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NAICU Statement on Executive Compensation at Private Colleges and Universities

NAICU Statement on Executive Compensation at Private Colleges and U...

November 14, 2010

Statement by David L. Warren, President, National Association of Independent Colleges and Universities, Issued Upon Distribution of the Chronicle of Higher Education's Annual Presidential Salary Survey

The salaries of executives at private colleges and universities reflect supply and demand. Searches for these positions at a significant number of independent institutions are highly competitive, and colleges must offer compensation packages that attract qualified leaders. Salaries are largely set through marketplace studies.

The job of college president has changed dramatically in the last 30 years, as have the demands. There is just a small pool of candidates who possess the skill set that is required, and are willing to take on the stressful 24/7 nature of the position.

Presidents must have fund-raising expertise, political savvy, solid management experience, a strong business sense, the ability to develop and deliver an educational vision for the institution, negotiating and mediating skills, and the ability to represent the college effectively to diverse stakeholders. Presidents must be capable of administrating organizations with thousands of employees and budgets reaching hundreds of millions of dollars at many larger institutions.

Private college leaders face increased pressure on many fronts: severe budget shortfalls brought on by the Great Recession, uncertainty about the long-term sustainability of higher education’s traditional financial model, calls for further government regulation, greater competition from public and for-profit institutions, and consumer concerns about growing sticker prices.

A recent study by the Council of Independent Colleges (CIC) illustrates the impact of the growing pressures of the job on the size of the pool of qualified candidates. CIC reports that less than one in four chief academic officers at private colleges plan to pursue a presidency.

Presidential salaries make up a very small percentage of overall campus budgets, and have virtually no impact on tuition increases. In fact, inflation-adjusted net tuition at nonprofit private colleges and universities actually declined by 11.2 percent in the past five years, according to the College Board.

###
 
Statement by David L. Warren, President, National Association of Independent Colleges and Universities, Issued Upon Distribution of the Chronicle of Higher Education's Annual Presidential Salary Survey

The salaries of executives at private colleges and universities reflect supply and demand. Searches for these positions at a significant number of independent institutions are highly competitive, and colleges must offer compensation packages that attract qualified leaders. Salaries are largely set through marketplace studies.

The job of college president has changed dramatically in the last 30 years, as have the demands. There is just a small pool of candidates who possess the skill set that is required, and are willing to take on the stressful 24/7 nature of the position.

Presidents must have fund-raising expertise, political savvy, solid management experience, a strong business sense, the ability to develop and deliver an educational vision for the institution, negotiating and mediating skills, and the ability to represent the college effectively to diverse stakeholders. Presidents must be capable of administrating organizations with thousands of employees and budgets reaching hundreds of millions of dollars at many larger institutions.

Private college leaders face increased pressure on many fronts: severe budget shortfalls brought on by the Great Recession, uncertainty about the long-term sustainability of higher education’s traditional financial model, calls for further government regulation, greater competition from public and for-profit institutions, and consumer concerns about growing sticker prices.

A recent study by the Council of Independent Colleges (CIC) illustrates the impact of the growing pressures of the job on the size of the pool of qualified candidates. CIC reports that less than one in four chief academic officers at private colleges plan to pursue a presidency.

Presidential salaries make up a very small percentage of overall campus budgets, and have virtually no impact on tuition increases. In fact, inflation-adjusted net tuition at nonprofit private colleges and universities actually declined by 11.2 percent in the past five years, according to the College Board.

###
 

November 14, 2010

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NAICU, CIC Unveil Website to Support Student Access, Success Efforts at Private Colleges

NAICU, CIC Unveil Website to Support Student Access, Success Effort...

September 23, 2010

FOR RELEASE: Thursday, Sept. 23           

Project Supports National Goal of Making U.S. First Again in College Completion

[Note to Editors: Quotes from key national policymakers are provided at the end of this release]

WASHINGTON, D.C., Sept. 23, 2010-The National Association of Independent Colleges and Universities (NAICU) and Council of Independent Colleges (CIC) unveiled a new website (http://www.buildingblocks2020.org/) today designed to highlight and support efforts by nonprofit private colleges and universities to increase the number of at-risk students they enroll, and to boost the retention and graduation rates of various student populations.

The website is the central component of Building Blocks to 2020, a national initiative organized by NAICU and CIC to help the nation meet President Obama's call to make the United States first in college completion by 2020. 

The website provides opportunities for campus professionals working on the front lines of student access, retention, and completion to learn from the experiences of other colleges, and to mine for practices and policies that fit their individual institutional missions and student populations. The website will also serve as an information resource for consumers and policymakers who are interested in what colleges are doing to not only reach out to students from diverse backgrounds, but boost their chances of earning a degree.  The number and diversity of institutions and programs represented on the website will grow, as NAICU continues to gather and post material from colleges and universities.

At the moment, the Building Blocks to 2020 website provides summaries of 535 existing or proposed programs at 250 nonprofit private colleges and universities.  Summaries of programs can be browsed alphabetically by institution, and by state, and are searchable by 34 topics

Up until about 10 years ago, the U.S. led the world in college completion.  However, as the percentage of young adults with degrees has surged in other developed nations, the U.S. now ranks 12th in the percentage of adults 25 to 34 with an associate's degree or higher, according to the College Board

"Nonprofit private colleges are committed to doing their part to make the U.S. first in the world in college completion again, and are redoubling their efforts to increase the number of graduates from all backgrounds," said NAICU President David L. Warren. "Given the productivity of the nonprofit private sector in graduating students - we enroll 19 percent of all students, but award 26 percent of all degrees - our institutions will be a crucial part of helping the nation reach the 2020 goal."

"For any group of students you want to follow-top students in high school, first-generation, low-income, high-income, or minority-nonprofit independent colleges have the best record of graduating students in timely fashion, thereby helping to fulfill President Obama's goal that many more Americans will have high-quality college degrees," said CIC President Richard Ekman.

In the next year, NAICU and CIC will ask all private colleges to report on their progress toward meeting self-identified goals in producing more college graduates; increasing graduation and/or retention rates; increasing success with at-risk students, and/or increasing graduates in areas of national need.  The two associations will issue a milestone report summarizing the sector's progress.  NAICU and CIC will release additional milestone reports periodically.

Quotes from Key National Policymakers

Senator Tom Harkin (D-IA)
Chairman - Senate Health, Education, Labor and Pensions Committee

"President Obama has made graduating more Americans from college a national priority, and I applaud NAICU and CIC for their work to make the United States first in the world in college completion by 2020. As we reach toward the president's goal, I will continue to take every step possible to ensure that a college education and the greater skills, higher salary and better employment opportunities that it brings remains within reach of every American student."

.............................................................................................

Senator Mike Enzi (R-WY)
Ranking Member - Senate Health, Education, Labor and Pensions Committee

"In a rapidly changing global economy, access to a college education is simply not enough. Increasing the competitiveness and prosperity of our workforce requires that our students complete their course of study and cross the finish line to success."

.............................................................................................

Congressman George Miller (D-CA)
Chairman - House of Representatives Education and Labor Committee

"Especially in this economy, it is clear students need all the resources we can give them to ensure they can complete college and graduate with the skills to compete in a global economy. These types of programs rightfully identify students' needs and supports them at every step along their path toward graduation. I applaud NAICU's efforts to help college students succeed while in school and after graduation."

.............................................................................................

Congressman John Kline (R-MN)
Ranking Member - House of Representatives Education and Labor Committee

"To keep America competitive, students from all backgrounds need the tools and support to succeed in postsecondary education. I applaud school-based initiatives to promote success among vulnerable populations, including those spearheaded by independent colleges and universities. Institutions of higher education know the students they serve, and they are well equipped to customize programs and services to help their students thrive."

About the National Association of Independent Colleges and Universities (NAICU)

NAICU is the premier advocacy association for the nation's private colleges and universities, with a membership of more than 1,000 private colleges and related associations. Member institutions include major research universities, church-related colleges, historically black colleges, traditional liberal arts and science institutions, women's colleges, two-year colleges, and schools of law, medicine, engineering, business, and other professions. Nationally, over three million students attend private colleges and universities. For more information, visit www.naicu.edu.

About the Council of Independent Colleges and Universities (CIC)

CIC is an association of more than 600 independent, liberal arts colleges and universities and higher education affiliates and organizations that work together to strengthen college and university leadership, sustain high-quality education, and enhance private higher education's contributions to society. To fulfill this mission, CIC provides its members with skills, tools, and knowledge that address aspects of leadership, financial management and performance, academic quality, and institutional visibility. For more information, visit http://www.cic.edu/.

###

CONTACTS:
Tony Pals, tony@naicu.edu
office: (202) 739-0474 cell: (202) 288-9333
Twitter: @naicutweets

Roland King, roland@naicu.edu
office: (202) 739-0475 cell: (202) 380-8172

FOR RELEASE: Thursday, Sept. 23           

Project Supports National Goal of Making U.S. First Again in College Completion

[Note to Editors: Quotes from key national policymakers are provided at the end of this release]

WASHINGTON, D.C., Sept. 23, 2010-The National Association of Independent Colleges and Universities (NAICU) and Council of Independent Colleges (CIC) unveiled a new website (http://www.buildingblocks2020.org/) today designed to highlight and support efforts by nonprofit private colleges and universities to increase the number of at-risk students they enroll, and to boost the retention and graduation rates of various student populations.

The website is the central component of Building Blocks to 2020, a national initiative organized by NAICU and CIC to help the nation meet President Obama's call to make the United States first in college completion by 2020. 

The website provides opportunities for campus professionals working on the front lines of student access, retention, and completion to learn from the experiences of other colleges, and to mine for practices and policies that fit their individual institutional missions and student populations. The website will also serve as an information resource for consumers and policymakers who are interested in what colleges are doing to not only reach out to students from diverse backgrounds, but boost their chances of earning a degree.  The number and diversity of institutions and programs represented on the website will grow, as NAICU continues to gather and post material from colleges and universities.

At the moment, the Building Blocks to 2020 website provides summaries of 535 existing or proposed programs at 250 nonprofit private colleges and universities.  Summaries of programs can be browsed alphabetically by institution, and by state, and are searchable by 34 topics

Up until about 10 years ago, the U.S. led the world in college completion.  However, as the percentage of young adults with degrees has surged in other developed nations, the U.S. now ranks 12th in the percentage of adults 25 to 34 with an associate's degree or higher, according to the College Board

"Nonprofit private colleges are committed to doing their part to make the U.S. first in the world in college completion again, and are redoubling their efforts to increase the number of graduates from all backgrounds," said NAICU President David L. Warren. "Given the productivity of the nonprofit private sector in graduating students - we enroll 19 percent of all students, but award 26 percent of all degrees - our institutions will be a crucial part of helping the nation reach the 2020 goal."

"For any group of students you want to follow-top students in high school, first-generation, low-income, high-income, or minority-nonprofit independent colleges have the best record of graduating students in timely fashion, thereby helping to fulfill President Obama's goal that many more Americans will have high-quality college degrees," said CIC President Richard Ekman.

In the next year, NAICU and CIC will ask all private colleges to report on their progress toward meeting self-identified goals in producing more college graduates; increasing graduation and/or retention rates; increasing success with at-risk students, and/or increasing graduates in areas of national need.  The two associations will issue a milestone report summarizing the sector's progress.  NAICU and CIC will release additional milestone reports periodically.

Quotes from Key National Policymakers

Senator Tom Harkin (D-IA)
Chairman - Senate Health, Education, Labor and Pensions Committee

"President Obama has made graduating more Americans from college a national priority, and I applaud NAICU and CIC for their work to make the United States first in the world in college completion by 2020. As we reach toward the president's goal, I will continue to take every step possible to ensure that a college education and the greater skills, higher salary and better employment opportunities that it brings remains within reach of every American student."

.............................................................................................

Senator Mike Enzi (R-WY)
Ranking Member - Senate Health, Education, Labor and Pensions Committee

"In a rapidly changing global economy, access to a college education is simply not enough. Increasing the competitiveness and prosperity of our workforce requires that our students complete their course of study and cross the finish line to success."

.............................................................................................

Congressman George Miller (D-CA)
Chairman - House of Representatives Education and Labor Committee

"Especially in this economy, it is clear students need all the resources we can give them to ensure they can complete college and graduate with the skills to compete in a global economy. These types of programs rightfully identify students' needs and supports them at every step along their path toward graduation. I applaud NAICU's efforts to help college students succeed while in school and after graduation."

.............................................................................................

Congressman John Kline (R-MN)
Ranking Member - House of Representatives Education and Labor Committee

"To keep America competitive, students from all backgrounds need the tools and support to succeed in postsecondary education. I applaud school-based initiatives to promote success among vulnerable populations, including those spearheaded by independent colleges and universities. Institutions of higher education know the students they serve, and they are well equipped to customize programs and services to help their students thrive."

About the National Association of Independent Colleges and Universities (NAICU)

NAICU is the premier advocacy association for the nation's private colleges and universities, with a membership of more than 1,000 private colleges and related associations. Member institutions include major research universities, church-related colleges, historically black colleges, traditional liberal arts and science institutions, women's colleges, two-year colleges, and schools of law, medicine, engineering, business, and other professions. Nationally, over three million students attend private colleges and universities. For more information, visit www.naicu.edu.

About the Council of Independent Colleges and Universities (CIC)

CIC is an association of more than 600 independent, liberal arts colleges and universities and higher education affiliates and organizations that work together to strengthen college and university leadership, sustain high-quality education, and enhance private higher education's contributions to society. To fulfill this mission, CIC provides its members with skills, tools, and knowledge that address aspects of leadership, financial management and performance, academic quality, and institutional visibility. For more information, visit http://www.cic.edu/.

###

CONTACTS:
Tony Pals, tony@naicu.edu
office: (202) 739-0474 cell: (202) 288-9333
Twitter: @naicutweets

Roland King, roland@naicu.edu
office: (202) 739-0475 cell: (202) 380-8172

September 23, 2010

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Proposed Rule Links Federal Student Aid to Loan Repayment Rates and Debt-to-Earnings Levels for Career College Graduates

Proposed Rule Links Federal Student Aid to Loan Repayment Rates and...

July 23, 2010

The Obama Administration released today its proposed regulations requiring for-profit career colleges to better prepare students for "gainful employment" or risk losing access to federal student aid. The proposed rules seek to protect students from taking on unsustainable debt they cannot repay and to protect taxpayers from high loan default rates.
The Obama Administration released today its proposed regulations requiring for-profit career colleges to better prepare students for "gainful employment" or risk losing access to federal student aid. The proposed rules seek to protect students from taking on unsustainable debt they cannot repay and to protect taxpayers from high loan default rates.

July 23, 2010

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Private College Tuition Increases 4.5 Percent for 2010-11; Institutional Student Aid Up 6.8 Percent

Private College Tuition Increases 4.5 Percent for 2010-11; Institut...

June 29, 2010

Published tuition and fees at private, nonprofit colleges and universities is increasing an average of 4.5 percent for the 2010-11 academic year, while private colleges are increasing institutional student aid by an average of 6.8 percent, according to the final results of a membership survey conducted by the National Association of Independent Colleges and Universities.
Published tuition and fees at private, nonprofit colleges and universities is increasing an average of 4.5 percent for the 2010-11 academic year, while private colleges are increasing institutional student aid by an average of 6.8 percent, according to the final results of a membership survey conducted by the National Association of Independent Colleges and Universities.

June 29, 2010

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NAICU, Council of Independent Colleges Launch College Access, Success Initiative

NAICU, Council of Independent Colleges Launch College Access, Succe...

February 13, 2010

FOR IMMEDIATE RELEASE
February 12, 2010                                                                                                                                 CONTACTS: 
NAICU - Roland King, roland@naicu.edu, 202-739-0475 (office), 202-380-8172 (cell)
CIC - Laura Wilcox, lwilcox@cic.nche.edu, 202-466-7230 (office)

NAICU and Council of Independent Colleges
Launch Major College Access, Success Initiative

WASHINGTON, D.C., Feb. 12 - The National Association of Independent Colleges and Universities (NAICU) and the Council of Independent Colleges (CIC) have announced a new effort, Building Blocks to 2020, that will highlight and support the efforts of private colleges and universities to raise college enrollment and graduation rates. The project was unveiled to the NAICU membership during its annual meeting in Washington, D.C.

Building Blocks to 2020 has two primary objectives. First, it gathers and communicates information on the considerable efforts in place or being planned by private colleges and universities to expand college-going, to increase graduation rates in areas of national need, and to enroll and support at-risk students, giving them the tools and skills they need to succeed in college. Second, the project disseminates successful practices so that private institutions can redouble their efforts to further increase college access and success.

"Our institutions want to be on record as endorsing and contributing to President Obama's 2020 goals," said NAICU president David L. Warren. "If you want to move the needle on college retention and completion, the wholehearted participation of America's private colleges and universities is essential."

Across all colleges and universities, only 24 percent of first-generation students succeed in earning a bachelor's degree, compared with 68 percent of students with parents holding a bachelor's degree. At private colleges, the completion rate for first-generation students is 61 percent.

"President Obama's intent to increase the college-going and college graduation rate is a worthy goal," said CIC president Richard Ekman. "Statistics already document the success of independent colleges and universities in retention and graduation. Our institutions will now build on that existing record as partners in reaching the President's goal."

A number of specific activities are already in place and others planned as Building Blocks to 2020 gets underway:

  • Survey of Effective Access/Success Programs Already in Place: An extensive array of programs for college access and success are already in place at private colleges nationally. However, there is no easy and comprehensive way to share information on these programs. Since late 2009, NAICU has been conducting an ongoing survey to identify innovative and successful efforts as a resource to other institutions.
  • Expanding Proven Programs: CIC has already secured more than $5 million in grants from the Walmart Foundation for 50 institutions to expand exemplary success programs for first-generation college students. For its part, NAICU will continue to advocate for a federally-funded competition open to all colleges, under the administration's proposed student loan reform bill, to expand successful initiatives.
  • Marking Progress: All private colleges will be encouraged to participate in the national effort by identifying goals appropriate to their missions. Institutions' progress toward those goals will then be periodically summarized in milepost reports that will look at success in producing more college graduates; increasing graduation or retention rates; increasing success with at-risk students, and/or increasing graduates in areas of national need.
  • Sharing Access/Success Programs: The milepost reports, as well as examples of particularly noteworthy existing initiatives, will be shared via a Building Blocks to 2020 Web site and through use of social media, such as YouTube, Facebook, Twitter, and blogs. Included will be interactive tools allowing mentors from institutions with established programs to guide others in developing their own success programs.

The on-line survey gathering access/success activities from participating colleges will remain open indefinitely. Examples and reports will be posted at www.naicu.edu/2020.


About the National Association of Independent Colleges and Universities (NAICU)

NAICU is the premier advocacy association for the nation's private colleges and universities, with a membership of more than 1,000 private colleges and related associations. Member institutions include major research universities, church-related colleges, historically black colleges, traditional liberal arts and science institutions, women's colleges, two-year colleges, and schools of law, medicine, engineering, business, and other professions. Nationally, over three million students attend private colleges and universities. For more information, visit www.naicu.edu.

About the Council of Independent Colleges and Universities (CIC)

The Council of Independent Colleges (CIC) is an association of more than 600 independent, liberal arts colleges and universities and higher education affiliates and organizations that work together to strengthen college and university leadership, sustain high-quality education, and enhance private higher education's contributions to society. To fulfill this mission, CIC provides its members with skills, tools, and knowledge that address aspects of leadership, financial management and performance, academic quality, and institutional visibility. For more information, visit www.cic.edu.

###

FOR IMMEDIATE RELEASE
February 12, 2010                                                                                                                                 CONTACTS: 
NAICU - Roland King, roland@naicu.edu, 202-739-0475 (office), 202-380-8172 (cell)
CIC - Laura Wilcox, lwilcox@cic.nche.edu, 202-466-7230 (office)

NAICU and Council of Independent Colleges
Launch Major College Access, Success Initiative

WASHINGTON, D.C., Feb. 12 - The National Association of Independent Colleges and Universities (NAICU) and the Council of Independent Colleges (CIC) have announced a new effort, Building Blocks to 2020, that will highlight and support the efforts of private colleges and universities to raise college enrollment and graduation rates. The project was unveiled to the NAICU membership during its annual meeting in Washington, D.C.

Building Blocks to 2020 has two primary objectives. First, it gathers and communicates information on the considerable efforts in place or being planned by private colleges and universities to expand college-going, to increase graduation rates in areas of national need, and to enroll and support at-risk students, giving them the tools and skills they need to succeed in college. Second, the project disseminates successful practices so that private institutions can redouble their efforts to further increase college access and success.

"Our institutions want to be on record as endorsing and contributing to President Obama's 2020 goals," said NAICU president David L. Warren. "If you want to move the needle on college retention and completion, the wholehearted participation of America's private colleges and universities is essential."

Across all colleges and universities, only 24 percent of first-generation students succeed in earning a bachelor's degree, compared with 68 percent of students with parents holding a bachelor's degree. At private colleges, the completion rate for first-generation students is 61 percent.

"President Obama's intent to increase the college-going and college graduation rate is a worthy goal," said CIC president Richard Ekman. "Statistics already document the success of independent colleges and universities in retention and graduation. Our institutions will now build on that existing record as partners in reaching the President's goal."

A number of specific activities are already in place and others planned as Building Blocks to 2020 gets underway:

  • Survey of Effective Access/Success Programs Already in Place: An extensive array of programs for college access and success are already in place at private colleges nationally. However, there is no easy and comprehensive way to share information on these programs. Since late 2009, NAICU has been conducting an ongoing survey to identify innovative and successful efforts as a resource to other institutions.
  • Expanding Proven Programs: CIC has already secured more than $5 million in grants from the Walmart Foundation for 50 institutions to expand exemplary success programs for first-generation college students. For its part, NAICU will continue to advocate for a federally-funded competition open to all colleges, under the administration's proposed student loan reform bill, to expand successful initiatives.
  • Marking Progress: All private colleges will be encouraged to participate in the national effort by identifying goals appropriate to their missions. Institutions' progress toward those goals will then be periodically summarized in milepost reports that will look at success in producing more college graduates; increasing graduation or retention rates; increasing success with at-risk students, and/or increasing graduates in areas of national need.
  • Sharing Access/Success Programs: The milepost reports, as well as examples of particularly noteworthy existing initiatives, will be shared via a Building Blocks to 2020 Web site and through use of social media, such as YouTube, Facebook, Twitter, and blogs. Included will be interactive tools allowing mentors from institutions with established programs to guide others in developing their own success programs.

The on-line survey gathering access/success activities from participating colleges will remain open indefinitely. Examples and reports will be posted at www.naicu.edu/2020.


About the National Association of Independent Colleges and Universities (NAICU)

NAICU is the premier advocacy association for the nation's private colleges and universities, with a membership of more than 1,000 private colleges and related associations. Member institutions include major research universities, church-related colleges, historically black colleges, traditional liberal arts and science institutions, women's colleges, two-year colleges, and schools of law, medicine, engineering, business, and other professions. Nationally, over three million students attend private colleges and universities. For more information, visit www.naicu.edu.

About the Council of Independent Colleges and Universities (CIC)

The Council of Independent Colleges (CIC) is an association of more than 600 independent, liberal arts colleges and universities and higher education affiliates and organizations that work together to strengthen college and university leadership, sustain high-quality education, and enhance private higher education's contributions to society. To fulfill this mission, CIC provides its members with skills, tools, and knowledge that address aspects of leadership, financial management and performance, academic quality, and institutional visibility. For more information, visit www.cic.edu.

###

February 13, 2010

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About the items posted on the NAICU site: News items, features, and opinion pieces posted on this site from sources outside NAICU do not necessarily reflect the position of the association or its members. Rather, this content reflects the diversity of issues and views that are shaping American higher education.

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