Factors related to university presidents' pay: An examination of private colleges and universities

In this research, we used institutionalcharacteristics and market-related factors to predictuniversity president's pay, benefits, and totalcompensation at 190 private colleges and universities. Results showed that university CEOs' pay was relatedto the expenditures, type of institution, theexistence of professional schools, and academicreputation ranking, while their benefits package wasrelated to the expenditure, type of institution,reputation ranking, and undergraduate student'stuition. CEOs' total compensation (pay and benefitscombined) was related to the expenditures, type ofinstitution, reputation ranking, and tuition. Resultsof this study support the notion that agency theorycan be used to provide a theoretical framework topredict university CEOs' pay, benefits, and totalcompensation.

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