Regents approved extending President Mark Hamilton's contract to mid-2007 on Thursday, increasing his salary to almost $300,000.

Currently, Hamilton earns about $250,000 per year. Regents passed the motion in an attempt to bring the president's pay in line with national rates for university presidents.

Regents stipulated that Hamilton's new salary would equal 10 percent below this year's national average for presidents. Presidents at public institutions like UAF received a median salary of $331,000 this year, according to Jim Johnsen, head of human resources.

"This board has wanted to recognize the extraordinary service that Mark has given to the university and to try to keep him here as long as we can," said board chairman Brian Rogers in a statement.

Hamilton will continue to earn his current salary until the new contract goes into effect in 2006. "He didn't get a raise," Johnsen said, "he got a new contract."

Hamilton began at the university earning only $180,000, according to the Fairbanks Daily News-Miner. In contrast, Gov. Frank Murkowski makes about $85,779.

Hamilton could not be reached for comment before press time. But he told the News-Miner the pay increase was a vote of confidence in his leadership and that his salary should be compared to what university presidents in other states make rather than state officials.

"It's not the right comparison; it's how much do I get paid compared to other state university system presidents," he told the paper. "And the answer to that question is substantially less. That's really the issue."

Hamilton joined the university system in 1998 after retiring from 31 years of active duty with the U.S. Army. Since coming on board, he has advocated tuition increases of 10 percent for the past three years.

In addition to his salary, Hamilton has been scheduled to receive a $100,000 bonus if he stays with the university through 2006. The board's action this week changes that bonus from a flat amount to the difference between the president's current salary and the new regent-approved rate, placing it around $100,000 to $120,000.

Hamilton also received a $25,000 bonus in 2002.

On top of his salary and bonuses, the presidency comes with some very nice perks, such as a $9,300 vehicle allowance and a house provided by the University of Alaska Foundation. He also receives standard university benefits like health coverage.

Hamilton's pay came under scrutiny in 2003 after receiving criticism from Republican Sen. John Cowdery of Anchorage "According to the Congressional Library, Secretary of State Colin Powell, also a retired general, receives an annual salary of $171,900," said Cowdery in an April 2003 letter to the editor to the Juneau Empire. "What's wrong with this picture?"

Hamilton shot back with his now-infamous salary-cut offer. "My statement to him very simply was this: If that is standing in the way of funding the university, I will work for a dollar next year and be proud of it," Hamilton told the Anchorage Daily News at the time.

Hamilton continued to work at his full salary.

The university is not Hamilton's sole source of income. He receives a military retirement salary, and according to state disclosure documents, leases at least one property, bringing in more than $5,000 per year.

He also receives shares in the Alaska Air Group, Inc. for serving on its board of directors. The group gave him 282 shares in May, worth $5,008 at the time, for a total of 850 shares.

photo by Nate Raymond

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