Dive Brief:
- Recent scandals at two Illinois colleges have prompted a flood of legislation attempting to limit executive compensation and perks at public institutions.
- Inside Higher Ed reports Gov. Bruce Rauner signed a bill last week that caps severance pay for community college presidents and limits contract lengths to four years — and the new regulation could one day extend to the state's four-year institutions, as well.
- Other proposed bills would require college and university boards to post presidential contracts for review two days before approving them, prevent nonsalary compensation from counting toward a president’s pension, and prohibit lame-duck boards from making contract decisions.
Dive Insight:
The proposed legislation in Illinois directly reflects public outcry over presidential benefits and severance deals at the College of DuPage and the University of Illinois at Urbana Champaign. Analysts expect the wave of legislation to hurt the state’s public colleges and universities in the competition for top talent. The scrutiny alone could convince a candidate to search for positions elsewhere.
While Illinois may be in the hot seat now, an awareness of such scrutiny is visible elsewhere. Gregory Fenves, the new president of the University of Texas at Austin, asked for a $250,000 pay cut from his contract offer because of public perception.