The Minnesota State Colleges and Universities announced that the Board of Trustees has entered into a second three-year contract with Chancellor Steven Rosenstone. Rosenstone, whose current contract is set to expire on July 31, 2014, has agreed to serve through July 31, 2017.
Board Chair Clarence Hightower said the board unanimously authorized him to negotiate the new contract, adding, “In the years ahead, it is imperative that our colleges and universities work together more effectively to overcome the significant challenges facing all of higher education so that we may continue to meet the needs of our students and communities across Minnesota. We are delighted that Chancellor Rosenstone has agreed to continue to lead our system of 31 colleges and universities, and we are confident that under his leadership they will continue to be the state’s highest value, most affordable higher education option.”
As a condition for entering into the new contract, Rosenstone, who has been serving as chancellor of MnSCU while on an unpaid leave of absence from his tenured (lifetime) faculty appointment as a University of Minnesota faculty member, will resign from the University of Minnesota by August 1, 2014. The second contract contains additional changes: Rosenstone’s first contract with MnSCU guaranteed him a two year appointment as a Distinguished Senior Fellow for Academic Affairs following his term a chancellor; this new agreement eliminates this provision. In addition, the performance achievement award (up to $50,000) is eliminated in the second agreement.
Under the new agreement, Rosenstone’s base salary for FY 2014-15 is set at $387,250. This represents a base salary increase of 1.8% in 2013-14 over his FY 2012-13 base salary and a salary increase of 1.8% in 2014-15. The new agreement increases the dollar amount of employee allowances (e.g. housing, transportation, etc.) by $43,160 to bring total remuneration in line with that of other leaders of higher education systems nationally. Chancellor Rosenstone’s total remuneration currently ranks 23rd out of the 65 heads of systems of higher education and 115th out of the 225 leaders of public colleges, universities, and systems (source: The Chronicle of Higher Education Salary Survey, May 2014).
The new agreement also creates a Performance Review Committee led by the board chair to evaluate the chancellor’s performance. The board is expected to receive the committee’s report at its meeting on July 18.