U-M president’s compensation may hit $3M per year, base pay could set record

U-M awarded incoming president Kent Syverud a total annual compensation package of nearly $3 million
Syverud’s $2 million in base pay could set a record for public university presidents, an expert said
The pay package fits the complexity of the job to lead U-M, regents tell Bridge, with one saying Syverud ‘is worth every penny’

The University of Michigan has raised the bar again by awarding nearly $3 million annually in total compensation to its next leader, President-elect Kent Syverud, according to an expert who studies presidential contracts.

Syverud’s employment contract grants him a base salary of $2 million. With additional compensation, it increases his total package to nearly $3 million, said George Mason University Professor Emeritus James Finkelstein, who reviewed the contract at the request of Bridge Michigan.

His base pay potentially sets a record for public university presidents, Finkelstein added.

“The contract breaks new ground for a public university president,” Finkelstein, who has reviewed hundreds of university presidents’ contracts, said via email. “I’m certain that the presidents of other public flagship universities will look at this contract and want to renegotiate the terms of their agreements.”

U-M Board of Regents Chair Mark Bernstein pushed back, saying that Syverud’s compensation is “far from unprecedented.”

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“Additionally, the terms of this contract are consistent with the unrivaled complexity, scope and scale of the University of Michigan,” Bernstein said.

Michael Behm, co-chair of the board, agreed.

“The board has done extensive research into the contract, and we are very comfortable with it,” said Behm.

Regent Denise Ilitch added: “With the job responsibilities in today’s work and the complexity of the University of Michigan, President-elect Kent Syverud is worth every penny.”

Syverud, who was hired this week by the U-M to start July 1, has the potential to earn up to 30% of his $2 million base salary in a performance award if he meets metrics that were not outlined in the five-year employment contract released Monday by the university.

“When you add in the supplemental retirement benefits, he is essentially getting $3 million per year,” Finkelstein said.

U-M granted former President Santa Ono a new contract in 2024, two years into his tenure, that awarded him a base pay of $1.3 million. Finkelstein said at the time that with other compensation, such as bonuses and deferred compensation, it was the first agreement for a public university president that virtually guaranteed an annual compensation package of more than $2 million.

In May, Ono announced plans to step down from his post to potentially lead the University of Florida, where he might have earned $1.5 million in base pay as president along with other compensation that could have garnered him nearly $3 million annual compensation package. But he didn’t land the position.

Donald Landry, hired as the interim president of University of Florida, is earning a base salary of $2 million, reports show.

Meanwhile, a Chronicle of Higher Education report in September showed that University of Houston President Renu Khator in 2024 was the top-paid public university president among 180 chief executives pay and benefits. Her total compensation package was earning $3.1 million with a base pay of $1.06 million.

Finkelstein criticized U-M’s contract for Syverud.

“There is little in this contract that protects the interests of the university or the citizens of Michigan,” Finkelstein said. “From my perspective, the Regents have failed to carry out their fiduciary duties as elected officials … In the end, the ever escalating compensation for these public executives will cause more harm than good for our public universities.”

Bernstein said the board set benchmarks for Syverud’s compensation by looking at what fellow Big 10 schools Ohio State University and Penn State University pay their presidents.

“It would be a breach of our fiduciary duties to fail to recruit the very best candidate for this enormously important job,” Bernstein said. “That’s a responsibility that we take seriously.”

Finkelstein said that the regents’ perspective on how public dollars are spent to compensate leaders essentially is “confirming that this is a race.”

“That’s not good for anyone except the president.”

Tenure, perks, other details

Syverud comes to the University of Michigan from Syracuse University, where he has been chancellor and president since 2014. Syverud’s salary at Syracuse was $1,189.621 in fiscal 2024, with additional compensation of $571,273, according to a tax form filed by the university.

A man dressed in commencement regalia stands at a podium with a Syracuse University crest affixed to the front. — Syracuse University Chancellor and President Kent Syverud greets graduates at a ceremony in 2014. (AP Photo by Heather Ainsworth)

His U-M contract grants him tenure as a faculty member in a department agreed upon by the U-M and him. It requires him to live in the university president’s house on campus and grants him perks such as a car for professional and personal use and tickets to university-sponsored events.

It also provides him with a driver that will provide transportation and security.

“This is one of the few contracts I’ve seen that explicitly addresses a president’s personal security,” said Finkelstein. “I expect this is going to be a more common feature of presidential contracts in the future.”

At the end of his contract in 2031, Syverud is entitled to take a 12-month administrative leave during which U-M will compensate him at whatever his base salary is then.

After a one-year leave, Syverud may then return to the faculty but the terms are unusual, Finkelstein said.

“In addition to a sabbatical at his full presidential base pay, his faculty salary will be set at that rate for three additional years,” Finkelstein said. “I’ve only seen that once before. Typically, once a president returns to the faculty, their salary is reduced — most often to 3/4 of their former base or as the highest paid faculty member in their academic unit. But more worrisome is that he could resign the presidency after one day and get this benefit.”

Another shortcoming of the contract, Finkelstein said, is the “termination without cause” clause. It says: At the discretion of the Regents, the University may terminate your employment as President at any time without cause upon written notice to you. In the event of your termination without cause, you will be entitled to take an administrative leave and join the faculty in accordance with Section IV.C.

“This is just two sentences,” Finkelstein said. “I’ve never seen one so short or lacking any meaningful detail. I have no idea why either side would accept this language.”