U.’s highest salaries lower than peers’

As a nonprofit institution, the University is required to file a Form 990 with the IRS that lists its 10 highest-paid employees.

The fiscal year 2009 filing — the most recent one on record — shows that two members of the Princeton University Investment Company receive the highest total salaries of all University employees, as was the case in prior years. PRINCO President Andrew Golden received a total income of $1,271,231 and received an additional $181,543 through other non-taxable benefits. Jonathan Erickson, PRINCO managing director, was the second highest-paid University official, with a total compensation of $1,084,400.

These salaries are significantly lower than those of employees with comparable positions at peer institutions. Harvard Management Company, which invests Harvard’s endowment, paid Head of Internal Management Stephen Blyth $8,443,253 during 2009. HMC paid its CEO Jane Mendillo a compensation package totaling $3,498,269.

President Shirley Tilghman was the third highest-paid employee in 2009-10, with a total compensation of $910,626. Of that, Tilghman received $125,768 in non-taxable benefits, including residence in the President’s Palmer House.

Two other PRINCO employees followed Tilghman on the list of highest-paid University employees. Provost Christopher Eisgruber ’83, the second highest-ranking University official, received $506,050 in 2009, making him the sixth highest-paid employee overall.

The additional benefits in some employees’ compensation packages could include “wages in lieu of pension, life insurance and two-year retirement plan pre-tax health benefits,” according to Daniel Sherman, a tax accountant in the University’s Office of Finance and Treasurer.

Several of the University’s key administrative posts’ total salaries were also in the $500,000 range.

Vice President for Finance Carolyn Ainslie received $424,381 in income in 2009-10 and $51,151 in benefits, while Executive Vice President Mark Burstein earned $495,798 and $50,701 in benefits.

Former Vice President of Campus Life Janet Smith Dickerson received a total compensation package of $309,285 in 2009-10. University Vice President and Secretary Robert Durkee ’69 received $350,712 with $47,121 in benefits.

Economics professor Jose Scheinkman was the highest-paid professor who does not also perform administrative duties at the University, receiving $416,616 in 2009-10 along with $48,995 in annual benefits.

Scheinkman briefly chaired the University of Chicago economics department before being recruited to Princeton in 1999.

Scheinkman’s salary package is about 2.5 times greater than the average University professor’s income of about $193,800, according to a recently published survey by the American Association of University Professors.

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As part of his recruitment package Scheinkman was also given a “recruitment loan” according to the University’s 990, for a total of $300,000. At the time, this loan had $165,000 left to be paid. The loan was a “retention agreement given to him as part of an agreement to stay at the University,” Sherman said.

“A lot of their needs depend on the circumstances on which we’re bringing them,” Assistant Vice President for Communications Lauren Ugorji said of how the University determines recruitment packages. By contrast, Ugorji said, faculty payment is based primarily on the individual professors and their needs.

According to Ugorji, the recruitment and compensation packages for University faculty are headed by Dean of the Faculty David Dobkin, while the recruitment of key officials is “another process entirely.”

Dobkin did not respond to a request for comment.

Ugorji explained that if, for example, the recruited professor needs lab space, the University incorporates the cost of the space into the recruitment package.

Ugorji said that faculty members can receive recruitment loans if they have agreed to teach at the University but cannot begin at the start of the semester because they can’t sell their home, for example.

“It gets very complicated because several faculty members are under contracts from other universities before they can be recruited,” Ugorji said.

The average 2011-12 salary, $193,800, for a University professor was the fifth-highest nationwide, according to the survey, with Harvard leading with an average salary of $198,000.

Director of the Center for Integrative Genomics David Botstein was the second highest-paid professor at the University, receiving a total income of $453,621.

The compensation for other University administrators was in the range of Scheinkman’s compensation package. Dean of the Graduate School William Russel received a total of $375,122, while former Dean of the College Nancy Malkiel received $349,810. Head of Facilities Michael McKay received a total of $348,648 in compensation.

In 2009-10, over 30 university presidents received over $1 million in compensation, according to The Chronicle of Higher Education.

The Form 990 sheet said that the University “provides home financing assistance on residential properties in the area surrounding the University to eligible employees, including officers, key and highest compensated employees.”

The largest mortgage assistance package was given to Botstein, who received a loan worth $1,350,000, which had a balance of $1,327,366 when the form was filed.

The mortgage program providing home financing assistance is generally “only given to big guys,” Sherman said.

“They are going to be changing it, and you have to be above a certain level to receive a loan from the University,” Sherman said.

Several other key University officials benefited from the program, including Durkee, Golden and Dobkin.