The perks of being a principal

Contracts ‘very competitive to attract the best people’

Former principal Karen Hitchcock’s salary was $340
Image supplied by: Journal File Photo
Former principal Karen Hitchcock’s salary was $340

From million-dollar leave payouts to hips in local recreation clubs, many of the perks of being a university principal in Ontario are being publicly released for the first time.

The Hamilton Spectator filed a series of requests under the Freedom of Information Act to obtain the contracts of 17 university presidents and principals, making public the salaries, benefits and compensation packages they receive. They published the contracts in June.

Queen’s Vice-Principal (Human Resources) Rod Morrison said that when hiring a principal, the University looks at the competitive range of compensation and decides where it wants to be in that range.

During the hiring of the principal, it was up to a t board-senate committee, chaired by former chancellor Charles Baillie, to determine the specific details regarding compensation. Morrison said once the final candidate for principal has been selected, discussion between the committee and the principal begins. The principal often suggests what sort of compensation he or she wants and it is up to the to decide what will be approved.

“You see what they want and negotiate from there,” Morrison said.

When Hitchcock’s contract was signed on May 3 2004, Queen’s agreed to many perks to give the incoming principal.

Her starting salary was $310,000 in 2004 and gradually moved up to $340,000 by 2007.

She also received an interest-free loan of up to $500,000 to help acquire a house in Kingston. She was also granted full use of the Summerhill residence for the purposes of “University entertainment,” with all bills to be footed by the University.

Principal Tom Williams’ salary is $370,000, and the highest paid person at Queen’s is David Walker, Dean of Health Services, who receives a salary of $407,136.27.

Some of the other items in Hitchcock’s contract were standard, Morrison said, including paying for relocation of the principal and her husband to Kingston.

Morrison said although these are not all standard practice across Ontario universities, a competitive contract is necessary to draw in potential employees.

“You have to accept this is a very demanding job, but it is also very competitive to attract the best people,” he said.

Hitchcock’s contract also stated she would be compensated at the end of her term of employment. The contract stated, “in the event that your employment is terminated by the University prior to June 30, 2009 … the University shall pay you, on the date of termination of your employment, a lump sum payment equal to eighteen months of compensation.”

It went on to say, “in the event that the formal review process does not result in the renewal of your employment, your salary will be continued for a further twelve months beyond the initial term.”

Because Hitchcock was neither terminated nor selected for reappointment, it is unclear whether or not she received either one of those compensation packages.

The list of perks that Queen’s employed to attract Hitchcock continues. They offered her any help she needed in the immigration process from the United States, including reimbursement for any “reasonable expenses” incurred during the process and travel expenses for her husband. She was also allowed to stay on two board positions she held in the private sector and received six weeks of annual holidays.

Compared to universities across the province, Queen’s compensation packages don’t stand out as abnormally lofty.

McMaster President Peter George will receive payments of $99,999 for 14 years after he leaves office. The number is significant because it is one dollar less than the amount that must be publicly shared under the province’s Public Sector Salary Disclosure Act.

Queen’s is not alone when it comes to offering compensation packages with many unusual perks. Other universities often pay for car purchases, dues to social clubs and free use of university-owned residences.

“Once you get the best person, they negotiate knowing they are the best person,” Morrison said.

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