Statement by Larry Lewellen

With the salaries of top executives at Ohio State having been the subject of recent news reports, questions arise about how they compare to faculty and staff salaries. I would like to offer some comparative statistics to put Ohio State’s executive compensation in context.

Top executives at Ohio State earn salaries that are in line with those at other large comparable public universities, particularly those that have associated academic medical centers. Ohio State’s executive salaries are only a few percent higher than the average among comparable public institutions. So, even though Ohio State is the second largest university in the country, it does not have the second highest executive salaries. (And, our executive salaries are much lower than salaries at private institutions.) It is vital, however, that Ohio State offer competitive salaries to administrators as well as faculty so we can attract and retain the top-quality people we need to remain a great university.

The average salary increase of executives is almost identical to that of all university employees. A year ago (July 2003) the average pay raise at Ohio State was 3.23%; the average pay raise among vice presidents was 3.26%. In July 2004 the average university increase is 3.5%; among vice presidents it is 3.55%. Promotions, equity increases and counter-offers are not included in these calculations for any group—administrators, faculty, or staff.

The President’s Cabinet, those administrators serving in a key advisory role, varies in size and makeup at the pleasure of the President. But the number of vice presidents at Ohio State has been 10 on average under the previous two presidents. With recent changes and the hiring of a new Senior Vice President for External Relations, there will be 10 vice presidents at Ohio State.

One of the priorities of Ohio State’s Academic Plan is to restore compensation to competitive levels. This initiative began making progress two years ago with average raises of 4.8 % for faculty and 4.6% for staff. Today faculty salaries have closed much of the gap with our benchmark peers, lagging only 1.7% below the average. After we examine the results of the FY05 salary increase, we expect faculty salaries to be even closer to the benchmark average.

Among Ohio State’s top executives Fred Sanfilippo, Senior Vice President for Health Sciences and Dean of the College of Medicine and Public Health, makes more than most other university employees (excluding athletic coaches). However, his level of compensation is typical of directors of large academic medical centers, and is not the highest. Ohio State’s Medical Center is one of the largest in the country and a major contributor to the central Ohio economy. Furthermore, Sanfilippo’s salary is paid mostly out of separate Medical Center funds, not the university’s general funds.