it is important for students and taxpayers to see just what their tuition and tax money is funding.
Yes, it is important to provide pay and benefits that will attract high-quality employees to the University, but at what point do we begin to lose sight of students’ best interests? The UW approved these increases while asking students to pay an additional $700 in tuition this year (for in-state students) and also to accept cuts in what our tuition money should primarily be used for: our classes.
When we registered for fall classes, these cuts were more than apparent. Many students went to register for a class only to find that it was no longer offered or that it had a significant size constraint.
Although it was frustrating for several students who couldn’t get into the classes they needed due to cuts in resources, many realized that our state was going through difficult economic times, which led to cuts for everyone — university students included. So it seems logical that we bear a certain amount of the cost of getting our state’s fiscal house back in order.
However, I cannot see how UW officials can justify certain extraneous expenditures by compromising students’ finances and the quality of their education.
Each UW chancellor gets free housing and/or over $600 in monthly allowance for “entertainment expenses.” This costs taxpayers $300,000 annually. This is in addition to the complimentary car that each chancellor receives. Although entertaining a wide variety of people is certainly part of a chancellor’s job, this aspect surely can be achieved in a much more cost-efficient manner.
It is interesting (and sometimes downright laughable) to look at some of the enormous expenditures of our state during the current budget crisis, and the UW has certainly proven to be a microcosm of this.
However, Katherine Lyall, the UW System president, made an announcement Saturday that might give us a little hope. While stating that UW would need to offer its faculty and staff a 4 percent pay increase annually to stay competitive with its peers, she has recommended a freeze on salaries this year with only a 1 percent increase next year (though this comes conveniently after her own large salary increase).
Students have already been doing their part, and it is worthy that this administration has begun to take action to help bear some of the burden of the multi-million dollar cut to the UW System. However, this recommendation must still be approved by the Board of Regents during its meetings tomorrow and Friday.
Top officials of any kind will always continue to receive good pay, benefits and perks. And while budgetary decisions are never easy ones to make, we can hope that our administrators will weigh students’ interests properly in their decision-making process.
Nicole Marklein ([email protected]) is a junior majoring in political science.
