U-M President Mary Sue Coleman has donated past raises to student causes. (Todd McInturf / The Detroit News)
Flint ó As the University of Michigan prepares to search for a new leader and launch a fundraising campaign, the Board of Regents on Friday boosted the presidentís compensation to nearly $1 million and learned the endowment had reached a historic $8.4 billion.
The regents gave retiring President Mary Sue Coleman a $100,000 bonus. She was the sixth-highest-paid university president in the nation in 2012, when she earned $878,357.
The bonus, which was taken from non-general-fund resources, was in lieu of an annual salary increase and brought Colemanís total compensation to $978,357. Since Colemanís raises have been less than $20,000 annually in recent years, the bonus was equivalent to more than five raises.
ďPresident Coleman has led the university in challenging and important milestones in affordability, financial aid and business efficiency,Ē Regent chair Andrea Fischer Newman said.
The total compensation of U-Mís first female president includes a base salary of $603,357; an annual $175,000 in deferred compensation and a $100,000 annual retention bonus, besides the bonus approved Friday.
Three times previously, Coleman declined to accept her raise and donated it to student scholarships and program.
Coleman ó who became U-Mís most philanthropic president last week when she and her husband announced they were donating $1 million for student opportunities ó said the bonus came as a surprise.
ďI am deeply, deeply grateful for the support of this board,Ē said Coleman, who was hired as U-Mís president in 2002and will retire next year when her contract expires.
U-Mís endowment ó the second-highest in the nation among public universities and seventh-largest among all U.S. universities ó performed at a 10.75 percent investment return since 2012, when it was valued at $7.7 billion. That is a reversal of a 0.5 percent decline from the previous fiscal year, officials said.
The investment report also showed that as of June 30, U-Mís cash and investments reached $10 billion for the first time.
The performance and growth of the endowment come as the university has been flush with large gifts from donors, including $110 million from Charles Munger for graduate student housing and $50 million from Helen Zell for the graduate Fine Arts in Creative Writing program.
Miami Dolphins owner Stephen Ross also gave $200 million for the business school and athletic department; the regents named the athletic campus on the south part of the university campus after Ross.
Harvard has record
Harvard University had the nationís largest endowment in 2012, with $30.4 billion. Locally, Michigan State Universityís endowment fund is $1.9 billion while Wayne State Universityís is $277 million.
U-Mís endowment report comes as the university prepares to launch a multibillion-dollar fundraising campaign in November, its sixth in the last half-century and touted as its most ambitious ever.The goal will be announced next month.