To some Penn State faculty members, recent decisions from the university’s Board of Trustees have had a bit of a whiplash effect.

In May, trustees voted to close the New Kensington and Fayette campuses in two years — as well as five others — citing enrollment and financial declines and limited potential for growth. It was touted as a financial decision that would save money, allowing the university to focus on education.

But this month, university trustees increased President Neeli Bendapudi’s total compensation to $2.8 million, a $1 million or 56% increase from last year. That includes an increase in base salary from $950,000 to $1.4 million — a 47% increase — an increase in the pension component from $250,000 to $525,000 and an increase in deferred compensation from $550,000 to $650,000.

“At first look, and probably what the board of trustees would like us to believe, is that this raise is a testament to the university’s standing among the finest institutions in the country,” Penn State New Kensington professor Steve Evanchec said. “In reality, it is nothing more than an attempt by University Park to further distance themselves from these unwanted commonwealth campus locations.”

The decision to close campuses was grueling, and Bendapudi’s raise is “the proverbial twisting of the knife,” Evanchec said.

“The perception is that there is a severe disdain for what we are accomplishing here, at places like Penn State New Kensington or Fayette, from those making these decisions at University Park,” he said. “My question is, ‘Why?’ ”

Pleased with work

Responding to a request for comment for this story, Penn State’s media team pointed to a Sept. 12 statement released following the trustees’ 34-1 vote to approve Bendapudi’s compensation 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. “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.”

Penn State’s trustees review the presidential performance assessment annually, according to the university. The board reviewed Bendapudi’s evaluation report at its July meeting.

Anthony Lubrano, the lone trustee to oppose the raise, told TribLive he felt it was inappropriate amid uncertainty over the 2025-26 state budget and Penn State’s closure of seven campuses and WPSU. WPSU is a PBS and NPR member station based in State College.

From an outsider’s perspective, the board’s vote shows it is pleased with Bendapudi, said Julie Wollman, a University of Pennsylvania education professor.

“They feel they have a stable leader, who’s made tough decisions and who’s committed to the university,” Wollman said. “They’re signaling they want that person to stay, and they recognize and value their work.”

Anger surrounding branch campuses closing is a reasonable reaction to Bendapudi’s raise but isn’t directly relevant, Wollman said.

“That was a business decision. … The board probably is pleased she had the courage to make that decision,” Wollman said.

Compensation compared

In terms of base salaries, Bendapudi’s raise places her among the highest-paid college presidents in the Big Ten Conference. Just ahead of her is University of California President James Milliken. He receives $1.47 million annually, according to board documents. UCLA, a Big Ten university, is part of the University of California system.

The chancellor of UCLA is Julio Frenk, who earns $979,000 annually.

Following Bendapudi is University of Michigan President Santa Ono, who has a base salary of $1.3 million, as reported by Inside Higher Ed in 2024. Ohio State University President Walter Carter Jr. and Rutgers University President William F. Tate IV both make $1.1 million, according to Carter’s 2024 contract and NJ.com.

The presidential salaries for Northwestern University and the University of Southern California were not available because they are private institutions.

There is no national database listing 2025-26 presidential salaries.

While the increase is eye-popping, the reality is that trustees are trying to stay ahead within the higher education industry when it comes to presidential pay, Wollman said.

In the region, West Virginia University President Michael Benson’s base salary sits at $850,000 per year, according to WVU employment contracts, and when University of Pittsburgh Chancellor Joan Gabel was hired in 2023, the trustees’ compensation committee approved a pay package including a base salary of $950,000. This year, several of Pitt’s senior executives received 2.5% raises. Gabel, however, requested that her raise instead be added to the staff’s Compensation Modernization project, which aims to simplify the job catalog and pay grade system, as reported by the University Times.

“As part of a broader governance review, the University’s Board of Trustees earlier this year retained a third-party compensation consultant to review the Board’s practices relating to the compensation of university officers,” Jared Stonesifer, a Pitt spokesman, said in a statement.

Pitt officials did not make Gabel available for comment and declined to answer specific questions about executive compensation.

Gabel is not the only college executive to take this approach amid federal funding cuts and financial hardship for higher education institutes.

In Massachusetts, Harvard University President Alan Garber volunteered to take a 25% pay cut for fiscal year 2026 to help relieve pressure from the Trump administration’s nearly $3 billion in funding cuts, as reported by The Harvard Crimson.

Former Harvard University President Lawrence Bacow’s base salary was just over $1.3 million in 2022, according to The Chronicle of Higher Education.

The new contract containing Garber’s base salary has not been made public.

Garber and Harvard officials declined to speak with TribLive reporters.

Presidential pay across the board is difficult to defend, Wollman said.

On one hand, there are large disparities between what the average person on campus earns and what the president makes. On the other, being a college president is a 24/7 commitment, especially at a place like Penn State with numerous campuses, tens of thousands of students, a health system and a high-profile athletic department.

“It’s emotionally, cognitively and physically a very difficult job,” Wollman said.

‘Grotesque’

Evanchec doesn’t think the Bendapudi raise is having a significant impact on an already low level of morale on the Upper Burrell campus.

“We are showing ourselves to be a resilient group, and so are the other locations slated for closure,” he said. “We have a tremendous amount of dignity in what we do and how we can help our students and surrounding communities.”

Wollman noted the raise and backlash won’t affect Penn State’s brand in the long-term, but it could affect morale.

At any college, morale could quickly increase if there is clear communication justifying the decision as well as positive enrollment and financial numbers and faculty having the resources they need, she said.

“The trustees are working within that reality,” Wollman said. “Did they have to give that much of a raise? No, but they felt that was appropriate.”

Penn State Fayette chemistry professor Julio Palma believes Penn State is heading in a troubling direction. In February, he introduced a motion at the University Faculty Senate to bring a vote of no confidence in Bendapudi’s leadership. The motion was tabled that month and did not pass in April.

Bendapudi’s raise is indefensible, Palma said, and a symptom of a broader betrayal.

“A small group of wealthy individuals is determining the future of the only land-grant institution in Pennsylvania,” he said. “The message is clear: Those at the top will be rewarded, even as others are being erased.

“What makes it worse is the total disregard for even the optics. This is not just poor timing — it’s a grotesque display of priorities.”

Penn State isn’t the only university flirting with excessive compensation for its leadership, Evanchec said, but he does question the university’s timing.

“The timing of the increase in compensation for President Bendapudi, given the tumultuous time we are experiencing at the closing campus locations, lacks a severe amount of situational awareness,” he said. “I waver on whether it’s ignorance or apathy. I guess it’s probably a bit of both.”

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