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CSU Trustees OK Presidents' Pay Hike

LOS ANGELES (CBS/AP) — California State University trustees on Tuesday approved maximum salary increases for two new campus presidents in the first use of the board's controversial executive compensation policy.

The board approved the maximum raises of 10 percent over the outgoing presidents' salaries for Diane Harrison at CSU Northridge, who will earn $324,500, and for Tomas Morales at CSU San Bernardino, who will earn $319,000.

A third president received a 9 percent raise: Leslie Wong will earn $324,000 to lead San Francisco State.

All receive a $1,000 monthly car allowance. Harrison receives free campus housing while Morales and Wong each receive a $60,000 annual housing allowance.

A fourth new president will see his pay reduced from his predecessor's earnings. Retired Admiral Thomas Cropper will earn $250,000, 3.5 percent less than the previous president of the California Maritime Academy.

Earlier in the day, CSU students and members of the California Faculty Association staged a demonstration outside the meeting to protest the proposed pay raises.

"Professors are becoming much more activist because they're concerned about what's happening to students," said Dr. Terry Yamata, Professor of Asian Studies at CSU Long Beach. "Tuition has increased and faculty size has gone up."

Under the compensation policy adopted in May, the board set a raise cap of 10 percent, but stipulated that the amount of the raise must be paid for by campus foundations.

According to CSU, the 427,000-student system's state funding was cut by more than $1 billion over the past four years, while enrollment demand continued to increase.

Chancellor Charles B. Reed stressed that foundations will raise money separately for the raises. Foundations will not use any money destined for student scholarships or financial aid.

The policy was adopted after a firestorm of criticism over boosting presidents' pay during a period of drastic belt-tightening caused by state funding cuts.

(TM and © Copyright 2012 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2012 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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