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December 15, 2017

Latest News: Trustees Compensation Committee Approves Salary Increases for Senior Leadership

(Posted Dec. 20, 2017)

The compensation committee of Pitt’s Board of Trustees has approved the first raises for Chancellor Patrick D. Gallagher and seven top officers since 2014, based on a new policy governing executive officer pay that was also adopted at the Dec. 11 meeting.

The officers’ 2.25 percent raises were designed to align with the 2.25 percent salary pool approved for all faculty and staff in July 2017.

The new policy sets out how often the chancellor and officer salaries will be reviewed and the process for documenting and reporting compensation decisions. It includes authorization from the Board of Trustees to retain external professionals to provide competitive analysis, counsel and advise during the review process.

“It provides a way of addressing the annual increases in a way that is tied to the increases for the rest of the University,” said Gallagher. “The policy is an important step because it provides a visible and open framework for how the University addresses its executive compensation.”

The consulting firm Pay Governance was engaged by the committee to study salary levels for executive officers at 33 Association of American Universities peer institutions. It found that Pitt officer salaries “are competitive with the market,” reported Steve Pakela, the firm’s managing partner. However, adjusted salaries for the chancellor and for Provost Patricia E. Beeson are still below the median.

Effective for the 2018 calendar year, the salary increases are:

  • Patrick Gallagher, chancellor and chief executive officer, from $525,000 to $536,813
  • Patricia E. Beeson, provost and senior vice chancellor, from $420,000 to $429,450
  • Arthur S. Levine, senior vice chancellor for health sciences and John and Gertrude Petersen Dean, School of Medicine, from $847,500 to $866,569
  • Arthur G. Ramicone, senior vice chancellor and chief financial officer, from $400,000 to $409,000
  • Amy K. Marsh, chief investment officer and treasurer, from $447,500 to $457,569
  • Gregory A. Scott, senior vice chancellor for business and operations, from $325,000 to $332,313
  • Kathy W. Humphrey, senior vice chancellor for engagement and secretary of the board of trustees, from $395,000 to $403,888
  • Geovette E. Washington, senior vice chancellor and chief legal officer from $395,000 to $403,888

Under his contract, Gallagher is also eligible for deferred yearly retention incentive payments of $100,000, to be paid in a one-time lump sum on July 31, 2019, if he remains in his position until that time.

The committee determined that Rob A. Rutenbar, senior vice chancellor for research, was not eligible for a raise of his $400,000 salary because he only recently became an officer on July 1, 2017.

At the committee meeting, Gallagher reviewed the past year’s accomplishments of the University, from attracting “one of our most high-performing and diverse classes” to setting new records in patents and patent disclosures by Pitt-related startups.

“I am so impressed with his leadership,” concluded board chair Eva Tansky Blum. “Pat is leading the University into the future and that is really what is important for the University.”

Following the announcement, Andy Stephany, president of Staff Council, said in a statement: “I want to acknowledge the excellent work of the University officers over the past several years and appreciate their willingness to have passed on increases for themselves in uncertain financial times. Pitt must have excellent leadership to rank among the finest universities in the world; competitive compensation is crucial to retain and attract quality leaders.”

University Senate President Frank Wilson said he had not had time to consult with other senate officers, so could speak only for himself. He was pleased that salary increase rates for the chancellor and executive officers were commensurate with staff and faculty rates, and impressed that they had not received raises during the past several years.

“I feel good that during a tough period of time the top administrators did not take a salary increase.” However, he added, the vast majority of staff and faculty make far lower salaries, “and that’s a significant gap in pay.”


Marty Levine,, 412-758-4859


Filed under: Feature,Volume 50 Issue 9

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