The about 65 to 75 acres is located at Crawford and Broomfield Roads. Only five to ten acres will be used for the new course, said David Burdette, vice president of Finance and Administrative Services.

The land was donated to CMU in December 2008 as a gift from United Investments. In an August 2009 story, Steve Smith, director of public Relations, told Central Michigan Life there were no plans to use the land for 20 to 30 years.

“After the land was donated another significant donor to the university had the idea for the ROTC for a field leadership reaction course,” Burdette said. “When we heard of this we got interested because we had no active plans for the land.”

Construction for the project will begin some time this spring and could cost anywhere from $50,000 to $80,000, said Lt. Col. Greg Thayer, Chair of the military science department. He said the project is expected from three to six months to construct.

The cost of building the project will be entirely funded by alumni donations, Thayer said. The management and running of the facilities will be an ROTC responsibility, he said.

“It’s a win-win situation,” Burdette said, “because we see something bigger than an ROTC course. We see it as something for the community. It will be a leadership course for students, corporations and businesses that want to go through it.”

The course itself will consist of about 12 stations that are situational awareness obstacles, Thayer said.

The course isn’t a physical obstacle course, but more of a team-building critical thinking exercise, he said.

“Each station has specific instructions on what needs to be accomplished,” Thayer said.  “Then you work as team.  The dynamic that comes up out of it is very interesting, to see how people start to work as a team.”

The first station is most trying, many of the times, Thayer said. This kind of exercise happens between an ROTC cadet’s junior and senior years to help with leadership development and develop proper team-building skills.

In the age of technology a lot of people spend their time indoors, and this gets people outside, Thayer said.

The course will continue to flourish and grow and be added to over the next 10 years, Burdette said.

David Burdette, vice president of Finance and Administrative Services, said in an email CMU will take several months to develop modifications to the approved 2001 Campus Facilities Master Plan, which was last officially updated in 2003. The plan before that was released in 1987.

The university has set aside funding for this planning process as part of its overall strategic planning process, Burdette said. He said this part of the planning process follows the current strategic planning process established by University President George Ross.

Claudia Douglass, interim vice provost of Academic Affairs, and Barrie Wilkes, associate vice president of Financial Services and Reporting, are co-chairs of the strategic planning process.

“This is just one part of that plan, but an important part,” Burdette said.

Burdette said CMU’s planning consultant is URS Corporation, an architectural planning and design firm based in Grand Rapids. He said URS last visited CMU during the 2008-09 academic year and the firm is very familiar with CMU’s physical plant and its potential needs.

URS will be invited back to CMU in November or December, Burdette told Central Michigan Life last week. He said this visit is an opportunity for students, faculty and staff to hear what URS recommends for the future of capital development at CMU.

URS helps the university understand demographics on a space per student, per classroom basis, Burdette said.

CMU needs to look five to 10 years into the future, but the planning process should actually look at least 20 years into the future to develop a comprehensive view of the university, Burdette said. He said infrastructure, parking, transportation and academic and residential capital needs, including enrollment forecasting, will be considered in the planning process.

Steve Lawrence, associate vice president of Facilities Management, said in an email CMU will work on the Campus Facilities Master Plan later this fall, so it is too soon to discuss possible developments. He said meetings will be held with various administrative and academic groups as well as the Student Government Association and Residence Hall Assembly to help develop the plan.

“The plan won’t focus on specific buildings, but rather on locations for future buildings as well as parking lot locations and traffic pattern changes whether vehicular, bicycle or pedestrian,” he said.

In a meeting last week, Burdette and Wilkes told CM Life that strategic planning has three parts: academic priority, auxiliary and buildings. The university will take the rest of the academic year to figure out when to do each project. Burdette said the master plan would not get underway until academic prioritization is complete.

CM Life reported Monday that Provost Gary Shapiro said he expects to release the results of academic prioritization next week. Academic prioritization began in November 2010, when Shapiro asked all deans to rank their degree programs on importance and funding needs, but the results have been delayed.

Shapiro said the release was delayed because he has been busy with other responsibilities regarding issues with budget, facilities and space.

About 20 people attended the forum, arranged by the Student Government Association, at Warriner Hall’s Plachta Auditorium, where Ross, Provost Gary Shapiro and David Burdette, vice president of Finance and Administration, answered questions.

“I’m going apologize on behalf of this administration and also on behalf of the faculty,” Ross said. “We hope to move past this, get a contract signed sooner than later and we hope to educate you.”

Ross, Shapiro and Burdette spent the hour answering questions about the financial situation of CMU.

Jenison graduate student Shawn Witte said he came early and wanted to ask about the contract, which expired on June 30.

“I was kind of curious why the contract didn’t get extended,” Witte said.

SGA President Vince Cavataio, Shelby Township senior, said it was difficult to alert students without being able to send a mass email, an ability he said Ross promised SGA will receive soon.

“To some extent, I’m disappointed that we didn’t get the message out as we should have,” Cavataio said. “But to another extent, I’m glad that this might be a sign that campus might be going back to normal.”

However, Hartland senior Kelly Schiess was disappointed.

“I think regardless of their stance on the issues, students should make a prerogative to know what’s happening at this university,” Schiess said. “I think it could have been better advertised.”

Schiess asked Ross about where the documents can be found. He said the fact-finding documents can be found at the CMU media channel and on CM Life’s website. He also said her complaint about the university’s lack of communication with students was valid, and promised he would be meeting with SGA more.

“I think we can always do a better job,” Ross said. “I hear the criticism — I accept it. We can do better.”

Schiess said she appreciated her questions being answered, finally allowing her to learn where the documents were.

“I think it’s important to think critically before taking a position on either side,” she said. “I did support the faculty at first, but at the same time, I didn’t have any opportunity to hear from the university on the issues.”

Cavataio said overall he was pleased with the evening. He encouraged students not to believe everything that either the FA or the university say, but to seek out the articles and documents for themselves.

As for Ross, Cavataio said he felt the public’s image of Ross over the past week has not been accurate.

“I think the regular image he’s got over the past couple of weeks … it’s not a good representative of him and what he’s done,” Cavataio said. “I respect him a great deal.”

Friday, Isabella County Judge Paul H. Chamberlain will decide the legality of the FA strike. FA members picketed during a strike Monday before being ordered to return to class by Isabella County Judge Mark Duthie for Chamberlain.

If Chamberlain rules in the FA’s favor, the university does not have a plan to implement.

“If the judge fails to continue the restraining order, we have choices to make,” Shapiro said.

The administration also does not yet have a plan to reimburse students or take other action in response to Monday’s classes the FA has already missed. About 60 percent of classes on campus are taught by FA members.

University President George Ross and David Burdette, vice president of Finance and Administrative Services, joined Shapiro to meet with about 50 student leaders on campus Thursday to take questions about regarding the FA.

Interim Dean of Students Tony Voisin and Associate Vice President of Financial Services and Reporting Barrie Wilkes were also present.

The event was organized by the Student Government Association, who selected and invited the leaders.

Ross said students should not have been subjected to the confusion they experienced on the first day of class.

“I apologize for both groups because we shouldn’t be where we are right now,” he said.

Shapiro said he valued the faculty extremely, and wanted them to have a contract.

“We have wonderful faculty members — I know these faculty members and take pride in their accomplishments,” Shapiro said.

The administrative members present agreed there was a great deal of misinformation being promoted, and Shapiro urged students to be “critical comsumers.”

“Don’t believe everything you hear,” he said.

Visit our landing page for more coverage on the FA contract conflict.

CMU hopes to prevail before Isabella County Judge Paul Chamberlain, who previously granted a temporary restraining order against the FA, ordering them back to work Tuesday after a one-day walkout. The hearing is scheduled to begin at 9 a.m.

In the court filing obtained by Central Michigan Life, the university claims the following: the strike will result in cancelation of classes if it continues, and all CMU students will suffer irreparable harm by being deprived of the opportunity to complete this semester.

CMU also claims international students will also suffer from irreparable harm since the cancelation of classes will result in CMU’s loss of certification from the Student/Exchange Visitor program. The loss would result in those students being unable to finish their studies at CMU or stay in the country.

CMU also claims it could lose $85,000,000 in student federal assistance, and hundreds of employees at CMU would be laid off.

Continuation of the strike could also have an effect on athletics, the university claims, stating CMU’s six intercollegiate athletic program and nearly 200 student athletes will not be abiding by the NCAA bylaws. This would put their seasons at risk.

The university cites Michigan’s Public Employment Relation Act and argues work stoppage is illegal, since employees of public universities are “public employees.”

Barry Goldman, a Michigan Employment Relations Commission-appointed fact finder has been assigned to the case.

Hearing dates for fact finding on Sept. 7, 9 and 13 have been set.

Several CMU employees filed in support of the CMU: Associate Vice Provost Robert Martin, senior John Minnema, Coordinator of International Students Tracy Nakajima, Director of Scholarships and Financial Aid Kirk Yats, Vice President for Finance and Administrative Services David Burdette, and Assistant Athletic Director for Compliance William Wilber.

CMU also claims FA members would suffer no harm if they return to work under the temporary restraining order injunction, since they would still receive the benefits and salary under their previous contract.

A relevant faculty source told CM Life he estimates the FA has a low chance of winning.

This is because the FA cannot claim irreparable harm if the injunction is extended, whereas CMU claimed five cases of irreparable harm, he said.

A local attorney agreed.

“It is highly unlikely that the judge will find, one way or the other, that the union is correct in their claim of an unfair labor practice,” he said.

However, he also said the judge may find MERC must decide through fact finding, instead of him.

It is uncertain if the hearing will include witnesses.

“The lawyers may want to call witnesses about whether the action is over economic issues or an unfair labor practice, but the judge may not have allocated enough time for calling witnesses,” the faculty source said.

The judge has issued an order of decorum warning all in attendance they will be removed from the courtroom if they are not quiet during the proceedings.

Visit our landing page for more coverage on the FA contract conflict.

(Infographic by Amelia Eramya/Page Designer)

Though the Central Michigan University Board of Trustees unanimously approved a 3.47 percent tuition rate increase, the lowest among main Michigan colleges, students are still voicing concern about current and future increases.

For 2011-2012 in-state undergraduate students, this means a cost of $358 per credit hour, $12 more than 2010-11, bringing the total tuition cost of a standard 30-credit-hour year to $10,740.

David Burdette, vice president of finance and administrative services, said the increase in tuition is a modest amount for students.

Although Burdette said this cut is slight, Troy sophomore Lindsey Siroonian said the numbers will add up, forcing students to add on another loan or an additional year of school.

“Any increase in tuition is not a good one especially since I am paying for college on my own,” Siroonian said. “Now I just hope it stays at this rate so I don’t have to go to school longer.”

Burdette could not speculate the final damage for students paying their own way through college because of the case-by-case nature.

“Even though it’s the lowest in Michigan, I still don’t think students should be having to pay even more for school,” said Grand Rapids sophomore Courtney Heeren.

The increase is the lowest among Michigan’s 15 public universities; CMU maintains the fourth-highest tuition statewide.

The state budget stated public universities that raised tuition by less than 7.1 percent would be rewarded with a cut of 15 percent instead of 22 percent in state appropriations. This equals a $12 million state cut for CMU.

Michigan State University and Wayne State University raised tuition above the state cap, but still did not receive the larger state cut because of a “legal loophole”.

The Detroit Free Press reported the loophole was the lack of a definition of “academic year” in the budget bill, according to several lawmakers during the legislative hearing on MSU’s tuition.

The state House appropriations higher education subcommittee may pass a supplemental bill that would take money from the schools.

“Our whole intent was to protect students from tuition increases like this,” State Rep. Bob Genetski, chairman of the subcommittee, told the Free Press.

To help offset the increase in tuition, CMU’s Board of Trustees approved a $3.8 million increase in financial aid for the 2011-2012 fiscal year, said Director of Public Relations Steve Smith.

About two-thirds of CMU undergraduate students receive some form of financial help. Students will still be able to cover most of the cost of their education through loans if need be, he said.

Smith said more than 2,100 returning students will not see an increase in their tuition because they are still covered by the CMU Promise and will continue to pay the same tuition rate they have been paying.

For help financially, students can apply for one of the 100 additional jobs on campus appropriated by President Ross during the 2010-2011 academic year.

As for university employees, Smith said through shared sacrifice, eight of the 10 employee groups have taken a freeze in wages beginning in the 2010-2011 fiscal year. President Ross also has indicated no layoffs are planned for the 2011-2012 fiscal year.

Students looking for additional help planning their future finances can contact the office of scholarships and financial aid.

During the board of trustees meeting last Thursday, university officials, specifically President George Ross and Vice President of Finance and Administrative Services David Burdette, touted the $429 million budget approved last week as a balanced triumph of solid fiscal sense.

In many ways it was, managing to freeze the wages for several employee groups for the second year in a row, including several unions, as well as incorporating several other cuts to weather reduced state funding.
At the same time, however, CMU is creating new, likely $200,000 a year or greater positions for the College of Medicine.
The university has hired two deans, one replacing Dr. Nehad El-Sawi as associate dean of medical education and another, temporary position created specifically for Dr. Joel Lanphear.
Lanphear interviewed along with Dr. Linda Perkowski for El-Sawi’s previous job. Perkowski got the job, her husband, W. Robert Flieschmann, got a faculty position and Lanphear had a position created on his behalf.
College of Medicine Dean Dr. Ernest Yoder said Lanphear will guide the college through Liaison Committee on Medical Education accreditation, something critical for CMED’s success.
CMU’s fiscal conservatism applies to its workers, but when it comes to the CMED, it is seemingly very ready to burn through piles of money. This is all going toward a project not yet generating any revenue and struggling to raise funds.
Since the April board meeting, little more than $1 million has been raised, as administrators continue to say they are inching toward the $25 million goal.
CMED’s annual salaries, before those of Perkowski, Fleischmann and Lanphear are factored in, total nearly $1.2 million annually.
When every other area on campus is seeing cuts, and every academic and service unit is undergoing prioritization to determine potential reductions, it is ludicrous for one still-developing element to get what looks more and more like a blank check.
The project has yet to demonstrate its true potential aside from buzzwords and lofty rhetoric. It all sounds like a risky bet for an otherwise conservative institution.
CMU delivered a balanced budget, and it deserves accolades for preparing so well for the hefty axe of state cuts to fall. A 3.47 percent tuition increase does not sound awful in any respect, even without its context as the state’s lowest hike.
However, the university’s funds ultimately come from the public — whether through tuition, state funding, charitable gifts or investments made from those monies. This demands fiscal responsibility across the board, even if it means delaying the completion of a certain pet project.
If the university would like a recommendation of where to start, this editorial board may have a certain place in mind.

The university expects $333,603,212 from the general fund in total revenue, which includes tuition dollars, state appropriations and other sources. The non-general fund, which includes other revenue such as parking tickets and several other sources, will generate about $95 million.

Tuition Revenue

Tuition dollars will account for $204,496,263, said David Burdette, vice president of Administration and Financial Services.

The number is $7 million higher than the previous fiscal year, which ended June 30. Tuition was increased about 3.5 percent, or $12 a credit hour from $346 to $358 per credit hour.

The 2,118 students still covered under the CMU Promise, a program which locked students in to a tuition rate for five years, will not experience the change.

All students who joined CMU in 2007-2008 when the Promise was active pay $304 per credit hour, or $9,120 for a 30-credit-hour year. Those not covered will pay $10,740 annually for the same hours.

Tuition increases at other universities have ranged from 3.65 percent at Eastern Michigan University to 7 percent at Oakland University.

Kathy Wilbur, vice president of Development and External Relations, said the tuition move will be helpful in dealing with state educational organizations, referencing a message she saw on Twitter from State Rep. Bob Genetski, R-Saugatuck.

Genetski, the chairman of the Higher Education subcommittee in the state House of Representatives, wrote in response to a Detroit Free Press article regarding the tuition news, “Great for students and state!”

Michigan State and Wayne State University have been accused of raising tuition above the 7.1 tuition restraint clause of the state budget. According to the Detroit News, MSU could lose $18.3 million in public funding, WSU could lose up to $12.8 million in public dollars.

Grand Valley State University was the last Michigan public university to reveal its rates when its board of trustees decided on a 6.9 percent increase on Friday.

Pay freezes

Four employee groups will see their wages frozen at least temporarily for a second year in a row; professional and administrative employees, senior officers, public broadcasting and office professionals will all have no pay increases for at least the beginning of FY 2011-12.

University President George Ross said the pay of these groups will be reviewed later this year.

“Given the continued uncertainty regarding the state appropriations funding and the economic climate, 2011 to 2012 salary adjustments will not be given at this time,” Ross said. “University-wide, budget-related employee furloughs and lay-offs will not occur in 2011-12.”

Two other employee groups have also seen pay freezes: the Police Officers Association of Michigan and American Federation of State, County and Municipal Employees.

The Graduate Student Union and Union of Teaching Faculty both received pay increases.

The university was in mediation with the Faculty Association, which represents tenure and tenure track faculty members at CMU, at the time, and fact finding with supervisory and technical employees.

Following Thursday’s meeting, the FA announced mediation was unsuccessful between the parties and the FA will also enter fact finding with the university.

The university is looking to find efficiencies by outsourcing some services, Burdette said, and 25 vacant full time equivalent positions have been eliminated.

He said CMU cut almost $3.8 million total from the following divisions in spring 2011 to prepare for losses in state funding: Central Administration, Academic Affairs, Finance and Administrative Services, Development and External Relations and the President’s Office.

“We have put together a plan of $3.7, almost $3.8 million of permanent reductions,” Burdette said.

Financial plan

Burdette said declining state appropriations are a major change in the new budget. The university has lost $12 million in state aid, or 15 percent from FY 2010-11.

Burdette highlighted the decline in state revenue since 2000-2001, when state aid accounted for 36 percent of revenue compared to FY 2011-12, where it accounts for 16 percent.

The university has also intentionally decreased student enrollment by 2.1 percent, University President George Ross said.

CMU will spend an additional $3.8 million on financial aid, $2.1 million on infastructure and $2.2 million in recruiting and hiring tenure-track faculty.

It currently spends $39.5 million on financial aid for various scholarships and grants; the additional $3.8 million will be spent on additional Board of Trustees Academic Scholarships, increased need-based aid and additional Study Abroad scholarships as well as others.

This means a cost of $358 per credit hour, $12 more than 2010-11, making the total tuition cost of a standard 30-credit-hour year $10,740.

CMU maintains the fourth-highest tuition statewide.

David Burdette, vice president of Finance and Administrative Services, said the university will generate $7 million from this increase, and total revenue from tuition for the fiscal year 2011-2012 will be $204,496,263.

Burdette said the budget strikes a balance between the burden of lost state appropriations, which has been the trend for at least a decade, and the burden of heightened costs from students.

“We do not (anticipate) a growth in state funding,” Burdette said.

The number is the lowest announced thus far by Michigan’s public universities, and is beneath the 7.1 percent cutoff which would result in a 23.3 percent reduction in state funding. Instead, the university will lose 15 percent, or about $12 million in state dollars.

The 2,118 students still covered under the CMU Promise, a program which locked students in to a tuition rate for five years, will not experience the change. All students who joined CMU in 2007-2008 when the Promise was active pay $304 per credit hour, or $9,120 for a 30-credit-hour year.

Before voting to approve the tuition increase, Board of Trustees chairwoman Sarah Opperman voiced some concerns with the proposal.

“We want to make sure we have the university we need and do what we have to for students,” she said. “At some point, you’ve done what you can do and costs are what they are.”

The tuition increases at other universities have ranged from 3.65 percent at Eastern Michigan University to 7 percent at Oakland University; Michigan State and Wayne State University have been accused of technically raising tuition above the 7.1 tuition restraint clause of the state budget.

According to the Detroit News, MSU could lose $18.3 million in public funding and WSU could lose up to $12.8 million.

CMU has intentionally implemented a 2.1 percent reduction in enrollment, said University President George Ross.

“This reduction was planned,” Ross said. “Our applications are up from last year but we got a little overwhelmed last fall and there were some questions about the quality (of the services we were providing).”

Trustee Brian Fannon supported the proposal, but raised concerns before the vote was taken.

“I have a concern with the tuition increase being so low, it looks good on paper,” Fannon said. “But can we really promise no reduction in services, quality and deferred maintenance?”

Ross said “the short answer is yes.”

The tuition increase allows the university to maintain current levels of operation while investing for the future, Burdette said.

“The increase is a modest strategic investment for faculty and students and infastructure,” he said.

The Faculty Association said Tuesday it would accept a pay freeze in its ongoing negotiations with the university if the cost of tuition was similarly maintained.

While administrative pay has seen an increase since 2005 at CMU, comparing the salary of former University President Michael Rao to University President George Ross is not fair, said David Burdette, vice president of Finance and Administrative Services.

“It’s not apples to apples,” he said.

Reportedly, Rao’s base salary was $232,760 in 2005. Ross’ base salary as president in 2010 was $350,000 — a 50-percent increase. Rao’s salary when he left CMU in 2009 was $302,557.

When Ross was previously employed in 2005 by the university in Burdette’s position, he made $159,529, as previously reported. In 2009, Burdette earned $209,090 — a 31 percent increase, according to the 2009 faculty salary list.

Thomas Storch, previous university provost, had a base salary of $164,430, according to previous reports. As interim provost, Gary Shapiro, earned $177,391, according to the faculty salary list. When he was promoted to provost in 2010, his salary became $253,000 — a 43 percent increase, as reported by CM Life.

With turnover, Burdette said the initial offer to a new employee needs to remain competitive, and the requirements for the position may have changed from one employee to the next.

Colbrin Wright, assistant professor of finance and law and a member of the Faculty Association, said the whole market needs to be examined when watching the trend of increasing salaries.

“It’s not so much about inflation or CMU,” Wright said. “This is market-based.”

Robert Martin, associate vice provost of Faculty and Personnel Services, said initial compensation offers to new faculty members are very competitive.

“When we are hiring somebody brand new, somebody who hasn’t worked for the university before, we would take stock of the discipline and standard national survey data, for faculty at the particular rank we would be hiring,” Martin said.

Burdette said the same process applies when hiring administrators. The president approves all salaries for senior officers after working with Human Resources to determine salary and benefits packages.

“I took Dr. Ross’s place … (and the) market affected my salary,” Burdette said. “When I had my (salary) conversation with Dr. Rao, I had no idea what (Ross) was earning.”

The university is dependent on the College and University Personnel Association, Martin said, because it publishes salary data for universities annually. He said the university compares itself with other public universities with overall budget size and student population similar to CMU’s.

“The combination of salary plus the benefit-package compensation is going to be as attractive as we can make it,” he said.

Barrie Wilkes, associate vice president of financial services and reporting and controller, said the university needs to remain competitive with Western Michigan University and other schools across the country.

“We’re not always successful,” Wilkes said. “Sometimes people do turn us down due to salary and benefit and compensation, so we have to try really hard.”

Burdette said no senior officers have volunteered to forgo their salaries or take cuts in light of Gov. Rick Snyder’s proposed budget. Up to 23.3 percent of state funds, or about $19 million, could be lost upon legislative approval.

Steve Smith, director of public relations, said administrative jobs are more demanding than most positions.

“They don’t just show up at 8 a.m. and go home at 5 (p.m.),” Smith said. “They have irregular, demanding schedules that require much more commitment. They’re here to lead the university. It’s not in their contract that they have to do that, it’s an understanding.”

With turnover, the university has not considered reducing the base salary offered to new employees.

“I don’t know that we’ve ever said, ‘We’ve got a budget cut, let’s reduce (salary offers),’” Martin said. “We’re cognizant always of the marketplace. Over time, salaries go up.”

Burdette said while the university does not implement pay cuts, several groups have taken pay freezes, including senior officers.

Presidential benefits

Ross’ salary is reviewed annually by the CMU Board of Trustees.

According to his contract, Ross is provided with a university-funded home with all housekeeping, utility and telephone costs provided for. His salary may be increased, but not decreased. He is allowed $10,000 annually to furnish the home, but anything purchased with that money becomes university property. The university also provides a car for Ross and is responsible for fuel, repair and insurance of that vehicle.

CMU also is responsible for social club dues “pertinent to the position of president and benefit CMU,” but Ross is responsible for taxes on those dues.

Ross’ salary is the second highest on campus. College of Medicine Founding Dean Dr. Ernest Yoder earns $385,000.

Burdette said Ross’ salary is not out of the ordinary.

Martin said the rationale for providing the president with a home and transportation is because “the president is the institutional face to the world.”

“The president can invite officials to a residence that properly reflects the institution’s interests,” he said. “For a fact, the residence afforded to the president of CMU is a very modest residence by comparison. Driving around in a Chrysler is a very modest portion of compensation for CMU’s president.”

In an interview with the Chronicle of Higher Education, Stephen Joel Trachtenberg, president emeritus and university professor of public service at George Washington University, said many factors contribute to a president’s salary and benefits: the size of the institution, overall experience of the president, if a school is private or public, performance in office and the market.

“The situation with presidential salaries and the compensation of senior administrative staff is similarly influenced by ‘exit options,’” Trachtenberg said in the article. “The CFO of a university could also work in private industry. The vice president of medical affairs could run a major city hospital or research institution.”