College Presidents Laughing All The Way to the Bank

A recent report published by the Chronicle of Higher Education, and featured in this week's Wall Street Journal, says that more than 30 university presidents around the U.S. are making more than $1million a year.  And the article refers to compensation packages from 2008, the latest data they had access to, or were willing to release publicly.  2008!?  I suppose that means some 50+ presidents are now making more than a cool mill. to run many of our esteemed institutions of higher learning.  My issue is that these pay increases come at a time when these same colleges and universities consistently raise the price of tuition and fees for the students whom they preside over.  Furthermore, their reasoning for the continued hike in tuition and fees is due to the overused, and (in my opinion) under-scrutinized statement of, "increased administrative expenses."  Something doesn't quite add up.  Patrick Callan, quoted in the article and president of the National Center for Public Policy and Higher Education, sums up my sentiments perfectly, "I don't begrudge anybody a decent standard of living for doing this work, but the only thing that's gone up faster than (college) presidential salaries is tuition and that's dragging down public confidence in higher education."  Amen Mr. Callan.  I realize this is merely a handful of colleges and universities from across the country, but it sends a terrible message and creates a precedent that other institutions of higher learning will no doubt follow, and probably already have.  Across the board, college tuition costs and fees are increasing at much faster rates than average inflation, or the CPI (Consumer Price Index).  Another WSJ article, from Oct. 28, 2010, highlights tuition costs at 4-year public universities across the U.S. rose 7.9% over last year.  7.9%!!  Again, the annualized CPI over the last 5 years has averaged about 2.4%, according to Forbes.

How can tuition prices rise at such a meteoric pace, yet the executives at many of these institutions are making more money than ever before?  Whats your take?