Penn State President Neeli Bendapudi gets 47% raise in wake of campus closure decision

Penn State President Neeli Bendapudi’s base salary will increase 47% in an effort, approved Friday by the university’s board of trustees, to keep her as president until 2032.

The trustees voted 34-1 to approve Bendapudi’s new compensation package, which increases her base salary from $950,000 to $1.4 million, an increase in pension from $250,000 to $525,000, and an increase in deferred compensation from $550,000 to $650,000.

It also includes a new performance-based incentive of up to 15% of the base salary.

Bendapudi’s term of employment runs until June 30, 2032, according to the package. She will receive an automatic 3.5% increase each year of the contract.

She has been the university’s president since 2022.

In all, Bendapudi’s current compensation stands at about $1.8 million and will rise to $2.8 million under the package.

“President Bendapudi has led the university to a balanced budget and more than $560 million through philanthropic commitments, while also continuing to strengthen the Penn State research enterprise and advance Penn State Health — all with a laser-sharp focus on the core academic mission of Penn State,” Board Chair David Kleppinger said in a statement.

“Overseeing such a vast academic, research, health and athletics enterprise through these changes has been no easy task — particularly with all of the challenges facing higher education as a whole — but her leadership is instrumental in positioning Penn State for future success and growth. With today’s vote, the board recognized her accomplishments and signaled its intent to work with and support her for years to come.”

Kleppinger said Bendapudi has brought about a cultural shift to Penn State, bringing more accountability, transparency and clarity to how the university allocates and manages resources.

“Throughout all of this, she has kept student success at the center of her vision for Penn State, allowing us to continue to strengthen the Penn State experience for all of our students,” he said.

But one Penn State trustee, Anthony Lubrano, did not think a raise was appropriate now.

“In light of the recent University announcements regarding campus closings, WPSU as well as the uncertainty regarding the 2025-26 State budget, I do not believe we should consider a compensation increase at this time,” Lubrano wrote in an email to the Trib.

A statement from Penn State said the board considers market data from the Big Ten Conference and “others in the president’s peer group” when it revises the president’s contract. It did not say who the others are in Bendapudi’s peer group. Data on current higher education market assessment and presidential compensation trends was done by Segal, a New York City-based consulting firm.

The statement also said Penn State “is one of the largest and most complex institutions of higher education in the country.”

Bendapudi’s tenure at Penn State hasn’t been without criticism. She has faced pushback from some faculty and students over a plan that closes seven branch campuses — including locations in New Kensington and Fayette — at the end of the Spring 2027 semester.

Proponents of the closure plan say the closures were necessary, citing financial losses, enrollment declines and the limited potential for growth at the schools.

Critics say the process was rushed and questioned the recommendation report.

And the university also is hiking tuition for students in the 2026-27 year.

Approved this summer, tuition for in-state undergraduate students at University Park will rise 2% next school year, a $205 increase per semester. Out-of-state students at University Park are charged with a 4% increase; and out-of-state students at branch campuses would see their tuition increase by 1%. There was no increase for in-state students attending a branch campus.

University officials say flat state funding is a contributor to that increase. Also Friday, trustees moved forward with requesting an additional $59.1 million in additional funding overall from the state. Overall, it is a $410.5 million appropriation request.

University officials say a $49 million boost to its 2026-27 general support appropriation would allow Penn State to freeze tuition for all undergraduate students, at all campuses, for the 2027-28 school year.

It also includes a $4 million increase for agricultural research and extension; a $5.3 million increase to Pennsylvania College of Technology; and a $766,000 increase to the Penn State Health and College of Medicine.