President stays true to CMU
Daniel AbbeyUniversity President Michael Rao has never actively pursued another job since coming to Central Michigan University in August of 2000.
The Board of Trustees inked Rao to a deal during its meeting Thursday that could be worth more than a combined $1.95 million through 2012. Rao and Board President John Kulhavi signed the contract after the meeting.
“I believe that President Rao is fairly compensated based on his efforts,” Kulhavi said. “The one thing that has impressed me is the tireless effort that he has demonstrated on behalf of this university. He is very involved in every facet of the university.”
The contract is filled with annual lump sum retention incentives that top out at $80,000 in 2008.
“We all get calls on a fairly regular basis,” Rao said, referring to fellow university presidents. “In every case, I’ve said no.”
By the numbers...
- President Rao will make $262,500 per year through 2012
- The contract has lump sum retention incentives that will pay $60,000 in 2006, $70,000 in 2007, $80,000 in 2008 and $50,000 annually through 2011.
- Rao also gets $15,000 in 2006 from deferred compensation, and will get the maximum allowed by the Internal Revenue Service in each subsequent year.
- The contract includes up to $10,000 annually for Rao to replace furniture in the President’s residence without Board of Trustees approval.
- There is no buyout clause in the contract should the university trustees ever fire Rao.
Rao, who has been a university president for 12 years – five at CMU – said he has not been actively searching for a job elsewhere.
Kulhavi said the new contract ranks Rao somewhere in the middle in earnings compared to other presidents in the Mid-American Conference and Michigan.
“So long as I’m welcome here, I plan to stay here,” Rao said. “Time was a strong statement to me.”
Rao said he likes the atmosphere at CMU.
“A lot of times (other universities) present opportunities to double your salary,” he said. “It may not be worth it if the political environment makes it difficult to get things done.”
Rao would not reveal which universities have contacted him, but did indicate there were offers.
