'Fund-Rich' US Ivy League Universities Also Cut Presidents' Salaries Due to COVID-19 Impact

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As American universities face financial pressure due to the novel coronavirus disease (COVID-19) crisis, half of the Ivy League universities on the U.S. East Coast have either cut or frozen their presidents' salaries, Bloomberg reported on the 29th (local time).

According to the report, among the eight Ivy League universities, four have reduced their presidents' salaries. Bloomberg analyzed tax records and reported that the median salary of Ivy League presidents was $1.4 million as of 2018.

Harvard University President Larry Bacow agreed to a 25% pay cut this year. Considering that he received $570,000 for the first six months after taking office in July 2018, this amounts to a reduction of about $290,000 based on an annual salary of $1.14 million. Cornell University President Martha Pollack, Dartmouth College President Philip Hanlon, and Brown University President Christina Paxson also decided to cut their salaries by 20% each.

Some universities decided to freeze salaries. Columbia University President Lee Bollinger, University of Pennsylvania President Amy Gutmann, and Yale University President Peter Salovey will keep their salaries unchanged. In Columbia's case, not only the president's but also the deans' salaries will be frozen.

This measure is interpreted as indicating that Ivy League universities are under financial pressure due to the COVID-19 crisis. Despite possessing enormous endowments, the Ivy League universities are financially strained. In particular, the Harvard University endowment holds a staggering $40.9 billion, the largest university endowment in the world.

Earlier in April, Harvard and Princeton universities applied for funds allocated under the 'Economic Stimulus Package Act' but withdrew their applications following public criticism. Recently, U.S. President Donald Trump also issued warnings targeting universities, threatening to revoke various tax benefits.

This content was produced with the assistance of AI translation services.