TaxNewsFlash-Exempt Organizations

November 17, 2008
No. 2008-114

PRINTABLE VERSION

Senator Grassley Questions Increases in College Presidents’ Salaries, Invokes Transparency of Form 990 Reporting

Senate Finance Committee ranking member Chuck Grassley questioned whether increases in college presidents’ salaries, as reported in The Chronicle of Higher Education’s annual executive compensation survey published today, could be justified, and noted that because students, parents, and university boards need to have full information so they can decide for themselves, “[m]ore transparency of expenses through a new Form 990 schedule would at least help keep the public informed.”

According to a Finance Committee release, the College Board's recent survey indicates that tuition increases are likely next year and that the presidents' salary increases and tuition hikes regularly outpace inflation.

For public research universities, executive pay increased 7.6% (FY ‘07-’08).

Total compensation held steady for leaders of private research institutions, presidential pay at private master’s and bachelor’s institutions increased 6% (FY ’06-’07).

The salary gap is closing for public research university presidents and their private counterparts—those paid over $700,000 nearly doubled from the year before, from eight to 15.

Nearly one-third of presidents at public research institutions now make over $500,000.

The Finance Committee release focused on the fact that many public universities are raising their presidents' salaries.

For more information, contact Rick Speizman, National Partner-In-Charge, KPMG’s Exempt Organizations Tax Practice (ExoTax), at (202) 533-3084 or rspeizma@kpmg.com

To print a copy of this TaxNewsFlash article, go to: File>Print>Preferences or Properties>Landscape.

ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY KPMG TO BE USED, AND CANNOT BE USED, BY A CLIENT OR ANY OTHER PERSON OR ENTITY FOR THE PURPOSE OF (i) AVOIDING PENALTIES THAT MAY BE IMPOSED ON ANY TAXPAYER OR (ii) PROMOTING, MARKETING OR RECOMMENDING TO ANOTHER PARTY ANY MATTERS ADDRESSED HEREIN.

The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.

The KPMG logo and name are trademarks of KPMG International.

KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever.

The information contained in TaxNewsFlash-Exempt Organizations is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

Direct comments, including requests for subscriptions, to US-KPMGWNT@kpmg.com. For more information, contact KPMG’s Federal Tax Legislative and Regulatory Services Group at + 1 202.533.4366, 2001 M Street NW, Washington, DC 20036-3310.

To unsubscribe from TaxNewsFlash-Exempt Organizations, reply to US-KPMGWNT@kpmg.com and type ‘Exempt Organizations: Unsubscribe' in the subject line, then click on the SEND button.

Privacy | Legal