Trustees approve employment contract for incoming President Chiang

WEST LAFAYETTE, Ind. – The Purdue University Board of Trustees on Friday (Oct. 7) approved an employment contract for incoming President Mung Chiang, setting base pay, establishing an at-risk pay program based on annual performance, and providing retention incentives for the contract that runs for 6.5 years, from Jan. 1, 2023, through June 30, 2029.

Consistent with the at-risk pay program instituted for President Mitch Daniels 10 years ago, Chiang’s goals and metrics will be determined and revised each year and mutually agreed upon between him and the board.

Chiang’s base pay will be $420,000, with the potential to receive up to an additional $210,000 in at-risk pay based on how he performs against the goals and metrics.  

In lieu of at-risk pay for the balance of this fiscal year, Chiang will receive a guaranteed, pro-rated portion of the at-risk award opportunity, or $105,000, for performance in the initial six months of his term. Chiang is also eligible to receive a retention incentive payment each year he remains employed as Purdue’s president, with this amount starting at $150,000 and increasing by $50,000 increments each year through the end of the term. In addition, Chiang, who is the Roscoe H. George Distinguished Professor of Electrical and Computer Engineering, will have the opportunity to return to faculty upon the occurrence of certain termination events or if the agreement expires without renewal. Prior to doing so, Chiang will have, in most cases, the opportunity to take a sabbatical once his term as president concludes.      

The agreement contains other terms and conditions that are customary for contracts of this nature.

Chiang will begin his duties on Jan. 1, 2023.

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