Board justifies President’s salary

President Ronald J. Daniels was listed as the 30th highest-paid private college president on The Chronicle of Higher Education’s annual list of executive compensation at private colleges. The list of 2011 executive compensations was published in December just before the Board of Trustees voted to extend Daniels’ contract until 2019.

Daniels, who made $1,184,535 in 2011, was the seventh highest-paid private college president among institutions deemed similar based on statistics such as degrees offered, total expenditures and endowment size.

“One of the things that goes into the thought process [in deciding a university president’s salary] is the complexity of the institution, and Johns Hopkins is enormously complex,” Chairman of the Hopkins Board of Trustees Jeff Aronson said.

Daniels’ salary was determined by the Board of Trustees’ Compensation Committee, which Aronson chairs. After the committee deliberates, they present their decisions to the full board.

“We look at a variety of factors, [including] the competitive landscape and how [Daniels] is fulfilling the mission of the university,” Aronson said.

University of Chicago President Robert Zimmer was the highest paid university president on The Chronicle’s list overall and within the subgroup of institutions The Chronicle deemed as “similar” to Hopkins, earning $3,358,723 in total compensation in 2011. University of Pennsylvania President Amy Gutmann was second on both lists, earning $2,091,764.

Compared to Georgetown President John DeGioia and Cornell President David Skorton, who earned $875,317 and $865,331, Daniels earned significantly more.

The Chronicle’s list included several different aspects of compensation, including base salary and bonus pay, as well as insurance and other miscellaneous expenses.

The statistics also included deferred compensation, which is money set aside to be paid out in the future, typically upon retirement.

Deferred compensation is reported to the IRS twice — both in the year it is set aside and in the year it is paid out.

Daniels’ base salary in 2011 was $859,555, and he set aside $105,019 in deferred compensation. He received no bonus pay and $219,961 in nontaxable benefits.

Comparatively, Zimmer set aside $454,800 for deferred compensation and earned $200,000 in bonus pay.

Aronson said that the Board of Trustees is very pleased with Daniels’ job performance thus far. The Board unanimously voted last month to extend Daniels’ contract until 2019.

“His drive, intellect and vision are everything that Hopkins needs,” Aronson said. “He’s fulfilled all of his [promises] plus some.”