University Times

Pitt trustees have increased Chancellor Mark A. Nordenberg’s salary to $415,000 – a raise of 3.4 percent over his fiscal year 2004 salary.

In addition, the trustees’ compensation committee at its meeting yesterday approved raises ranging from 3.6 percent to 10 percent for six other Pitt senior officers, based on recommendations by Nordenberg.

Among the officers, Executive Vice Chancellor Jerome Cochran received a 3.8 percent increase to $288,500; B. Jean Ferketish, secretary to the Board of Trustees and assistant chancellor, received an increase of 4.3 percent ($162,000); Arthur S. Levine, senior vice chancellor for Health Sciences and dean of the School of Medicine, received a hike of 3.6 percent ($629,500); James V. Maher, senior vice chancellor and provost, received a 3.7 percent raise ($307,000); treasurer Amy K. Marsh’s salary increased by 10 percent ($198,000), and Arthur G. Ramicone, vice chancellor for budget and controller, received a 3.9 percent raise ($214,000).

The salaries are retroactive to July 1, the beginning of Pitt’s fiscal year.

In addition to his base salary, Nordenberg will receive five annual deferred retention incentive payments. The bonus program will give Nordenberg $75,000 a year through June 30, 2007, if he doesn’t leave his job or isn’t dismissed before then.

Maher, Cochran and Ramicone will receive deferred bonuses of $50,000 per year under the same conditions.

In making his recommendations to the compensation committee, Nordenberg said, “The increases that I am recommending are increases well within the range of what will have been typical increases for members of the University faculty and staff, with the one exception for the treasurer. That increase is a reflection of strong performance, of increased responsibilities as the size of our endowment has grown and as our investment strategies have changed and also the increasing competitive market for high-achieving chief investment officers.”

The Dec. 8 trustees compensation committee meeting was held via a conference call coordinated in 159 Cathedral of Learning, and “broadcast” by speakerphone to reporters in attendance. Media members were not permitted to address the trustees or the chancellor.

After the meeting, University spokesperson Robert Hill defended the chancellor’s remarks regarding the range of salary increases as being in line with the pay increase for faculty and staff, which for fiscal year 2005 was 3 percent (1.5 percent for salary maintenance, 1 percent for merit, markieting and equity adjustments, and 0.5 percent for senior administraotes to address market imbalances).

“The 3 percent was the amount by which the University increased the compensation budget,” Hill said. “Every year, substantial numbers of faculty and staff receive increments greater than the amount by which the overall pool’s percentage is increased, so that you have faculty, for example, who receive upwards of 10 percent salary increases, and staff as well. The average for the University settles down to 3 percent, but many people receive more than that.”

Hill added that the differences between the 3 percent overall employee salary pool and the increases of the officers’ salaries are “fractions of a percent, except where noted [i.e., the treasurer], and for the secretary, who has the lowest pay of the officers.”

Asked about the chancellor’s intentions to stay at his job through June 30, 2007, the duration of the deferred retention incentive plan, Hill said, “The chancellor has no plans beyond Pitt. He’s completely, fully devoted to his duties as chancellor of the University and he’s enjoying his role here.”

That applies to the other officers who participate in the bonus incentive program as well, he said.

In addition to salaries and deferred bonuses, Pitt senior officers also receive executive benefits that include: an automobile for personal and business use by the chancellor and by other officers as determined by the chancellor; personal liability insurance coverage of $5 million; group term life insurance and accidental death and dismemberment insurance policies, each in the amount of $50,000, plus three times the salary rounded up to the next higher thousand (for each policy, officers may buy additional insurance so long as the plan maximum of $1 million – excluding the $50,000 basic policy – is not exceeded); up to $5,000 per year for health care expenses not covered by basic insurance; a maximum of $5,000 per year for tax preparation and financial planning services, and initiation fees and monthly dues for selected clubs, as determined by the chancellor for the other administrators, and as determined by the chair of the trustees for the chancellor.

-Peter Hart