Penn State’s president is receiving a significant pay increase even as the university moves forward with plans to shut down nearly a third of its branch campuses.
The Board of Trustees recently approved a new contract boosting President Neeli Bendapudi’s base salary from $950,000 to $1.4 million. Her pension will more than double, rising from $250,000 to $525,000, and deferred compensation will increase from $550,000 to $650,000. The contract also includes an automatic 3.5% annual raise through 2032.
The decision comes just months after trustees voted to close seven Commonwealth Campuses — Dubois, Fayette, Mont Alto, New Kensington, Shenango, Wilkes-Barre, and York — following the 2026-27 academic year. Those campuses were among a dozen initially studied for closure, as administrators sought to address enrollment and financial pressures.
Once the closures take effect, Penn State will continue to operate 13 branch campuses. The shuttered locations collectively enroll approximately 3.6% of students, employ 3.4% of faculty, and 2.2% of staff.
The university has defended both the closures and Bendapudi’s pay increase as necessary steps to ensure Penn State’s long-term strength. Trustees have credited her with balancing the budget, securing more than \$560 million in philanthropic commitments, and advancing the university’s research and health care missions.
Still, the optics of a significant raise amid campus shutdowns have fueled debate within the Penn State community and beyond. The salary boost highlights the difficult balancing act facing higher education leaders: cutting costs and programs in some areas while rewarding executive leadership, seen as critical to navigating financial challenges.
Bendapudi has previously argued that tough decisions are needed to sustain Penn State’s future, citing declining enrollment and the unsustainable structure of its Commonwealth Campus system.
Source: Patch