Public versus private business school deans’ salary levels and structure in the United States

Abstract

ABSTRACT Despite increased scrutiny of administrators’ salaries in higher education, little is known about the determinants of executive-level compensation at universities. This study examines the individual and institutional determinants of compensation of business school deans, in the United States, with a focus on differentials between private and public university deans, in the level of remuneration and the structure of compensation. Specifically, using a Oaxaca-decomposition, I estimate that despite managing smaller, less research intensive business schools, private university business school deans earn approximately 15% more than comparable public university deans, and that they are compensated more for managing finances than for managing students.