University of Minnesota President Eric Kaler will receive a 5.5 percent raise next year as part of a five-year contract extension.
Kaler will make $785,000 next year under the new deal. By the time his contract runs out in 2020, he will be making more than $987,000. Much of the increase is in the form of supplemental retirement pay.
Board of Regents Chairman Richard Beeson said Kaler's pay puts him sixth among the 14 presidents in the recently expanded Big Ten.
"It is a lot of money, but it's one of the largest organizations in the state of Minnesota. It's one of the largest universities in the United States. It may be the most complex university in the United States," Beeson said.
Before approving the extension, regents praised the president's administrative cost-cutting, negotiations with the state Legislature for more funding, and changes to the Academic Health Center.
Kaler's pay grows the longer he stays in his current job, as an incentive to fulfill his term.
The U's president said he plans to stay until retirement.
"I mean what I say. My wife and I love it here," Kaler said. "I think the upside opportunity is enormous. It's a wonderful institution. I graduated from here. I truly love the place."
Kaler became president in 2011. He has one year left on his original contract.
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