By Troy Gillard (Twitter: @Troy_Gillard)

Province to cut ‘excessive wages’ of Presidents at Alberta’s colleges and universities

Apr 10, 2018 | 4:34 PM

EDMONTON —  The province is bringing in a pay grid for the 20 leaders of its post-secondary institutions. The new rules will impact any new or renewed contracts and come into effect April 15. Existing executives will have a two-year transition period.

Advanced Education Minister Marlin Schmidt has said the salaries currently vary widely among the presidents and the pay was out of step with other schools and equivalent public service jobs.

“We need to ensure that taxpayer dollars are being used in the best interests of students, staff, and faculty,” said Schmidt. “By lowering salaries and creating stronger controls on benefits, we’re making sure that public funding goes towards the classroom, where it belongs.”

Red Deer College President and CEO Joel Ward currently earns a base salary of $337,500. Tuesday’s move by the province lowers the maximum base salary for Ward’s position to $267,500, a cut of more than 20 percent.

Ward is serving his second five-year term as RDC President and CEO. His contract is due to expire at the end of 2019.

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In 2016, U-of-L President Michael Mahon had a salary of $482,432.

Alberta’s two largest institutions, the University of Alberta and the University of Calgary, will be allowed to pay their presidents a base salary of no more than $447,000 a year.

There will be a ban on bonuses and other rollbacks so those presidents can’t earn more than 20 per cent of their base pay in benefits, bringing the maximum total compensation package to about $536,000.

University of Alberta president David Turpin makes about $824,000 a year in pay and benefits and Elizabeth Cannon at the University of Calgary makes about $897,000.

The new regulations will cap salary levels for post-secondary presidents, eliminate executive bonuses and limit executive severance to a maximum of 52 weeks. They would also set guidelines for additional benefits and ban perks, such as signing bonuses or sports memberships.

The province expects to save $5 million annually through the new pay rules