Penn State Raises President’s Salary Amid Campus Closures

Penn State University has approved a substantial salary increase for its president, even as it plans to close nearly half of its branch campuses.

Last week, the university’s board voted overwhelmingly, 34-1, to boost President Neeli Bendapudi’s base salary from $950,000 to $1.4 million. This new contract includes an automatic annual salary rise of 3.5% until 2032, a yearly maintenance payment of $525,000, and $650,000 in supplemental retirement benefits.

Currently, Bendapudi is the second highest-paid public university president in the country, just behind Jay Hartzel from the University of Texas, according to CBS News. She may also qualify for a performance bonus up to 15% of her base salary if she meets certain targets set by the board.

In a press release, Chairman David Klepinger praised Bendapudi for successfully balancing the university’s budget and securing over $560 million in philanthropic commitments. The board relied on market data from an external consulting firm to create this compensation package.

Recently, the Pennsylvania board decided to close seven out of its 15 branch campuses, including locations like DuBois, Fayette, and New Kensington. Only five branches will remain open, such as Beaver and Greater Allegheny.

“That money could benefit other campuses or programs,” noted Alex Mann, a freshman at Greater Allegheny.

As the university navigates budget reductions, salary increases are still happening. The university’s public broadcasting station, WPSU, announced it would cease operations in 2026 after a rejected proposal to transfer ownership.

Despite these significant changes, Penn State has not provided clear communication regarding the campus closures and the implications of Bendapudi’s hefty compensation package. The board’s strong approval suggests there is little conflict between increasing executive salaries and reducing the university’s physical presence.