SAN JOSE, Calif. — Top administrators across the California State University system will receive more than a half-million dollars in pay raises in what trustees said is an effort to improve recruiting for executive-level candidates — but the policy change sparked outrage from faculty and staff who said it comes as they face “tsunamis” of layoffs.

Trustees approved pay hikes and eliminated salary caps for the system’s executive employees — presidents, vice chancellors and the system’s chancellor, Mildred García — last week after a pay analysis presented by the consulting company Segal found that about 75% of comparable institutions pay executives more than CSU. The new executive compensation policy also includes a performance-based pay incentive up to 15% of the executive’s base salary, a more competitive retirement plan and increased housing allowances ranging from $60,000 to $80,000.

The 22-campus university system said the previous policy — which capped president salaries at no more than 10% above the predecessor’s salary — prevented the system from offering competitive compensation and “significantly constrained” the CSU from recruiting candidates and filling vacant positions. Currently, CSU has three presidential vacancies — California State University, Long Beach, Channel Islands and Cal Poly Pomona — with two more presidents set to retire soon — California State University, San Bernardino and Dominguez Hills.

But the policy change quickly sparked outrage across the state. Faculty and staff in the CSU system condemned the change, arguing it comes amid widespread layoffs, tuition increases and a staggering $2.3 billion budget shortfall. The system’s faculty union contended that most of the new compensation policy’s funds come directly from state funding and tuition dollars.

California Faculty Association president Margarita Berta-Ávila likened the pay boost to “(President Donald) Trump’s construction of a new ballroom while working people were unable to provide for their families during the shutdown” at the system’s board meeting last week.

Loren Cannon, CFA secretary and a lecturer at Cal Poly Humboldt, argued the pay increase for campus presidents comes at the expense of faculty and staff.

“This affluence of upper management requires the impoverishment of workers,” he said. “We simply can’t have it both ways. We can fund a higher education oligarchy, or we can support higher education for California students. We’re at an inflection point that becomes clearer every day: the people of California can’t afford you.”

But CSU defended the move, acknowledging that while the timing is a concern, the adjustment is necessary to attract and retain leaders “capable of guiding campuses through challenging times.” The university system also said the changes will not affect tuition or student fees, and performance-based incentives and retirement compensation will be funded through non-state, non-tuition and non-student funds.

In 2023, CSU approved a five-year tuition increase of 6% each year to address growing operational costs.

Under the policy, CSU presidents will see a salary increase ranging from $22,000 to more than $100,000. San Jose State University’s president, Cynthia Teniente-Matson, is expected to receive a 15% increase, bringing her base salary to $546,066. Cal Poly San Luis Obispo president Jeffrey Armstrong is set to receive a nearly 20% boost, bringing his base salary up more than $100,000 to $611,203. California State, East Bay’s president, Cathy Sandeen, will not receive a boost to her $458,134 base pay.

It was not only California State faculty who condemned the pay boosts.

Democratic Assemblymember Dawn Addis — who represents San Luis Obispo, Monterey and Santa Cruz counties, and is a former special education teacher — also criticized the pay change.

In a statement this week, Addis urged the system’s presidents to reject the pay bump and prioritize bringing teacher and staff salaries “in line with the true cost of living” in California.

“It is unbelievable that the CSU would use public funds to increase the pay of their most highly compensated executives, who already make dozens of times more than their lowest-paid employees, while the regular working people who teach our students, keep our campuses running and ensure students are supported struggle to afford life in California,” Addis said. “Every dollar diverted to inflated executive compensation is a dollar not invested in making higher education more affordable, accessible and equitable for the young students who depend on the CSU to build their future.”

Addis’ comments come as CSU plans to use a one-time $144 million, no-interest state loan to offer one-year bonuses to faculty and staff — roughly a 3% increase in the total pay for the university system’s workers. State lawmakers offered the university the loan as a way to offset the $144 million cut from the university’s funding as included in the state’s 2025 budget.

CSU said it has prioritized investing in faculty and staff in recent years, providing more than $770 million in salary increases over the last four years, while executives received a 7% increase in 2022 and no wage increase in 2021, 2023 or 2024.

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