The College’s Fiscal Year 2015 Form 990 is now available (pdf). Day 3 of a 5 day discussion.

We talked a bit about compensation on Day 1. Here are the details for 2015:

form990d

comp2

Again, the meaning of total compensation in the Form 990 has, I think, changed over the years. The requirements for who should be included has certainly evolved, with more and more employees getting caught up in the reporting net. One needs to be careful about mixing up permanent compensation with one-time payments tied to early retirement. (For example, both Eva Grudin and Michael Brown received large one-time payments associated with their retirements.) All that said:

1) Spending on administrators is out of control. Williams has, over the last 20 years, gone from being a faculty-run college to an administrator-run college. Although Adam Falk continues to talk a good game about “faculty governance,” who do you think has more power at Williams: Steve Klass making $367,000 and talking with the President almost every day or some random (full!) professor making $180,000 and never having shared a meal with Falk?

2) There are 7 people (Reed, Sousa, Puddester, Chilton, Crosby, Klass and Wakeman) whose jobs did not exist at Williams just ten years ago. How did Williams manage to be the #1 liberal arts college without someone doing these jobs? The answer, of course, is that other people (mostly members of the faculty!) did this work a decade ago and they were paid much less for it. The total annual compensation for this group is almost $4 million. Again, the best way to understand the actual behavior of Williams as an institution is to imagine a conspiracy of insiders seeking to maximize their own power and compensation.

3) The need to give one-off payments to encourage retirement is absurd, the fault of out-dated tenure arrangements and the (new) illegality of forced retirement. The best solution is for Williams, going forward, to award tenure as a 30-year (rather than life time) deal. From age 35 to 65, you have the same tenure as Williams professors have always had. But, at age 65, you become an at-will employee, just like the rest of us poor schlubs. Anyone who argues that such a change would materially impact Williams ability to hire high quality junior professors is clueless about the actual state of the academic job market.

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