Next University of Minnesota President Rebecca Cunningham could earn more than $1 million per year

Incoming University of Minnesota President Rebecca Cunningham would earn more than $1 million per year under the terms of a contract going before U regents for approval Friday.

That figure would place her compensation in the top quarter for leaders of Big Ten universities, and some regents said they considered that range in negotiations.

“President-designate Cunningham brings strong experience and unique perspectives that will make her an outstanding president for the University of Minnesota,” Board Chair Janie Mayeron said in a statement. “Consistent with board policy, this agreement is competitive, market-driven, transparent, and it reflects her ability to help us build on the opportunities that lie ahead, maximize the University of Minnesota’s positive impact in the state and world, and be with us for the long term.”

Regents last month selected Cunningham, a medical doctor and vice president for research and innovation at the University of Michigan, to serve as the next U president. They said they thought her experience in medicine and in higher education would help the U as it charts the future of its medical programs and navigates other challenges facing colleges across the country. Regents are set to vote on the contract during a meeting Friday morning.

Past U presidential contracts have elicited heated debate. Students, lawmakers and some faculty members have questioned six-figure salaries for past leaders, noting that students have experienced tuition hikes and employees have at times been asked to make cuts. Others have defended them, saying the U needs to offer competitive pay to ensure it attracts the best leaders.

U leaders reviewed data from a national organization that compiles higher education human resources information and found that total cash compensation for Big Ten executives ranges from roughly $890,000 to $1.2 million.

If approved, Cunningham would receive compensation similar to what the U expected to pay former President Joan Gabel before she left to take another job. Their contracts, though, are structured differently.

Gabel had been on track to earn about $1.14 million this fiscal year, with about $749,000 of that being base pay and the remainder given in the forms of retirement contributions, performance bonuses and other allowances.

Cunningham’s contract calls for her to receive close to $1.1 million, with $975,000 of that being base pay and $120,000 coming in retirement contributions. The agreement also calls for housing allowances and moving expenses, the amounts of which aren’t specified.

It also includes raises in future years, based either on the increases provided to professional and administrative employees at the U or a 3.5% increase, whichever is greater.

The contract calls for Cunningham to eventually move into Eastcliff, the U’s presidential mansion, which is currently being leased to the state to serve as a temporary residence for Gov. Tim Walz and his family while the governor’s residence undergoes renovations. But it also leaves open the possibility the U could provide other accommodations if it decides not to keep the building. Regents are considering whether they should sell Eastcliff or seek millions in private funding to cover its upkeep.

If regents approve the contract, Cunningham will officially begin work July 1 and continue through June 30, 2029.

In a statement, Cunningham thanked the board for its support.

“I can’t wait to continue getting to know more about the great people at the University of Minnesota, learning from Interim President [Jeff] Ettinger, and immersing myself in the U of M’s work later this spring,” she said.

The board is also expected to discuss Friday a proposal to create a new panel to review potential conflicts of interest involving U presidents. Regents began exploring that idea after they faced criticism for allowing Gabel to take a paid position on the board of Securian Financial, which had business with the U. Gabel eventually resigned from that role.

Cunningham’s contract, if approved, includes a clause that says she agrees not to “render services of any professional nature” for pay to organizations outside the U, including “serving as a member of the Board of Directors for any other organization, for profit or not for profit, absent Board approval.”