Penn State president Neeli Bendapudi receives massive pay raise amid campus closures

In September 2025, Penn State University in the United States saw significant changes in its leadership compensation. The board of trustees voted overwhelmingly to approve an increase in the salary of Neeli Bendapudi, the university's president. The new compensation package elevates her base salary from $950,000 to $1.4 million per year, rendering her the second-highest paid public university president in the country. Additionally, her annual performance bonus has been set at a maximum of 15% of her salary, contingent on meeting established performance goals. This pay adjustment includes projected annual increases of 3.5% until 2032, as well as enhancements to her completion/retention payment and supplemental retirement plan. The new structure defines a base salary, scheduled bonuses, and additional retirement funding that aligns with the university's strategic goals for the future. This decision comes at a delicate time for the university. In June 2025, the Penn State board announced the closure of seven of its branch campuses amid financial challenges. The decisions on campuses to close sparked considerable debate among students and faculty about the allocation of funds, particularly at a time when key parts of the institution are being cut. Critics, such as first-year student Alex Mann from Penn State Greater Allegheny, voiced concerns about prioritizing a high salary over investments in educational resources and accessibility across campuses. The action of increasing Bendapudi's compensation sparked mixed reactions as many felt funds could be better allocated towards maintaining educational opportunities for students and supporting the branch campuses. The university also dealt with additional challenges surrounding public broadcasting cutbacks, with WPSU announcing plans to wind down operations due to financial constraints. These twin events of leadership pay hikes and campus cuts reflect the ongoing financial dilemmas faced by institutions of higher education, particularly during periods of economic instability and shifting public educational priorities. As the landscape of higher education continues to evolve, the decisions made by Penn State University serve as a microcosm of broader national debates about educational funding, administrative salaries, and the sustainable future of public universities in America. The consequences of these decisions will likely have lasting impacts on the university's governance, student populations, and the communities surrounding its campuses.