By Mark Tanos
Copyright dailycaller
Penn State University just handed its president a massive pay raise while shuttering nearly half its branch campuses.
The university’s board voted 34-1 last week to boost President Neeli Bendapudi’s base salary from $950,000 to $1.4 million. The new package includes automatic 3.5% annual raises through 2032, plus a $525,000 yearly retention payment and $650,000 in supplemental retirement benefits, Penn State’s press release said.
Bendapudi now ranks as the second-highest-paid public university president nationwide, trailing only University of Texas at Austin President Jay Hartzell, CBS News reported. Bendapudi can also earn performance bonuses worth up to 15% of her base pay if she meets board-approved goals.
Board Chair David Kleppinger credited Bendapudi with balancing the university’s budget and securing more than $560 million in philanthropic commitments, according to the press release. The board relied on market data from external consulting firm Segal to set the compensation package. (RELATED: Cozy Deals Send LA Lifeguard Salaries Soaring While Taxpayers Get Soaked)
Penn State’s Board of Trustees has approved a salary increase for President Neeli Bendapudi, saying it’s “in recognition of her leadership in strengthening the University during one of the most challenging times in higher education.” Her base salary is now $1.4M. pic.twitter.com/CxrP6En6Wg — Centre County Report (@CentreCountyRep) September 15, 2025
Just months ago, Penn State’s board voted to close seven of its 15 branch campuses. Penn State DuBois, Fayette, and New Kensington will shut down, along with four others, the outlet reported. Only five branches, including Beaver and Greater Allegheny, survived the cuts.
“That money can be going to other benefits – other campuses,” Penn State Greater Allegheny first-year student Alex Mann said.
The raise comes as Penn State cuts spending across the university, CBS reported. The university’s public broadcasting station, WPSU, announced it will cease operations in 2026 after the Board of Trustees Finance and Investment Committee rejected a proposal to transfer ownership to Philadelphia’s WHYY. (RELATED: President Of Major Texas University To Resign After Backlash Over Gender Ideology)
Penn State has not publicly addressed how Bendapudi’s compensation package squares with the campus closures affecting thousands of students and faculty. The board’s near-unanimous approval suggests trustees see no contradiction between expanding executive pay and shrinking the university’s physical footprint.
