MSU board votes to nearly double president's pay to $2M, citing outside recruitment pressure
The Michigan State University Board of Trustees has voted to negotiate a new contract with President Kevin M. Guskiewicz that would nearly double his financial compensation.
The intention is to pay for the difference through sources not involving the general fund, according to discussions during a special meeting on Sunday. Guskiewicz began his tenure as the university president in March 2024.
"We're making a big financial commitment," MSU trustee Mike Balow said. "Hopefully, it's going to come from the donor community."
Unusual scheduling
The discussions and votes happened during a Sunday evening virtual meeting.
"I object to the rapid-nature scheduling of tonight's meeting, and don't feel it is in the best interest of the subject matter at hand, given the procedures that we normally follow and the transparency we like to have for the university," Balow said as the agenda was introduced.
Both he and trustee Rema Vassar voted against adopting the agenda, but the other six voted to proceed.
President's contract
Guskiewicz will be offered a $2 million base salary along with an unvested employer award of $250,000 and a term extension to 2031, according to the agenda packet.
The vote on that item was six in favor, which was enough to pass. Balow voted no and Vassar abstained.
Board chair Brianna Scott and Trustee Sandy Pierce would then finalize the terms and sign the amended contract. This would be the second amended contract for the president, should it be signed.
The president's contract currently includes a base pay of $1,029,210 along with an unvested employer award of $200,000 per year and expires in 2029. The trustees said this is "consistent with leadership positions across higher education and as a statement of the board's confidence in Guskiewicz's leadership."
Pierce said during the meeting that Guskiewicz did not ask for "any changes in his compensation" or an extension of his contract.
"We do know, however, that he is being aggressively pursued, which I mentioned earlier, and we intend to ensure we retain Kevin M. Guskiewicz as the president of Michigan State University," Pierce said. "We do not want to wait."
She also said the board now has access to comparable package information.
As far as the cost, she said "Once we have an agreement, we will work diligently on sources outside of the general fund of MSU for the additional annual compensation."
Scott said she believed there would be a "domino effect" if Guskiewicz decides to leave the school.
"We hear every day from faculty and staff, alumni and students whose confidence in MSU has increased because of their engagement with President Guskiewicz," Scott said in a written statement after the meeting. "His 'One Team' philosophy and its impact on MSU's culture, people and presence in our state cannot be overstated. We value his leadership and look forward to his continued partnership for years to come."
Code of ethics and conduct
Much of the discussion at Sunday's meeting dealt with accepting an amended code of ethics and conduct on a five-to-three vote. The code had not been updated since its adoption in 2020.
"The revisions clarify expectations around conduct, confidentiality, fiduciary responsibility and respectful engagement," Scott said in a written statement later.
During the virtual meeting, Scott said the trustees have participated in professional development, learning more about the responsibilities and obligations of their elected roles. The eight MSU trustees serve staggered terms and are publicly elected by Michigan voters.
"For some who might be asking why now, during a special board meeting on a Sunday night, I saw that it is never the wrong time to do the right thing," she said.
"Further at our most recent April work session, we were given feedback on our governance, which was quite frankly amounting to a failing grade. Yet since that time, a few members of this board have continued to act against our own governance guidance and consultation given to us by national experts, undermining the president, the administration and decisions made by this board; attacking members of the administration, and trying to interfere in personnel matters and spreading misinformation to constituent groups outside of and within the university. And that has got to stop."
Even that day, Scott said, a journalist was given what she called "an inaccurate version of the resolution we are voting on tonight" regarding the code of ethics and conduct.
The board's most recent previous meeting was April 10. The next regularly scheduled board of trustees meeting is on June 12.