Penn State trustees approved a new compensation package for President Neeli Bendapudi that includes a $1 million increase in compensation. The package, finalized in a 34-1 vote by university trustees on Friday, raises Bendapudi’s compensation to roughly $2.8 million. Only trustee Anthony Lubrano voted against the measure, which passed without any board discussion.
According to the package’s terms, Bendapudi’s base salary will increase from $950,000 to $1.4 million with 3.5% increases each year, while her pension will jump from $250,000 to $525,000. The measure also included a performance-based incentive clause that could raise her base salary by 15% and an additional $95,000 increase to her deferred compensation, which rises to $650,000.
Under the terms of her previous contract, Bendapudi’s compensation was about $1.8 million. Under the new terms, Bendapudi’s contract now extends to 2032 after adding two years to her five-year rolling contract.
“I want to thank the hard work that went into this by the human resources committee and the board for the thoughtful review and engagement we’ve had in our meetings leading up to this,” board chair David Kleppinger said. “It’s an important process for discussion, and it’s clearly the hope of this board that President Bendapudi will be our leader for many years to come. We’re grateful for her strategic, courageous and compassionate leadership.”
Terms of Bendapudi’s newly approved compensation package were first shared in what was supposed to be a private executive session on Thursday. According to the Philadelphia Inquirer, the livestream intended to air trustee committee meetings was turned on early and shared audio but not video of the executive session. The stream shut down roughly 15 minutes into the meeting, the Inquirer said. During their executive session, university trustees said Bendapudi’s compensation ranked slightly below the median with respect to her peers, though it was unclear who comprised that group, the Inquirer reported. The new compensation package and raise will move her pay up to the 80th percentile.
Bendapudi ranked seventh in overall compensation among 180 public doctoral university presidents in 2024, according to the Chronicle of Higher Education’s latest survey.
According to discussions heard by the Inquirer during the executive session, a consultant presenting the compensation package said university presidents face increasing challenges in a “highly politicized” environment. The consultant cited increased turnover in university leadership across the country and significant decreases in the length of leadership tenures, the Inquirer reported.
During the executive session, Kleppinger said Bendapudi hopes to complete an institution-wide career services assessment for students, develop internal strategies for artificial intelligence, increase financial stewardship and unify academic and community clinical positions at Penn State Health into one group, among other initiatives. Kleppinger noted the president has not finalized those goals, according to the Inquirer.
Bendapudi enters her fourth year at Penn State’s helm as the university manages several challenges, including budget cuts and plans to close seven campuses across Pennsylvania. She has faced criticism from some faculty and had a vote of no confidence in her tabled at a faculty senate meeting in February. Some faculty members have also started working to form a union.
Read more at: https://www.centredaily.com/news/local/education/penn-state/article311947448.html#storylink=cpy
