President-designate George Ross starts his first year with $400,000

University President-designate George Ross’s starting salary will be $47,443 more than former president Michael Rao’s ending salary.

Ross, who begins his term March 1, has a base pay of $350,000 with a signing bonus of $50,000, compared to Rao’s ending salary of $302,557. Rao served from 2001-09 before leaving for the same position Virginia Commonwealth University.

The $350,000 salary should extend through Feb. 28, 2013, according to Ross’ contract. But the Board of Trustees will review his pay each year the with the possibility of being increased, not decreased.

Ross signed the contract Jan. 29, more than one month after the Board formally named him CMU’s next president in December.

By May 1 of each year, the Board and Ross will discuss reasonable performance goals for Ross to meet for the following fiscal year. If Ross achieves the goals by March 30 of the following year, Ross may earn a 20 percent performance bonus if approved by the Board that would be paid by June 30.

“If you do a market study on what presidents are making, it falls into that range,” said Steve Smith, director of Public Relations, regarding Ross’ pay.

Also, Rao’s contract included a few more benefits now packaged into the base salary in Ross’ contract, Smith said.

For example, Rao had a $100,000 retention bonus added into his contract, he said.

“Rao’s contract, in essence, was really worth a lot more,” Smith said. “(Ross’) is just packaged in a different way.”

Ross also will receive a retirement account that could receive up to $16,500 each year.

In the contract

Ross will live in a house provided by CMU with housekeeping, utilities, telephone and computer service included, according to the contract. Ross is able to spend up to $10,000 per year for new furnishings for public areas without Board approval.

The private section of the residence will be furnished and updated before Ross moves in, at his cost. Catering and special events of a business nature at the president’s home will be paid by CMU.

The university also will provide a new, full-size automobile for business and personal use, which will be replaced at reasonable intervals, according to the contract. Repairs, all fuel and insurance will be paid by the university.

Ross has the right to terminate the agreements of his contract without cause by giving the Board 120 days of advanced written notice, except for the six months prior to the expiration of the contract.

Also, if Ross is unable to perform the functions of the president because of an illness for more than three months, the Board has the right to terminate his contract.

He postponed his arrival to Alcorn State in 2007 because he was diagnosed with acute leukemia while serving as CMU’s vice president of Finance and Administrative Services. He was treated at University Hospital in Ann Arbor.