University of Pittsburgh
October 20, 1998

PITT BOARD OF TRUSTEES SETS OFFICERS' COMPENSATION

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PITTSBURGH, Oct. 21 --- The Compensation Committee of the University of Pittsburgh Board of Trustees met today and approved the salaries for the chancellor and the other senior officers of the University for the current fiscal year.

"The University of Pittsburgh has moved forward on virtually every front -- including student recruitment, academic program development, student life enhancements, research initiatives, Commonwealth relations, facilities renovation and construction, and fundraising," Board Chair J.W. Connolly said. "The difference between the University of Pittsburgh today and the University that existed not too many years ago is leadership. Chancellor Nordenberg and his management team are moving Pitt forward with hard work, creative thinking and a real sense of institutional commitment."

Citing "another year of great progress for the University of Pittsburgh," the committee set Chancellor Mark Nordenberg's annual base salary at $250,000 and authorized an incentive payment of $30,000 for accomplishments during the 1997-98 academic year. The Compensation Committee also voted to continue the practice of providing a portion of the Chancellor's compensation in the form of a performance incentive, though the amount for next year was not specified.

"It is my strong hope that the entire University will move to a compensation system that is more closely tied to performance assessment. But whatever happens in the rest of the University, the trustees intend to tie officer compensation, for which we have responsibility, to assessments of performance," Connolly said.

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Compensation Committee -- page 2

Nordenberg expressed his gratitude for "this strong and tangible expression of approval" by the Board. "However, I am even more grateful for the help they provided throughout the year. We worked very hard together to make the University of Pittsburgh an even better place," he said.

The Compensation Committee approved the salaries of the other University officers, based on recommendations from the Chancellor. The 1998-99 annual salaries approved were: Carol Carter, vice chancellor for institutional advancement, $154,000; Jerome Cochran, executive vice chancellor, $200,000; Robert Dunkelman, secretary of the corporation, $127,500; Arthur Levine, senior vice chancellor - health sciences and dean of the School of Medicine, $498,000; James Maher, senior vice chancellor and provost, $210,000.

"I am grateful to everyone who has contributed to the University's progress, particularly the members of our senior leadership team. They are assuming increasingly difficult responsibilities in more and more challenging times. This past year, as the salaries approved today reflect, every one of our officers performed at an extremely high level. The more substantial increases awarded to Dr. Maher and Mr. Cochran directly reflect the expanding scope of their responsibilities, and were influenced by our benchmarking at peer institutions" Nordenberg said.

"Pitt's successes are important to the entire region and are a source of great pride for the University's Board of Trustees. At the same time, we recognize that the compensation for the University's officers tends to be lower than that of similar positions at comparable universities. In fact, even at his new salary, Chancellor Nordenberg continues to be the lowest paid among the chancellors and presidents of major Pennsylvania universities. We are committed to moving those salaries in the right direction, but cannot achieve all the progress we would like in any single year," Connolly said.

All of the salaries approved by the committee are effective July 1, 1998, with the exception of Dr. Levine's. His appointment and salary are effective November 1, 1998.

Examples of progress under

Chancellor Nordenberg's leadership:

• With the development of the ten year facilities plan and the Commonwealth commitment of $138 million, the University is now poised to begin the most ambitious program of renovation and construction in its history.

• Student demand for a University of Pittsburgh education continues to grow dramatically, with applications to the Pittsburgh campus at an all time high during the past year, and increasing by 74 percent over the past three years.

• Curricular developments include new emphasis on such important areas as bioengineering and computer engineering.

• Significant enhancements have been made to the quality of student life ranging from linking all residence hall rooms to the University's computer network and establishing student fitness centers to expanded counseling and placement services and programs to connect students with the various cultural opportunities in Pittsburgh.

• Last year was another record breaking year in private fund raising, with $57.5 million in gifts received. Alumni giving increased by 34 percent and support from trustees has almost tripled.

• An agreement was reached cementing a new relationship between Pitt and the UPMC Health System that will support the University's world-class work in the health sciences throughout the next decade.

• Chancellor Nordenberg has brought a new level of positive visibility to the University, something that was badly needed.