The Morehead State University Board of Regents increased student tuition by 4.9 percent and the president's salary by 28 percent Thursday.
At its meeting Thursday, the board cited President Wayne Andrews for "exceptional leadership" and extended his contract through 2018.
"I am deeply gratified by the board's action. I am very proud to lead this institution," Andrews said. "This is a team effort. I have so many good people on our team that work hard for this university."
Andrews' base pay of $268,992 will increase over a two-year period to $344,728, the average salary for presidents of regional universities in Kentucky. He also will receive a universal life insurance policy.
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Eastern Kentucky University Michael Benson makes $400,000 and Western Kentucky University President Gary Ransdell makes $423,588.
The Morehead board also approved a $153.2 million operating budget for the 2014-15 academic year, which is up $9.2 million, or 6.4 percent, over the prior year. The budget includes a 4.9 percent tuition increase for undergraduate and graduate students, along with a 5 percent increase in the cost of student housing.
Morehead is in the second year of a three-year plan to raise all faculty and staff salaries. The plan will cost the school between $6 million and $7 million, said Beth Patrick, Morehead's chief financial officer.
A 2012 legislative report found that university presidential pay in Kentucky rose between 5 percent and 34 percent from 2006 to 2010, while faculty pay went up 7.7 percent. Tuition has increased every year since 2008.