UK president gets pay raise: Yearly salary will be more than $1 million
The University of Kentucky Board of Trustees approved a raise and contract extension for President Eli Capilouto on Tuesday, setting his base pay at more than $1 million.
Capilouto’s base salary will be increased to $1.035 million, effective January 1, 2022. The raise was approved but not unanimously, as some board members expressed concern about the raise creating a larger gap between the salaries of top administrators and those of UK faculty and staff.
Citing record graduation and retention rates, research funding and Capilouto’s COVID-19 response, Board of Trustees Chair Robert Vance said the raise for Capilouto helps ensure stability in the university’s leadership.
“The goal in this proposal, again, is stability and continuity of outstanding leadership as we embark on a new strategic plan, continue our path through and out of a global pandemic and work toward ambitious goals to grow and advance the state in critical areas of economic development, health care and developing a more skilled and diverse workforce,” Vance said at Tuesday’s meeting.
“The modifications proposed are consistent with what we have done before and, in my judgment, send a strong signal to the campus and Kentucky about the direction we have undertaken as an institution and our resolve to continue making substantial progress in advancing our campus and our state.”
Capilouto’s new base salary is the “average base pay of the two highest pay SEC public university presidents, plus 10%,” Vance said. According to the Chronicle of Higher Education executive compensation report, Capilouto was the highest paid public college executive in the country last year. With bonuses and other pay, Capilouto’s total compensation was more than $1.7 million in 2020, according to the report.
In 2020, Capilouto took a 10% pay cut, giving that money to an employee assistance fund in the midst of the pandemic. His current base salary is $838,334.
As part of the compensation and employment contract extension approved Tuesday, Capilouto’s salary will be adjusted each fiscal year “by the average salary increase percent for which other university employees are eligible.” His contact will also be extended to June 30, 2025, with one-year term extensions each July 1. That ensures there will be three years remaining on Capilouto’s contract on a rolling basis, Vance said.
Capilouto will also receive a retention payment of $125,000 on June 30, 2022, which will increase by $200,000 each year, according to the meeting materials.
As part of his contract, Capilouto will also have the option to step down as president and into a new position at UK for half his base salary and duties “to be negotiated,” according to materials from the board meeting.
Capilouto has been UK’s president since 2011.
“The results are incredible,” Vance said. “It is clear there is broad and deep support on the Board, across campus and the Commonwealth for this president.”
UK faculty trustees object to Capilouto raise
The vote was not unanimous, though it was still approved. Faculty trustees Lee Blonder and Hollie Swanson both voted against the pay increase, citing concerns about increasing the difference in compensation between top administrators and faculty and staff.
Referencing the deadly tornadoes in Western Kentucky this weekend, Blonder said a pay increase at this time “would send a poor message,” and is “likely to be perceived as exorbitant.”
“I think this is a very trying time for our state,” Blonder said. “Our students, faculty and staff have been struggling.”
Blonder and Swanson also referenced the Chronicle of Higher Education executive compensation report.
“I mean no disrespect to our president, but the ever-increasing, widening gap in compensation between our executives and faculty and staff is sending a negative message,” Swanson said.
Other board members spoke in favor of the pay increase.
Trustee E. Britt Brockman pointed to the campus improvements Capilouto has made in the last 10 years, and said the raise aligns Capilouto’s compensation with top university presidents. Trustee Elizabeth McCoy called Capilouto an “A-level leader” who has “a proven record.”
Speaking to the board after his compensation and contract was approved, Capilouto thanked them for their support.
“I would be totally remiss if I did not say that anything we do at the University of Kentucky is a collective effort,” Capilouto said. “And while I have the honor of serving as your president, I take no solace in thinking that I do this alone.”
This story was originally published December 14, 2021 at 4:39 PM.