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CITY NEWS SERVICE: Lieu Praises CSU Salary Cap Decision
January 26, 2012
The California State University Board of Trustees votes to cap the salaries of new campus presidents after State Sen. Ted Lieu introduces legislation to limit compensation.
The California State University Board of Trustees voted today to cap the salaries of new campus presidents to 10 percent above the base pay of the previous president.
"Our continued goal is to recruit and compete for the best leadership possible, but also within articulated budget guidelines," said Herbert Carter, chairman of the CSU Board.
The university system has drawn criticism in the past for offering lucrative contracts to campus presidents, particularly in light of state budget cuts and rising tuition.
Sen. Ted Lieu, D-Redondo Beach, praised the changes as "significant reforms that will help rationalize CSU executive compensation decisions." Lieu had been particularly critical of the board's salary decisions, introducing legislation to limit compensation.
He said he took action when the board approved a salary for the new San Diego State University president that was $100,000 higher than his predecessor—at the same time it was approving a 12 percent tuition hike.
Carter said the new system will not only save money, but give job candidates a reasonable idea of what they can expect in terms of salary.
CSU is in the process of hiring presidents at five campuses -- Northridge, Fullerton, San Bernardino, San Francisco and the Maritime Academy.