Editor’s Note: College finances show costly revolving door of administrators

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Editor’s Note: New CFO needs to bring financial confidence back

By Editor-in-Chief

Every fall semester, The Chronicle analyzes and reports on the college’s Form 990, a tax document that all nonprofit organizations are required by law to complete.

Along with Columbia’s revenue and expenses from the prior fiscal year displayed in the college’s form are salaries of the highest-paid administrators—whether those employees are still at the college or not. Most names on the most recent document covering the 2014-2015 calendar year are ones some current students would not recognize, including former President Warrick Carter and Provost Louise Love.

One of the most disheartening elements of the document is the list of Columbia’s most compensated, which shows the college either paying out, or arguably overpaying, employees on the top list.

Carter, who preceded current President and CEO Kwang-Wu Kim, left the college in August 2013. However, his departure left the college paying him a hefty $2 million into the next year. Employees preceding Senior Vice President and Provost Stan Wearden were also being paid large amounts in the same year Wearden joined the payroll.

Carter received these funds in the same year that the college paid Kim’s full salary of approximately $577,000. While not as high as some of Carter’s  previous paychecks, Kim’s base salary is unsurprisingly higher than his predecessor’s. Though not an occurrence unique to Columbia, Kim’s raise in starting pay is likely the result of Columbia’s need to bolster interest with more attractive pay. 

Several administrators who have since moved to lower positions also received administrator-level pay instead of one comparable to that of their current position, including several former deans—one of whom left the position in the early 2000’s—who are now professors. In one case, former Vice President of Legal Affairs Annice Kelly still received compensation in 2014-2015, despite leaving the college in August 2013, the reason for her large compensation still unclear. Her replacement also received salary at the same time.

One of the most puzzling revelations is related to turnover with the college’s top financial officer. Interim Vice President of Business Affairs and CFO Richard Dowsek made nearly $250,000 for just seven months of work before the college hired Michelle Gates in July 2014. While consultant-type employees can get paid these whopping amounts in order to help places in a bind, it should be obvious this could take a toll on a college if repeated. Since Gates left the college this spring, Dowsek has returned to his interim role and is likely making similar figures, continuing the expensive revolving door.

These payments, whether they’re payouts or overpayments, are costly when done at the senior level. Sometimes it cannot be avoided; however, it is Columbia’s responsibility to make sure our revolving door of administrators does not hurt the college’s financial health. The funds have to come from somewhere, and the college logically has to cut expenditures elsewhere to afford these employees. According to the Form 990, the college’s overall salary expense decreased, while the top employee payments continued to climb.

Creating an environment with quickly and frequently departing administration not only costs in payments made to those departing, but replacing them can only be just as expensive, whether through national searches or the need to raise the pay to adjust to the market for top talent.

In addition to its effects on Columbia’s reputation, the college’s immense turnover and need for last-minute switches has proven to be a financial burden that allocates money into the wrong place. Stabilizing and retaining top administrators will not only make Columbia a more attractive workplace but could potentially improve the school’s dire financial situations and ensure students’ confidence in where their tuition is going.