Hot Sam

Fri, Dec 25, 2009 : 9:50 a.m.

This is enough to bring a tear to a glass eye....

foreigner

Thu, Dec 24, 2009 : 9:22 a.m.

I agree with 'voiceofreason'. I wouldn't mind letting Lundberg take control of my portfolio.

voiceofreason

Wed, Dec 23, 2009 : 11:03 p.m.

snapshot, You are crazy if you don't think Lundberg could get any job on Wall Street he wanted. You are crazy if you don't think Pescovitz could run any other hospital system. These people would be making at least double these salaries at comparable jobs in the private sector. We are lucky to have them.

snapshot

Wed, Dec 23, 2009 : 6:42 p.m.

In4mation, I always hear folks making this "cometitive employment" comment and it has no validity. These public sector salary comparisons utilize what I call a "stepladder" approach. They keep increasing their salaries based upon what another institution is making. Then each institution takes its turn financially leapfrogging upon the other. There is no relevance to the private sector or the available positions for these individuals. It is my contention that they cannot go somewhere else and earn more money because there is no where else for them to go. There are only a finte number of these positions available and there exists many more candidates than positions.

zollar

Wed, Dec 23, 2009 : 6:40 p.m.

In a article yesterday about fire dept staff cuts. I suggested that annarbor.com investigate and post the salaries of city employees in administrative positions, In this article you show top salaries of UM personal.This IS directly related because the University does NOT have its own fire dept and relies on A.A.F.D. to Protect its billions of dollars of assents and 10's of thousands of employees and students.So let me thank you in advance (annarbor.com) for stepping up to the plate and posting that info. ( Down to 3 Fire Stations?)Now thats scary.

groland

Wed, Dec 23, 2009 : 5:22 p.m.

foreigner, actually the faculty are hired by the Department chairs, usually in consultation with the other faculty in a Dept. The top leaders rubber stamp the decisions and never actually meet or review any new hires. You are right in that their salaries are competitive with other institutions. That is in large part the problem. We operate in a culture of management that rewards the manager more than the actual producer of the goods or services that the company was geared towards. We also have a culture of CEO worship that assumes a high profile CEO is essential for any successful company. In the business world, this model has been taken to an extreme and has been in part discredited.

foreigner

Wed, Dec 23, 2009 : 4:58 p.m.

And who hires these amazing professors? Speaking of which, I believe there is a professor from EECS (or another Engineering program) that is involved in a court case. I'm not saying that every exec at U-M is God's gift to us, but they're earning competitive salaries. Nothing over-the-top.

groland

Wed, Dec 23, 2009 : 4:12 p.m.

I'm sorry, but all the posters who applaud the leadership at the U of M don't really have a clear idea of how the U works. In many cases the U is successful despite the leadership! The single most important factor are the individual faculty, we are the ones who write the grants and bring in the record amount of outside funding, we are the ones who staff the clinics and do patient service, we are the ones who write books, teach classes, and provide the academic prestige that moves us up or down in the US News rankings. The leadership has made many blunders over the years, including vastly expanding research space at a time when NIH funding was contracting, investing heavily in trends that have not panned out, (proteomics, metabalomics, etc.), investing heavily in new clinical facilities while our patient base is retracting and insurance coverage is scaling back. Individual faculty are the success story here, not the leadership, which is top heavy with assistant and associate Deans, Provosts, CEOs etc. Funny, the med School faculty support themselves with clinical or grant dollars and do not get raises, whereas the leaders who are already overpaid and are not generating outside income are given increases. I agree that many of these jobs could be done by others and don't require brain surgeons. Our latest dictate from the CEO, we must strive to be in the top 5 of Departments in our field. Gee, no mention of how we get there, just do it!

russellr

Wed, Dec 23, 2009 : 2:49 p.m.

Sorry you can't tell me there isn't other people that can do just as good a job for about half of what they are getting paid. Also the U of M is tax exempt. They do not pay taxes, so everything they build is not paying taxes. It's the little people paying taxes. Also look at tuition for crying out loud. Most of you people will find out down the road a College Degree isn't going to get you a job. This country is bankrupt we just keep printing more money thinking that is the solution. One day we will all wake up and wish we hadn't.

foreigner

Wed, Dec 23, 2009 : 2:21 p.m.

@Rork, you can look up everyone's base salary on Michigan Daily.

Top Cat

Wed, Dec 23, 2009 : 2:14 p.m.

We can rant and rave, express our anger or jealousy or whatever. My understanding is that what these folks are being paid is commensurate with what other comparable universities are paying for these positions. Do we want the best people or not? The U of M is a Michigan success story. Would we be happier if the U of M's condition were more similar to Chrysler's?

Rork Kuick

Wed, Dec 23, 2009 : 1:53 p.m.

I would like more details about: 1) faculty average increase is more than staff - what rationalizations were given where this happened? Does it make sense? 2) Medical school vs. others. News was that the biomedical researchers were kicking ass at getting federal grant money. 3) Transparency of what people are really compensated - not sure what is an what is not reflected in the numbers we get to see (I don't mean just the top 10 or so). We could use help with these since it's scary trying to shake answers from your superiors, or tell them their reporting formats thwart thorough analysis. I've said enough.

foreigner

Wed, Dec 23, 2009 : 12:54 p.m.

Some of these comments are simply uneducated and make me sad. I am one of the lowest paid employees at UMHS. My annual FTE salary is in the mid-20K's. I have a Master's degree. My annual performance reviews for the past 3 or 4 years will tell you that I've been one of the most productive employees in my department. Most custodians (no offense to the hard-working custodial staff here) make more than I do. I'm fairly certain my job has a significantly more responsibility when it comes to your care at UMHS than MANY people who are paid significantly more than what I earn. This year I was told there will be no pay increase for me because there is a hiring freeze, and my work load has increased significantly over the past few months. I see my manager on facebook most of the day, while I work like a dog and get micro-managed. I'm reading and typing this on my lunch break. Anyways, guess what this type of environment leads to? There is absolutely no incentive for me to work harder than the next person and help the 'company' perform better. And I'm pretty sure it would be the same for these folks, who are in much higher position and are charged with bigger responsibilities than me. They've put in years of hard work and paid their dues to get where they are today. I think its a well-deserved salary for the folks from UMHS who were listed, although the significant raise for the CIO - THIS YEAR - doesn't really make sense to me. The doctors and top-level executives have done a remarkable job to keep this hospital as one of nation's finest, and they deserve to get paid for their hard work. And my personal thanks to those who chose to decline a pay increase this year. I just wish that people at my level were also compensated significantly better than we are for our efforts. And "groland", you make an excellent point. I had the same thought...with such deep pockets, it would be nice if the university could use some of those funds to limit significant tuition increases.

groland

Wed, Dec 23, 2009 : 11:53 a.m.

Marzan, those Law school lecturers are not actually paid that amount. They have partial appointments, with some small percent effort. These numbers reflect a 12 month salary, but they are likely paid only for 1-3 months or even less, as guest lecturers.

Greenbean

Wed, Dec 23, 2009 : 11:50 a.m.

The stability of our jobs, and the future of the state's economy rest on the shoulders of these people. Wouldn't you agree that those things are worth an exceptional pay package?

groland

Wed, Dec 23, 2009 : 11:38 a.m.

Julianna, I know what the endowment is, I am actually supported by it! You are merely parroting the UM administrations official talking points. When I started here it was about 1.5B, fifteen years later it was 7B, before the latest drop. No matter what the invested funds are used for, they ought to enable us to keep tuition lower and to pay for some infrastructure. Instead, tuition keeps on rising and infrastructure is payed for by borrowed money, despite more than tripling the invested endowment during this time. That is my point.

ez12c

Wed, Dec 23, 2009 : 10:20 a.m.

Nobody should make more than $7.40 per hour in any business in any role. LOL.

A2G

Wed, Dec 23, 2009 : 9:22 a.m.

Well there is not much difference between Wall Street and State Street in terms of just compensation and leadership.

Jammo

Wed, Dec 23, 2009 : 9:02 a.m.

Mr. Rodriguez's BASE salary is 300K not 2.5M. The list is for Top 10 BASE salaries, not Top 10 Salaries.

cia.traugott@gmail.com

Wed, Dec 23, 2009 : 8:51 a.m.

In California everyone took 8% cuts.

marzan

Wed, Dec 23, 2009 : 7:56 a.m.

This website shows a different top 10, mostly dominated by law school professors. http://umsalary.info/numbers.php Lutz, Karl E$730,219.26 Rosenbaum, Mark D$709,920.00 Dyk, Sally Katzen$707,472.00 Hirschel, Alison El$696,048.00 Kelch, Robert P$684,047.00 Cassard, Richard Edward$568,425.78 Winograd, Barry$568,425.78 Kedar, Alexandre$568,425.60 Richman, William M$568,425.60 Connors, Timothy$568,425.60

John Agno

Wed, Dec 23, 2009 : 7:33 a.m.

It's unfortuate that UofM leadership doesn't recognize that the U.S. and its taxpayers are experiencing a deflationary economy and now is the time to cut back current salaries, bonuses, retirement contributions and raises.

trespass

Wed, Dec 23, 2009 : 4:40 a.m.

Mr. Fundberg's raise sticks out like a sore thumb. Dr. Pescovitz did not actually get a raise. She just got what she negotiated when she was hired. Therefore, Mr. Fundberg is the only top executive to get any raise. His raise was not only 18% but it also took him over what was earned by the President. I am sure every one of those top executives thinks they gave up a well deserved raise in order to send a message to their employees that they would not profit further during a time that they were asking for sacrifice from their employees. Why then shouldn't Mr. Fundberg send the same message? This is a carry over from the Wall Street mentality of entitlement. Why should tnis state employee not sacrifice in hard times like the rest of us and like the rest of the top executives?

jazzfan

Wed, Dec 23, 2009 : 1:12 a.m.

This is old news.. Pay increases for the University and Hospital staff take affect in September. University staff may have received an increase but the majority of staff at the Hospital got nothing. We were told to do more with less just like everyone else. I use to get pay for being on call but no longer. I have to give my time free to UMHS to stay employed.

gogmagog8

Wed, Dec 23, 2009 : 12:23 a.m.

To djm12652: I think you have it wrong! Your taxes are NOT floating the UM; the UM's success is floating the value of YOUR real estate...period. Not even up for argument. Please don't be naive.

Ryan Munson

Tue, Dec 22, 2009 : 11:09 p.m.

I often don't like to post about stories related on what may be considered touchy U-M subjects. This is public information and it is available to anyone who can look it up, but I think Mick misses the point of stating "What this article fails to report to us is whether or not any of these whizzes possess some intellect, innovative thinking or decision making that justifies these pay rates." There are super bright people that have amazing ideas to keep innovation alive. With regard to the example of parking, to my knowledge, it does not come free, no matter what position you have. I must say there is a lot of time commitment into a position as one listed above.

Mick52

Tue, Dec 22, 2009 : 10:21 p.m.

What this article fails to report to us is whether or not any of these whizzes possess some intellect, innovative thinking or decision making that justifies these pay rates. Or is it simply that this expansive compensation is simply a ripple effect that originated on Wall St. I sure would like to know what tremendous new ideas any one of these brought with them that specifically resulted in some spectacular result. I am retired from UM after 27 years and everyone I know and meet from my work "generation" are in agreement the the UM is being run as well as it was 15 to 10 years ago, when the emphasis was on Michigan and not on how much you can make. There has been huge expansion of exec/admin pay when the lower levels are being told there is no money for pay increases. I feel sorry for the people at the lower levels of the pay scales. Example: a low level employee has to the say exorbitant fee for parking as these high levels, some of whom probably get free parking. Well, the really rich can get gold permits and pay more but its still much easier for them to afford it. Also, this article gives us an example of why health care cost are so high.

brad

Tue, Dec 22, 2009 : 8:22 p.m.

@trespass. The financials end 6-30-09. The S&P500 fell about 30% in that 12 month period. The bonuses are probably calcuated for the calendar year. I'm not saying -23% is good, but if you can beat the market...

Brian Kuehn

Tue, Dec 22, 2009 : 7:18 p.m.

In comparison to many publicly-traded company CEO's and executives, these salaries are fairly moderate. Everyone on the list is highly trained and educated; they did not fall off a turnip truck and get these positions. The U of M, despite its faults, has not failed in its mission and they have not asked for a bailout. I reserve my anger for the captains of the financial world who destroyed a lot of our economic security while pulling down huge salaries and bonus payments.

trespass

Tue, Dec 22, 2009 : 7:07 p.m.

@Jake C There are lies, damn lies and statistics. If you look at the UM 2009 financial statement, the 12 month return on the portfolio is a loss of 23%. The three year return is 0.8%. Mr Fundberg's 5 and 10 year averages rests on a 26% return in FY 2007 when everyone was doing well. I am sure that he was already rewarded for those long ago returns. Why is he getting an 18% raise in a year that he lost 23% of $7.6 billion. He lost not only every penny that was donated to UM this year but an additional $1.6 billion. Why do fund managers always talk about how well they did this year in good times but when they lose money they want to talk about their 5 and 10 year averages to justify getting raises in good years and bad

Juliana Keeping

Tue, Dec 22, 2009 : 6:07 p.m.

Groland, The endowment is a collection of 7,000 separate funds that today stands at about $6 billion. Funds are designated to specific areas, such as professorships, educational programs or scholarships. Donated funds aren't spent, but are invested to provide annual payouts.

brad

Tue, Dec 22, 2009 : 5:55 p.m.

"it was the spring of hope, it was the winter of despair; we had everything before us, we had nothing before us;"

TruBlue

Tue, Dec 22, 2009 : 5:44 p.m.

Lundberg earns his salary which is tied to investment earners for the U. I don't want some schlep doing his job. I think the people at the hospital should be excluded from this list since it is really a separate, for profit entity. As far as these deans and Mary Sue, they make too much already.

voiceofreason

Tue, Dec 22, 2009 : 5:36 p.m.

djm12652, You did read my post, didn't you? The increases in pay are because these people increased the value/profit for their respective units. The Medical System and Endowment Portfolio are not operated with money from your taxes. I wish people would gain a basic understanding of business management before being able to complain about compensation.

Jake C

Tue, Dec 22, 2009 : 5:31 p.m.

Looking at job performance, I have to admit that the University's Chief Investment Officer probably had a more stressful year than everyone else on this list. It's not like Mary Coleman's job was all that impacted by the economic crisis, or the Deans of the Medical, Business, or Law Schools.. But the CIO was in charge of making sure the University's entire multi-billion dollar endowment didn't go up in smoke when the stock market (and the rest of the economy) was going to hell in a handbasket. That's a skill-set that could quite probably make L. Erik Lundberg far more money with a job at Goldman Sachs or some other Wall Street institution.. Especially considering that Mr. Lundberg's department *grew* U of M's investments by 9% in the past decade, compared to the S&P losing 2.2% and the average University endowment gaining only 4.2%. Source: http://www.ns.umich.edu/htdocs/releases/story.php?id=7365

djm12652

Tue, Dec 22, 2009 : 5:24 p.m.

And on that asset amount of $4 billion, how much of it is real property that is untaxed? What is the dollar value of that real estate that my taxes go towards to keep the area floating? And with "the incentive" pay for a job well done, how much will tuition go up for the students even in light of a job well done. Please give me a break, the university receives state AND federal money, but President Obama is putting the pay scale hammer down on only those executives [in a legally questionable action] for the banking and auto industry, but doesn't find the need to cap these salaries? Smells fishy to me...but hey, at least they have a roof over their heads...for now....

groland

Tue, Dec 22, 2009 : 5:23 p.m.

I would ask why a public university needs a 7 billion dollar endowment in the first place. Rather than spending this on infrastructure,it is invested while the construction on the A2 campus is financed by bond issues and other loans. One day these will come due and then we will know how competent the UM finance division really is.

packman

Tue, Dec 22, 2009 : 5:16 p.m.

To in4mation: Yes they are running a billion dollar corporation, but it literally a "not-for-profit" corporation. It is probably true that many UM folks could run a for profit bottom line type business, but more than a few probably could not. If UM had to pay the usual amount of property tax for all that they occupy, hmmm? And the short 12-13 week semesters? And the profs/TAs who only teach two 1.5 hour sessions per week (on Tuesdays and Thursdays of course) rather than the usual three face to face (MWF) meetings? As a former UM employee, I could go on and on...

ssAA

Tue, Dec 22, 2009 : 5:12 p.m.

If you want to be one of the top universities in the country then you had better have the best leaders. These ten people are some of the best at what they do. L. Erik Lundberg is in charge of $4 billion in financial assets. Would you rather see some hack as CIO just because he or she will work for less money?

voiceofreason

Tue, Dec 22, 2009 : 5:06 p.m.

I am happy these individuals decided not to give up merit pay this year. I would much rather have the two business units of the school (UM Medical System and Endowment Portfolio) run like an actual business. I applaud the fact that these individuals have real incentive to improve the performance of their collective units, and have chosen to reap the benefits of doing so.

jcj

Tue, Dec 22, 2009 : 4:49 p.m.

This is shameful! I would bet everyone of them are sick that this is being published. To take that kind of increase whether it is 8% or 18% is a disgrace! I don't know how they will look the tax payers in the eye. Although they probably won't see this because they no doubt are off on vacation somewhere. I would like to hear from one of them on this site defending this theft. But they will lay low like Tiger Woods for awhile.

social conscience

Tue, Dec 22, 2009 : 4:36 p.m.

This is really sad. And, I mean, the holiday season is upon us and these poor individuals are faced with telling their families that some of them will get no raise this year. It will probably cause some to delay or modify the renovations to the summer home. Really sad. (When things get bad, a good leader should sacrifice more than those those under them. Heaven forbid that one of the top ten would have to grovel on $100K.)