February 02, 2009

Salary (reduction) sanity

My first book was about downsizing. It stressed ways to do it smartly and humanely. (See my website for its text). So it was encouraging to see the approach Middlebury College is taking to adjusting to the current economic crisis. Here is what it’s president, Ron Liebowitz, wrote about how he is distributing the pain:

"Though we are committed to competitive salaries for our faculty and staff, and recognize their importance in hiring and retaining the best faculty and staff, we believe it would be unwise to raise salaries this coming year as if it were business as usual, especially when the cost of living has not increased significantly (0.1 percent) since December of 2007.

We will provide a 2% raise for employees who earn $50,000 or less, but hold flat the salaries for those who earn above $50,000.

In addition, all members of President’s Staff, which includes 16 colleagues, will take at least a 2.5% reduction in salary.

Vice presidents will take a 5% cut, and my salary will be reduced by 10%.

This will be the second year in a row that the vice presidents and I have not received a salary increase."

Who says the non-profit world lags the private sector in intelligent business practices?


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