MSU President M. Peter McPherson has the lowest base salary of any president in a public Big Ten school for 2003-04, but university officials say it's because he refuses to accept market-value pay.
McPherson receives $216,000 in base salary plus $69,100 in annual deferred pay given to him at a time decided by top administrators.
In comparison, McPherson's salary is only 45 percent of the University of Michigan's President Mary Sue Coleman, who tops the rankings in the Big Ten with a base salary of $475,000.
MSU Trustee David Porteous said he recognizes that McPherson is underpaid, but a high salary isn't a main concern for McPherson.
"The board was willing to put him in a range that would make him more competitive," Porteous said. "He felt very strongly that his request would be less."
The salary releases come on the heels of a Chronicle of Higher Education study that indicates there are 12 public university presidents who will earn more than $500,000 this academic year - bonuses included. The average pay for the 10 public university presidents in the Big Ten is more than $316,000.
McPherson has received moderate pay increases for the past three years, Porteous said, usually at a rate consistent with other university employees.
He said that two years ago, the board hired an independent firm to review what a justifiable salary and deferred compensation package for McPherson would be. There were plans from the board to increase McPherson's salary this summer, but he was away serving as the financial coordinator for the Office of Reconstruction and Humanitarian Assistance in Iraq.
Porteous said the board might soon try to increase McPherson's salary but doesn't expect him to comply with the board's request to equal the playing field between him and other Big Ten university presidents.
"I would expect the board in the near future to address the fact he hasn't received a pay increase in two years," he said.
"Knowing him like I do, I expect his generosity and stewardship is not going to change."
Over the past few years, McPherson has donated about $25,000 a year to the university endeavors, such as planting 2,000 trees on south campus and contributing to study abroad scholarships.
McPherson said he never has felt slighted by the university in terms of his pay.
"The university has paid me appropriately for my services as president and I'm very pleased with my time here," he said.
As part of his presidency, McPherson gets a car and a house.
But base salary might not tell the entire story as to who prospers in Big Ten presidencies.
Coleman's superior contractual bonuses would grant her an additional $875,000 if her tenure lasts five years. She also would receive $137,500 at that time in retirement pay.
With the bonus packages, the Chronicle of Higher Education found Mary Sue Coleman to be the highest paid public university president with an average salary of $677,500.
U-M spokeswoman Julie Peterson said universities must increase salaries in order to obtain the most qualified person.
"The competitive marketplace dictates what presidential salaries need to be to get the best leadership," she said. "It's part of retaining our excellence."
Peterson added that this academic year, tuition was raised by 6.5 percent for U-M students, and Coleman refused a salary increase along with some other top university administrators.
But university spokesman Terry Denbow said with a 9.9-percent tuition increase and a stagnant economy, he wouldn't expect McPherson to accept a substantial pay increase.
"He doesn't see it as a sacrifice," he said. "He does it for leadership and setting an example."
Denbow added that presidential pay would have to be re-assessed if McPherson were to retire.
"It would have to be raised significantly. I know what the market is."
