University Times

For the first time in the history of Pitt, a portion of the chancellor's salary has been tied to performance.

Acting for the full Board of Trustees, the board's compensation committee on Sept. 18 approved an annual base salary of $225,000 for Chancellor Mark Nordenberg.

The increase is retroactive to June 20, when Nordenberg was named Pitt's permanent chancellor. Nordenberg was appointed interim chancellor on Aug. 1, 1995, at a salary of $198,000.

Although Nordenberg's base salary is only $3,500 above the $221,500 that former Chancellor J. Dennis O'Connor was making when he resigned in Aug. 1995, Nordenberg could increase it by as much as $30,000 if the trustees determine that he has performed favorably in five areas outlined by the board in February.

Areas in which the board wants to see improvement are: undergraduate education; operational efficiency and fundraising. In addition, the trustees want Pitt to maintain its excellence in research, and explore opportunities for technology transfer that may add to the University's coffers while stimulating regional economic activity.

Board of Trustees chairperson J. Wray Connolly, who also serves as chairperson of the trustees' compensation committee, noted during the Sept. 18 meeting that such incentive or bonus clauses are common for executives in the business world. He said that the trustees were opting to make it part of the chancellor's compensation package because they want the University to operate more along the lines of a business.

"It's my hope that as we move forward at the University, more and more of the key positions will have part of their compensation tied to specific goals and objectives," Connolly said.

Even though Nordenberg, who has been at Pitt for 18 years, could earn as much as $255,000 this year, his salary still will be lower than those of Pittsburgh's two other university presidents. According to the public relations department of each university, Carnegie Mellon President Robert Mehrabian makes $285,000 per year, while Duquesne University President John Murray makes $319,000.

In addition to salary, Nordenberg's compensation package includes a car and driver, membership in the Duquesne Club and a house. Personal use of the car is reported as taxable income. While Nordenberg occupies the chancellor's residence, the University also will insure and maintain the home, provide first-floor furnishings, pay for utilities and provide household help. The chancellor will pay for all food for personal or family use.

Like other senior Pitt officers, Nordenberg also will receive:

* Group term life insurance in the amount of a $50,000 basic policy, plus three times his salary rounded to the next highest thousand. He may purchase additional term life insurance as long as the plan maximum of $1 million, excluding the $50,000 basic policy, is not exceeded.

* Accidental death and dismemberment insurance in the amount of a $50,000 basic policy, plus three times his salary rounded to the next highest thousand. He may purchase additional term life insurance as long as the plan maximum of $1 million, excluding the $50,000 basic policy, is not exceeded.

* Excess general liability insurance coverage of $1 million to protect him against claims incurred while conducting his official duties.

* Standard employee health insurance, plus an additional $5,000 for medical expenses not covered by the University's health insurance package.

* Financial counseling up to $1,500 per year for tax preparation and financial planning services. This benefit is reported as taxable income.

* Initiation fees and monthly dues for one social/athletic club (in addition to the Duquesne Club) where he can entertain prospective donors and business associates.

Retirement benefits for Nordenberg, and other senior officers, are the same as those offered all Pitt employees. The chancellor may contribute to the plan and have his contribution matched by the University according to the schedule specified in the plan.

During the Sept. 18 meeting, the compensation committee also set salaries for the provost, senior vice chancellor for Health Sciences, general counsel, senior vice president for Health Administration and secretary of the Board of Trustees.

Raises approved for those senior University officers are retroactive to July 1. The officers, the amount of their raises, their new salaries, length of service and salaries in 1994 (there were no salary increases for senior officers in 1995) are as follows:

* Senior Vice Chancellor for Health Sciences and Director of Western Psychiatric Institute and Clinic Thomas P. Detre's 1994 salary of $411,596 was increased 3.26 percent to $425,000. Detre has been at Pitt 22 years.

* Senior Vice Chancellor for Health Administration and President of the University of Pittsburgh Medical Center Jeffrey Romoff's 1994 salary of $328,435 was increased 3.37 percent to $339,500. Romoff has been at the University 22 years.

* Senior Vice Chancellor and Provost James Maher's 1994 salary of $160,000 was increased 4.69 percent to $167,500. Maher has worked at Pitt for 25 years.

* General Counsel Lewis Popper's 1994 salary of $128,082 was increased by 3.06 percent to $132,000. Popper has been at the University for 10 years.

* Secretary of the Board of Trustees Robert Dunkelman's 1994 salary of $115,794 was increased 3.63 percent to $120,000. Dunkelman has worked at Pitt for 37 years.

–Mike Sajna