The University Board of Regents voted unanimously at its monthly meeting yesterday afternoon to give University President Mary Sue Coleman a 3-percent salary increase.
The raise took effect Aug. 30, 2010. Coleman’s previous base salary was $553,500, while her total compensation package was $783,850. The 3-percent raise will result in a $16,605 increase in Coleman’s base salary, bringing it to $570,105.
Aside from her base salary, Coleman received a $100,000 retention bonus, $75,000 in deferred compensation, $24,500 in retirement pay and $30,850 in supplemental retirement pay in 2009.
Coleman also has an account for her business-related travel expenses and other operations. In addition, she is given a car and is provided full use of the President’s House at 815 South University Ave.
Coleman accepted a 4-percent raise in 2008, but requested in 2009 that the regents not give her a merit-based salary increase. In 2007, Coleman received a 3-percent raise, but decided to donate the money back to the University.
According to data published by The Chronicle of Higher Education last January, Coleman was the sixth-highest paid university president in the country in 2009.
The Board of Regents Personnel, Compensation and Governance Committee conducted a performance review before awarding this year’s salary raise.
At yesterday’s meeting, Regent Andrew Richner (R–Grosse Pointe Park) read the regents’ recommendation for the raise. Speaking on behalf of the regents, Richner said Coleman’s performance as well as market trends supported the decision to award the raise.
“The committee and the board, in addition to extending our personal gratitude for a job well done, is recommending a 3-percent increase in President Coleman’s salary effective Aug. 30, 2010,” Richner said. “I should note that this recommendation is well supported by the market and salary data the committee reviewed.”
Richner cited a laundry list of achievements Coleman accomplished throughout the past year — including growth in the University’s endowment, the successful renovation of Michigan Stadium and the smallest increase in tuition in the past two decades. In addition, Richner noted that Time magazine ranked Coleman as one of the 10 best college presidents in the country.
When Richner finished reading the statement, Regent S. Martin Taylor (D–Grosse Pointe Farms) turned to Coleman and asked, “What are you going to do next?”
After the regents approved the salary increase, Coleman thanked the board.
“Thank you very much,” she said. “I very much appreciate that. I love working with this team, and I appreciate the support because without every single part of it, it wouldn’t work.”
In an interview after the meeting, Regent Andrea Fischer Newman (R–Ann Arbor) explained why she voted for Coleman’s salary hike.
“I think it’s deserved,” Newman said. “She’s forgone an increase the past few years, and the University could (afford) it. I think it’s more a sign of recognition than it is about the money.”
Regent Julia Darlow (D–Ann Arbor) echoed Newman and Richner’s sentiment in an interview after the meeting, saying Coleman was very deserving of the pay raise.
“She didn’t take one this past year, and the 3 percent we thought was really a reasonable amount,” Darlow said. “I definitely support it.”
Coleman’s raise comes amid a 2.8-percent cut in state appropriations to public universities earlier this month. In addition, the regents voted in June to raise tuition by 1.5 percent for in-state students — the smallest tuition increase approved in over two decades. In addition, the regents voted in June to approve a 3-percent tuition increase for out-of-state students.
In addition to her official role at the University, Coleman serves on the Board of Directors for Johnson & Johnson and Meredith Corporation. The most recent compensation figures for her service on the two boards are from 2008.
In 2008, Coleman received $202,631 in total from Johnson & Johnson. Of that sum, approximately $95,000 was given in cash, nearly $100,000 was given in stock options and the rest came in the form of other compensation — like gifts to charity.
Coleman earned $144,067 for serving on Meredith Corporation’s board in 2008. Of that amount, $10,000 was given in cash, $42,000 was in stock options and the remaining $92,000 was given in option awards.