Purdue trustees approve pay raise proposal

October 15, 2010

WEST LAFAYETTE, Ind. - The Purdue University Board of Trustees on Friday (Oct. 15) approved a modest pay raise to help retain key faculty and staff.

The system-wide compensation plan calls for an increase in merit pay with additional funds allocated for one-time special merit pay for exceptional performance. It will be the first raise for any faculty and staff since July 1, 2008.

Board chairman Keith Krach said the raise is critical to the long-term success of the university and its students.

"A university is only as good as the people who work there, and we've seen ample evidence of the high-quality people who work at Purdue. It's essential to the university and the state that we recognize those who have made outstanding contributions," Krach said.

The merit increase will take effect Dec. 1 and will cost the West Lafayette campus $5 million this fiscal year. Annualized, this amounts to 1.5 percent of payroll expenditures, or $7.5 million. The funds will come from internal cost savings, including efficiencies in information technology, purchasing and energy conservation.

The special merit pay will be a one-time payment for exceptional performance, with funds coming from each campus's budget. The West Lafayette campus has allocated $1 million.

"We have been aggressive in cutting costs in response to the state's economy. At the same time, Purdue has continued to increase the quality of academic instruction and external funding for research," said Purdue President France A. Córdova. "The compensation increase allows us to reward the people who have worked hard to sustain Purdue through these challenging times."

Indiana State Sen. Luke Kenley, R-Noblesville, praised Purdue's approach. "I think Purdue did the right thing in addressing their internal costs first, and I expect that effort to continue. I also understand the need to retain key faculty and staff and the benefits they contribute to Indiana."

Most public universities in Indiana have increased salaries by 2 percent to 3 percent, as have many of the other institutions in the Big Ten.

Writer: Chris Sigurdson, 765-496-2644, sig@purdue.edu

Sources:   Keith Krach, 650-430-5533, keith@3points.org

                   France A. Córdova, president@purdue.edu