By Kate Augusto
Former Northeastern president Richard Freeland ranked No. 2 in compensation among presidents of private research universities for the 2005-06 fiscal year, according to the latest Chronicle of Higher Education survey of executive compensation. That compares to a median compensation in the survey of $528,105.
Freeland, who left his position as president in August 2006, is being compensated $2,887,785 during the course of his lifetime. This ranks him second to Benjamin Ladner of American University, who stepped down in October 2005 and is receiving a total compensation of $4,270,665. Like Ladner, a good portion of Freeland’s compensation, $2,333,428, is part of a long-term annuity retirement payment, which is stated in a footnote in the Chronicle article.
The article also said many other presidents of private institutions made more than $1 million a year because they qualified for similar packages.
In comparison, Aram Chobanian, former president of Boston University, stepped down in August 2005 and received a total compensation of $878,326.
A written announcement by Neal Finnegan, chairman of Northeastern’s board of trustees, on the myNEU portal said Freeland’s retirement package will be paid in annual increments during the course of Freeland’s life. It was reported as a lump sum instead of an annual payment because IRS and accounting standards require them to do so, according to the announcement.
Part of the announcement states: “Dr. Freeland did a great job for Northeastern. The board has recognized that in a retirement package that is consistent with his accomplishments and prudently structured for the good of all concerned.”
Northeastern officials would not comment further.
According to the Chronicle, the median compensation of leaders of research institutions rose 37 percent in the last five years to a little more than half a million dollars. Also, 81 presidents of private institutions made more than $500,000 in the 2006 fiscal year, which is up 200 percent from five years ago.
These figures from the 2005-06 fiscal year are the most recent available for private institutions.
Fred McGrail, Northeastern director of communications and public relations said in an e-mail to The News that current Northeastern President Joseph Aoun’s salary will be made public in May, when he files a form with the IRS providing it.
