The University System of Maryland Board of Regents approved higher compensation for three system presidents as part of a new executive compensation system, also approved during Friday’s regents meeting.
Under the new system, devised by HR consultant Sibson Consulting, the system will aim to compensate university presidents at a 50th percentile average for compensation of presidents at similar universities.
Because of the new system, three presidents received raises. University of Maryland, College Park President Wallace Loh received an increase of $75,000. University of Maryland University College President Javier Miyares received a $50,000 raise. And Salisbury University President Janet Dudley-Eschbach received a $20,000 raise.
The three raises are retroactive to July 1.
The previous compensation packages were $619,889, $410,285 and $404,527, for Loh, Miyares and Dudley-Eschbach, respectively.
Before the raises Loh’s compensation was in the 43rd percentile of presidents at similar universities and Miyares’ was in the 37th percentile.
“Performance and accountability must be key,” said James Brady, chairman of the Board of Regents. “In accepting the Sibson report, approving the new compensation philosophy and, based on the data and new guidelines, adjusting the salaries of three high-performing presidents, the Board of Regents today further strengthened the tie between pay and performance for all USM leaders.”
The new compensation system adopted by the Board of Regents also ties pay to performance. That performance is determined by assessments of progress against specified annual goals. The compensation system will also consider the state’s financial condition, equity, retention and the market.
“USM strongly believes in a high-performance culture that is supported and modeled by its executives,” the new policy said. “Compensation must be linked to performance. It should also recognize the value of successful experience in its leaders, both for new leaders and for leaders who have sustained successful performance over a long period of time.”