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November 19, 2015

Cal State to Stop Using Private Money to Up Presidents' Pay

Trustees of the California State University system, which has been dogged by controversies over campus leaders' compensation, approved a plan Wednesday to end the use of foundation funds to buttress presidential salaries, reports the Los Angeles Times.

By an 8-4 vote, the board maintained a 10 percent limit on salary hikes for newly hired presidents at Cal State institutions, which was adopted in 2012, but trustees removed a proviso for campus-affiliated nonprofits to fund increases.

The policy raised conflict-of-interest concerns because campus presidents often sit on the boards of such foundations, which typically plow donations into scholarships, faculty posts, and academic programs. The system has been buffeted for several years by faculty and student protests and scolding by political leaders over wages and raises for top administrators, particularly in years when universities have also increased tuition.