Trustees approve Daniels’ at-risk pay

WEST LAFAYETTE, Ind. — The Purdue University Board of Trustees on Thursday (Oct. 10) reviewed the 2018-19 performance evaluation for President Mitch Daniels and voted to approve his at-risk pay at 103 percent based on measures set out by trustees in December 2018.

A successful “Giant Leaps” campaign celebrating the university’s 150th anniversary, as well as continued strides in student success and fundraising and significant achievement in key university initiatives, all contributed to the final evaluation.

Daniels’ salary, one of few in higher education using an at-risk formula, is based on performance goals in four areas: student affordability (20 percent), student success (25 percent), fundraising (30 percent), and operations (25 percent). In the past five years, Daniels received 100 percent, 88 percent, 90 percent, 96 percent and 95 percent of his at-risk pay.

2019 saw continued improvement in four- and six-year graduation rates and the continued lowering of the average debt per undergraduate student to $3,559. In addition, Purdue wrapped up the Ever True campaign, the university’s largest fundraising initiative in its 150-year history, with more than $2.5 billion total raised, surpassing the $2.019 billion goal by more than 25 percent.

Significantly, trustees chair Mike Berghoff said, Purdue attracted new priority partnerships such as the Saab fighter jet plant announced in May in the Discovery Park District, and successfully launched new facilities for the College of Veterinary Medicine and the Gateway Complex for the College of Engineering and Purdue Polytechnic Institute.

Berghoff and Tom Spurgeon, chair of the board’s Compensation Committee, said Daniels earned 103 percent of his at-risk pay this year with 22 (out of 20) percent in student affordability measures, 23 (of 25) percent in student success measures, 32 (of 30) percent in fundraising and 26 (of 25) percent in operations.

Spurgeon said that Daniels reached 11 of the 14 metrics that make up his at-risk pay. He exceeded the goal in three of the metrics. In every case, Spurgeon said, trustees have raised the bar every year and the results continue to be better than previous years, far outpacing initial numbers in 2014.

In addition to his base pay of $430,500, which at his request was set lower than his predecessor’s, he will receive $221,707.50 in at-risk funds.

Source: Tom Spurgeon (trustees@purdue.edu)