NEWS

MSU board approves flat salary for Simon

Board approves $50K scholarship in Simon's name

Christopher Behnan
Lansing State Journal
Lou Anna K. Simon

EAST LANSING - Michigan State University President Lou Anna K. Simon will continue to receive a $750,000 annual salary after asking for the eighth time in 10 years not to get a pay increase.

At Simon's request, the university's Compensation Committee had recommended not granting an increase following a positive evaluation in June of her performance. The MSU Board of Trustees approved keeping Simon's salary flat at a meeting this morning.

"I think about it in terms of what money could be used for," Simon said in an interview following the meeting. "It seemed to me there was better alternative use for money for the university than to give me more money.”

Her request to forgo a pay increase follows an ongoing debate with the board about whether her pay is competitive with presidents of other Big Ten universities. In 2014, Simon's compensation ranked sixth among the presidents of the 13 public universities in the Big Ten and 23rd among presidents of public universities nationwide.

In exchange for maintaining her current salary, Simon said she agreed to a "compromise," the creation of a new scholarship in honor of Simon and her husband, Roy. The Roy J. and Lou Anna K. Simon Scholarship  will be awarded to qualifying first-generation college students. Interest from a $50,000 endowment will pay for the annual awards.

Simon, who was the first to go to college in her family, said first-generation college students don't have the benefit of family members who can help guide them toward their academic goals and career dreams.

Trustee Mitch Lyons said Simon's leadership has been a catalyst for the university's recent successes in athletics and student achievement.

"It all flows downhill," Lyons said. "It's crazy how well everything is going."

Simon was given a $230,000 raise and $100,000 bonus in December of last year.

Before that time, she had declined to accept a raise since 2007. The board did give her retention bonuses - the one she received in 2013 was $125,000 - which she donated back to the university.

She is the second longest serving chief executive among the 14 Big Ten presidents.

Contact Christopher Behnan at (517) 377-1261 or cbehnan@lsj.com. Follow him on Twitter@LansingCB.