KALAMAZOO, MI -- The president of Western Michigan University received a nearly $25,000 raise and a five-year contract extension after his performance was reviewed.

The WMU Board of Trustees approved an approximately 5.4% raise and a five-year contract extension effective July 1, 2020, for President Edward Montgomery, 64, at a meeting Thursday, Dec. 12.

The presidents new base salary will be $486,000 per year. This is a $24,750 increase from 2018. The presidents employment contract was also extended to June 30, 2025.

The Board of Trustees is unified in their acknowledgement of President Edward Montgomerys exemplary leadership of WMU, stated the board recommendation approved by trustees Thursday.

Montgomery began as president at WMU in August 2017 and was initially granted a three-year contract with the university with a $450,000 annual salary. After his first year as president, the board approved a 2.5% increase to his base salary.

The presidents percentage increase in salary is less than the average percentage increase in salary for faculty over the same time period, the university said in a press release. Montgomerys total compensation will now be sixth among those of presidents for the 12 universities in the Mid-American Conference, the university said.

The board also approved a new eligibility for annual, goal-based merit bonuses of up to 10% of his total annual salary, or $48,600. His salary will be reviewed by the board annually and adjusted at the discretion of the board. The board and the president will meet annually to establish goals for the merit bonus.

The bonuses were established to create a merit system that explicitly ties presidential compensation to the success of the university, the release said. The president and Mrs. Montgomery have committed to giving back at least half of any bonus he may receive.

During his time as president, the board said, Montgomery has demonstrated connectivity and collaboration with the campus community, stabilized financial ratings for the university, unified stakeholders through the Think Big initiative, showed fiscal responsibility and accountability with the implementation of a strategic resource management budgeting model, showed forward development with construction of Arcadia Flats and Hilltop Village and championed grants, awards and distinguished recognition on behalf of the university.

The board will continue to track progress relating to improving student success, diversifying revenue streams, and positioning WMU as the school of choice for the region and beyond, the recommendation states.

The board approved an increase to Montgomerys supplemental retirement plan to $84,000 per year from $50,000. The new contract removed a $10,000 annual reimbursement to the president to cover the cost of life insurance.

The board also voiced support for Montgomerys goals of increasing second-year student retention, six-year graduation rate, alumni giving, externally funded research and bettering the universitys reputation.

The following proposal outlines the results of the presidents evaluation.

At the same time, the university is facing a significant challenge. Western Michigan University has seen years of steady enrollment decline as high school graduation numbers in the state decrease and universities and college compete for students.

In the last 15 years, the university lost nearly one-quarter of its overall student population. Western Michigan now has about 6,359 fewer students than the 27,829 enrolled in 2004, according to university enrollment data.

Montgomery said in a previous interview with MLive that the most recent drop in the student population of about 1,000 students since 2018 translates into the loss of millions of dollars in tuition revenue. Efforts to reduce expenditures included a less than 1% increase in the universitys total budget between last year and the 2019-20 school year.

As the student population shrunk, total budgets for the university have risen. In 2004, the school had 27,829 students and a $273 million budget. In 2019, the budget was about $423 million, and the university enrolled 21,470 students.

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WMU president awarded $25K raise and 5-year contract extension - mlive.com