Top 50 New England Boarding Schools Heads Average $420,000 in Compensation

Monday, June 23, 2014

GoLocalWorcester News Team with Kate Nagle and Abe Dube

The heads of the top New England boarding schools don’t just educate the future 1%, many of them are members of the 1%.

The average compensation of the top 50 highest paid New England boarding schools heads of school is more than $420,000 annually, while the average student body of these 50 schools is just over 460 students.

GoLocal researched thousands of pages of federal tax data submitted to the IRS by each of the 99 boarding schools in New England. The schools reviewed have produced some of America’s most powerful and affluent leaders -- and maybe they should, as the schools average yearly tuition for boarders is $52,720. Choate Rosemary Hall claims grads such as Adlai Stevenson, President John F. Kennedy and actress Glenn Close. And Phillips Exeter’s alums include Mark Zuckerberg Founder and CEO, Facebook, and author Dan Brown of “The Da Vinci Code”.

The findings of the research disclosed that the salaries and compensation of boarding school headmasters and headmistresses is often above that of private colleges and universities that are four to ten times larger in student enrollment.

At Tabor Academy in Marion, Massachusetts, recently retired Tabor Headmaster Jay Stroud tallied a compensation package in excess of $822,000 in 2012 – the highest compensation of any of the New England Board School heads. Tabor has an annual tuition for boarders of $53,375 and enrolls 496 students. Famous Tabor grads include Reebok founder Paul Fireman, former Rhode Island Governor Bruce Sundlun and former Boston Mayor Kevin White.

In explaining the compensation, Tabor's Chief Financial Officer Chris Winslow said, ""I think you've seen board members at schools take on increased fiduciary responsibilities for managing a non-profit. Managing resources is of critical importance, and reducing costs where we can is critical. The more money we can save from overhead costs, the more we can put into the school," said Winslow. "Our tuition increase was less this year than it was the previous year."

According to Winslow part of Stroud's $822,000 package included a one-time payment from a non-qualified retirement fund. Since his departure the school has done away with that form of retirement funding and the present headmaster participates in a defined contribution plan. It should be noted Winslow joined Tabor after Stroud's departure.

"I think for boarding schools, it's not just the education piece, it's the social piece, athletics, facilities, food -- there's a lot to look after and oversee. Some of these boarding schools have campuses that rival any college," said Renee Goldberg, who is an education consultant with Options in Ed in Worcester, MA.

It Pays to be a Headmaster or Headmistress

New England boarding schools are idyllic places that claim to inspire the best and brightest. Northfield Mount Herman in Northfield, Massachusetts describes its value as an institution, “After Northfield Mount Herman, students move on to college—including some of the finest in the nation—and into the world with academic confidence and, again, a sense of purpose. They are curious, inspired, motivated. They are ready.”

Maybe the most surprising is that four New England Boarding Schools headmasters receive annual compensation in 2012 of more than $600,000 and the highest annual salary. After Tabor Academy’s Headmaster, Northfield Mount Herman came in second in total compensation of $703,217.

Boarding School Salaries v College President Salaries

To put Tabor's Stroud’s compensation in perspective, the boarding school Headmasters and Mistresses often earn more than the presidents of many of America’s top colleges. Forbes magazine reports that the median total compensation for 2011 of college presidents was $410,523, a 3.2% increase over 2010.

David Angel, the President of Clark University in Worcester, Massachusetts earned just over $300,000 in 2012 to lead a University that enrolls 2,300 undergrads and 1,100 graduate students.

The personal financial guidance publication Kiplinger’s writes, “The latest numbers from the IRS—based on data from 2011 tax returns—show what it takes to be among the top 1% of income earners: adjusted gross income of $388,905 or more.” According to IRS data, 28 of the New England headmasters and headmistresses qualify as America's 1%.

Who Sets Compensation?

At each of the institutions, the Board of Trustees decides the salary and compensation of the headmasters and headmistresses. Board members of these boarding schools are a veritable who’s who wealth and privilege. Board of Trustee members are managing partners at investment banking firms such as Goldman Sachs to major media companies to leaders in the entertainment industry. The Boards are made up often many of America’s most wealthy and powerful. Former President George H.W. Bush is a former member of Philips Andover’s Charter Trustees and served actively from 1967 to 1979 – up until he became Vice President of the United States.

“It is the responsibility of Boards of Trustees to set appropriate compensation for the head of school. In doing so, boards will take into account myriad factors, but the major factors will be the head’s success in furthering the mission and strategic plan of the school, the head’s success in meeting the annual goals defined in conjunction with the Board, and the compensation package of the heads of comparable schools,” said Steve Clem, Ph.D., Executive Director of the Association of Independent Schools in New England in Braintree, MA.

Many of the members of the board of trustees are alumni of the respective school and many are parents of students attending the schools. And, in some cases the headmasters or headmistresses are graduates of the institutions that they are now leading. It is a cozy relationship between headmaster and boards.

“Boards take very seriously their obligations with regard to executive compensation and will often conduct a formal salary study to ensure that the head's compensation is in line with that of her peers. Boards certainly understand that a strong, appropriate compensation package helps to attract and retain effective leaders,” said Clem.

When Northfield Mount Herman Head of School, Peter B. Fayroian was asked about his predecessor he wrote in an email to GoLocal, “...please know that I couldn't comment upon my predecessor's compensation and its rationale for obvious reasons. I might remind you, though, that the total compensation number of many heads in the final year at her or his school often includes years of accumulated deferred compensation; just an FYI.”

As for the head of school compensation, Options in Ed's Goldberg said, "It's ultimately the boards' decisions, but it doesn't bother me at all. I think education is important, and I think people in education should get paid as much or more than people in other fields, such as athletes."

Editor's Note: GoLocal previously reported that Robert and Ted Kennedy attended Phillips Exeter Academy, instead of Milton Academy.

Top 50 New England Boarding Schools Heads Average $420,000 in Compensation

It Pays to be a Headmaster or Headmistress

Boarding School Salaries v College President Salaries

Who Sets Compensation?

Related Slideshow: New England Top Boarding Schools’ Heads Make Mega Salaries

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