1. Centre College Faculty Salary Analysis: A Review for the Board of Trustees October 12, 2001

2. The statistical overview: Compare Composite Salary and Salary at Ranks Compare Average Salary and Trends Compare Entry-level Salary and Trends Compare Salary at ranks adjusted for COLA Use Three Main Comparison Groups: 1. HEDS-AAUP 2. “The Beloit Group” 3. US NEWS Top Tier

3. AAUP Percentile – Within Ranks Strategic Plan Goal: Raise salaries at each of the three ranks to the 80 th percentile of all AAUP surveyed colleges Currently, full professors’ average salary is at the 78.7 th Percentile, Associates at 76.2 th, and Assistants at 68.7 th. Time-line (trend) analysis shows the impact of the Grissom initiative (handout).

4. Compare Composite Salary (HEDS) The Average Rank Composite weights salaries of faculty at different ranks (Full, Assoc., Asst.) according to proportions across all institutions in the comparison group. The statistic answers: “What would be Centre’s average faculty salary if Centre’s distribution across ranks were the same as that of the whole comparison group?”

5. Compare Composite Salary (cont.) HEDS 2000/01 Data for 93 colleges (Comparison Group is Basically US News 1 st and 2 nd Tier—Selected by Office of Institutional Research, 2000/01) Average Rank Composite: Centre $54,704 Group mean $61,062 St. dev. $8,885 Assuming a Bell-shaped Curve: Centre is at the 24 th percentile for these 93 schools (z = -.7164) (The negative z-score indicates Centre’s Composite is below the mean by.71 standard deviations)

6. Other Comparison Groups Exist The Beloit Group: Centre Beloit Richmond Davidson U South Rollins Hiram Wittenberg Southwestern DePauw Kenyon Rhodes Denison Furman Millsaps Hendrix Centenary Wooster BirminghamS Berea Transy W & L Wofford Gettysburg Connecticut Dickinson Franklin&Marshall Hobart&Wm. Smith Lawrence Trinity

7. Compare Average Salary and Trend “The Beloit Group”: Note effect of Grissom Initiative Year 95/96 96/97 97/98 98/99 99/00 00/01 01/02 * Centre 44.8 46.6 48.3 49.9 52.6 55.3 57.2 Group Average 48.1 49.3 51.3 53.1 54.5 56.1 57.8 %Change Centre 4.0 3.6 3.3 5.4 5.1 3.0 %Change Group 2.4 4.0 3.6 2.5 3.0 3.0 *01/02 figures are projections **Data prepared by Steve Winrich

8. Entry-level Salaries Lag Behind Centre currently ranks 49 th out of 98 colleges (May 2001 comparison group) in Entry-level Asst. Professor average salary in the May 2001 HEDS report. Year 88/9 89/90 90/1 91/2 92/3 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 Centre 26.0 27.5 29.0 30.0 31.5 32.0 32.5 33.5 34.3 35.0 36.0 37.0 38.5 Median 26.5 28.0 29.8 31.0 32.0 33.0 34.0 34.6 36.0 37.3 38.0 40.0 42.0

9. Entry-level Salaries Lag Behind-II Yearly percent changes show how Centre has fallen behind. Red percentages indicate years where the percent increase at Centre is lower than the group median increase. Year 89/90 90/1 91/2 92/3 93/4 94/5 95/6 96/7 97/8 98/9 99/00 00/1 Centre 6% 5 3 5 2 2 3 2 2 3 3 4 Median 7% 6 5 3 3 3 2 3 3 4 4 4

10. Salary Comparisons of US News Colleges Observation: A college’s position in the US News rankings correlates strongly to size of average faculty salary: Comparisons get more favorable for Centre when comparing against colleges farther down in the US News ranking tiers.

11. US News Top 21Colleges Centre vis-à-vis Top 21 colleges in first tier Average Salary (unadjusted for COLA): Rank PR AO AI ALL Centre 66.5 52.4 42.3 55.3 Group Ave. 91.5 64.7 51.3 71.9 Group St. D. 5.8 3.8 2.9 5.9 Z-score* -4.31 -3.24 -3.10 -2.81 Centre Perct. 0% 0% 0% 0% *If assuming bell-shaped distribution. But the percentile calculation makes no assumption.

12. US News Bottom of First Tier Centre vis-à-vis Lower 20 colleges in first tier Average Salary (unadjusted for COLA): Rank PR AO AI ALL Centre 66.5 52.4 42.3 55.3 Group Ave. 82.8 61.1 48.0 64.6 Group St. D. 6.4 4.1 2.5 4.4 Z-score* -2.55 -2.12 -2.28 -2.11 Centre Perct. 0% 0% 0% 5% *If assuming bell-shaped distribution. But the percentile calculation makes no assumption.

13. US News Top 21 With COLA Centre vis-à-vis Top 21 colleges in first tier Average Salary (adjusted for COLA): Rank PR AO AI ALL Centre 66.5 52.4 42.3 55.3 Group Ave. 78.9 55.8 44.2 61.9 Group St. D. 10.5 7.3 5.5 7.6 Z-score* -1.18 -.466 -.345 -.868 Centre Perct. 15% 35% 35% 25% *If assuming bell-shaped distribution. But the percentile calculation makes no assumption.

14. US News Bottom of First Tier with COLA Centre vis-à-vis Lower 21 colleges in first tier Average Salary (adjusted for COLA): Rank PR AO AI ALL Centre 66.5 52.4 42.3 55.3 Group Ave. 70.6 52.2 41.0 55.1 Group St. D. 10.0 7.6 5.7 8.0 Z-score* -.41 +.026 +.228 +.025 Centre Perct. 30% 50% 50% 48% *If assuming bell-shaped distribution. But the percentile calculation makes no assumption.

15. COLA Comparison Centre versus “Beloit Group” Average Salary (adjusted for COLA): Rank PR AO AI ALL Centre 66.5 52.4 42.3 55.3 Group Ave. 68.9 51.0 40.9 54.2 Group St. D. 8.5 5.1 4.2 6.4 Z-score* -.282.274.333 -.172 Centre Perct. 30% 60% 65% 50% *If assuming bell-shaped distribution. But the percentile calculation makes no assumption

16. Conclusions Though salaries still lag behind other colleges, after a cost of living adjustment, Centre’s salaries compare favorably. Entry-level salaries have fallen significantly behind salaries at other institutions. This problem is compounded by the difficulty of persuading recruited faculty that cost of living is potentially much cheaper in Danville than at other locations.

17. Suggestions Use Office of Institutional Research data on COLA when planning faculty salary increases and compensation. Base goals on comparisons adjusted for cost of living within meaningful subgroups of HEDS institutions, such as the Beloit Group or US NEWS top tier Possible Goals: (1) Raise salary (adjusted for COLA) to 50 th percentile of top 21 US News First Tier Institutions. (2) Raise salary (adjusted for COLA) to 70 th percentile (z~.255) of Beloit Group schools.