1. Compensation Trends in Higher Education

2. Rian Yaffe Senior Consultant Chairman & CEO Saundra Tracy Senior Consultant Immediate Past President, Alma College

3. Salary Trends Benefits & Perquisites Deferred Compensation Outlook for 2011/12

4. 27% of the Presidents who responded were women Executive Compensation Survey 2010/11 n= 193

6.  Median Base Salary 2009/10: $250,000  Median Base Salary 2010/11: $251,500  Median Increased: 0.6%  Median Increase for Same Incumbents: 2.3%  37% of presidents reported frozen salaries  Of those who received an increase, median increase was 4.2%

8.  Median Base Salary 2009/10: $150,000  Median Base Salary 2010/11: $151,500  Median Increased: 1.0%  Median Increase for Same Incumbents: 2.5%  23% of provosts reported frozen salaries  Of those who received an increase, median increase was 3.1%

9.  Median Base Salary 2009/10: $138,795  Median Base Salary 2010/11: $151,208  Median Increased: 8.2%  Median Increase for Same Incumbents: 3.6%  17.3% of CFOs reported frozen salaries  Of those who received an increase, median increase was 4.7% Yaffe & Co. Survey: Exec Comp, 2010/11

10. Since 2007, median salaries for Presidents have increased 12.3% Since 2007, median salaries for Provosts have increased 11.4% Since 2007, median salaries for CFOs have increased 11.7%

13. 2010/11 Survey Eligible: 32% Median of Max Opportunity: 20% Received: 64% Median Received: $25,000

15. 2010/11 Survey Eligible: 19% Median of Max Opportunity: 25% Received: 58% Median Received: $10,000

17. 2010/11 Survey Eligible: 19% Median of Max Opportunity: 12.5% Received: 72% Median Received: $8,000

18. Since 2007, median cash comp for Presidents have increased 13.1% Since 2007, median cash comp for Provosts have increased 11.0% Since 2007, median cash comp for CFOs have increased 13.3%

20. Median Age: 61

26.  Housing Provided: 56%  Allowance Provided: 22%  Median Monthly Allowance: $2,500

27.  Automobile Provided: 72%  Allowance Provided: 19%  Median Monthly Allowance: $643

29. NEW FORM 990  Revamped by IRS because they wanted more information from non-profits  Number of non-profits has exploded since the form was last updated in 1979  Concerned many non-profits are not living up to benefits of tax-exempt status  Helps IRS understand how an organization is structured and governed  IRS believes that forcing non-profits to disclose will get them in line: “A tax compliant organization is a well-governed organization” Steven Miller, IRS Commissioner

30.  Independent Board Committee  Appropriate Comparability Data  Process Documentation

31.  President Compensation & Benefits: approved by Executive Committee or Board  VP Compensation & Benefits: approved by Compensation Committee

32.  Intermediate Sanctions (either in addition to or instead of revocation of tax-exempt status)  Repayment of excess plus 25% excise tax for Executive  10% up to $20,000 jointly or severally for Board/ Committee Members

33. Outlook for 2011/12

34. Questions ?