Contact: University Relations (517) 355-2281, or hodack@msu.edu
9/22/2000
EAST LANSING, Mich. - The Michigan State University Board of Trustees today approved a compensation package for President Peter McPherson that includes a $25,000 "market adjustment" which McPherson said he will donate back to the university.
Under the resolution approved by the board at its meeting today, McPherson receives an increase of 3 percent - a total of $5,730 to his base salary. The board approved an additional $25,000, money the president said he would donate back to the university to help fund a campus beautification project.
The 3 percent increase, along with the bonus, brings McPherson's base salary to $216,000. When combined with deferred compensation of $60,800, his total compensation package is worth $276,800.
Board members said the market adjustment was necessary in order to bring McPherson's salary more in line with those of other Big Ten Conference presidents.
McPherson said he would donate the $25,000 bonus back to the university to help defray the costs of planting trees on the south side of campus, part of the MSU Campus Beautification Project.
"Joanne and I have discussed this matter extensively and we think this is the right thing to do," McPherson said. "I really didn't come here to make money on this job.
"Frankly, we don't have the job done yet as far as what other people need to receive in salary on this campus. Faculty salaries are improving, but we still need to do better."
McPherson called the beautification project, which calls for the planting of as many as 2,000 trees on south campus, a "worthy project."
"My hope is that this gift can be a stimulus for further activity," he said. "We would like in 30 or 40 years to have the same look and feel to the campus south of the river as we currently have north of it."