Gabel will be paid $950,000 annually, significantly higher than Gallagher

By SUSAN JONES

The Board of Trustees’ Compensation Committee set Chancellor-elect Joan Gabel’s base salary at $950,000 in a vote April 3, significantly higher than what current Pitt Chancellor Patrick Gallagher’s salary is for 2023 — $698,202. 

A vote by the Minnesota Board of Regents set Gabel’s salary at $660,968 as of Dec. 1, 2021, with future annual raises of between 3 and 5 percent, plus $250,000 in retirement contributions annually.

At the committee meeting, Pitt Board of Trustees Chair Doug Browning said that it became clear that Pitt’s executive salaries had fallen behind its peers — with some of those schools hiring new leaders at base salaries as much as $275,000 more than Gallagher’s.

“We therefore knew that to attract the type of leader we believe this institution needed to continue to ascend to greater heights, it would be necessary to bring our new chancellor in at a salary that was significantly higher than that of Chancellor Gallagher,” Browning said. “We as a board are also aware that many of our faculty and staff salaries need to be adjusted to remain competitive with our AAU peers. And we are committed to supporting the ongoing efforts of the administration to close the gap.”

Gabel also will receive an annual payment that is the equal to the positive difference between $150,000 and the retirement contributions made by the University for her retirement.

To help retain Gabel as chancellor, the board committee also voted that she would receive five annual $200,000 deferred retention incentive payments that will vest only if she does not voluntarily resign as chancellor, or is not dismissed for cause, prior to June 30, 2029. Gallagher had a similar retention package, but for only $100,000 annually for a total of $500,000.

In addition, Gabel will be eligible to receive $100,000 retention payments on the third, fourth and fifth anniversary of her start date, if she does not voluntarily leave or is not dismissed for cause.

And finally, in light of the tax complications that may arise because her transition from one institution to another, Gabel will be entitled to reimbursement of $5,000 worth of tax preparation and planning services in addition to those available to other officers of the University during the first year of her tenure. 

Susan Jones is editor of the University Times. Reach her at suejones@pitt.edu or 724-244-4042.

 

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