COMP NEWS – Wisconsin is planning to give public university leaders compensation bonuses if those universities can meet new retention rates.
Most chancellors of Wisconsin’s state universities will receive annual bonuses of up to 15% of their base salaries if their institutions meet key metrics tied to strategic goals, the state’s board of regents voted Monday.
For fiscal 2025, the added compensation, which the system dubs “compensation-at-risk,” will be tied to first-to-second year retention rates for undergraduate students, according to documents provided by a system spokesperson. The arrangement does not apply to University of Wisconsin-Madison’s Chancellor Jennifer Mnookin, whose bonus is tied to her staying in the role.
Specific targets for each chancellor will be created after 10-day fall enrollment numbers are released this year. The compensation increases come as many of the state’s universities face budget shortfalls and retention challenges.
The compensation bonuses are aimed at stemming falling retention rates at public universities around the states.
Falling retention rates within the Universities of Wisconsin have been flagged as one of the key woes facing the system.
They were top of the list of themes that emerged from a deep financial analysis into the system’s universities carried out with consulting firm Deloitte.
In the spring, Jay Rothman, the system’s president, pointed to lower retention rates, along with rising costs, lagging state funding and dwindling cash reserves at some universities.
Total enrollment in the Universities of Wisconsin fell nearly 12% between its peak in 2010 and 2022, when the figure hit a low of 160,782 students, before a modest uptick in 2023.
Tuition revenue has shrunk with enrollment at many of the system’s institutions, while expenses have increased — as they have through much of the higher ed world. The result is that six of Wisconsin’s public universities are facing structural deficits for the 2025 fiscal year.
All of this comes after the system’s institutions have made major cuts to expenses, including the University of Wisconsin-Parkside, which reduced its workforce by 10% last year.
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