LSU President William Tate can nearly double his salary through new incentives 

LSU President William Tate’s new contract includes incentives that can nearly double his $750,000 base salary if he meets certain goals. 

Tate’s contract includes eight objectives that, if met, could add up to $650,000 to his compensation annually. The LSU Board of Supervisors approved his contract in June, and it was finalized Friday. Read the full contract below. 

The offering of such incentives comes as higher education in Louisiana braces for budget cuts ahead of a major tax revenue loss next year. The Board of Regents, which oversees the state’s public universities and colleges, has been advised by the Landry administration to prepare for $250 million in reductions.

If schools in the LSU System get at least 776 new research or grant awards, Tate will be awarded $75,000. If those new awards exceed $150 million, the president will be awarded $75,000. If they exceed $200 million, Tate will be given another $100,000. 

If total research spending at LSU’s Baton Rouge campuses exceeds $125 million, and its system research expenditures surpass $300 million, Tate will be given another $100,000. 

When calculating research dollars for LSU in Baton Rouge, the university typically combines its main campus, the Ag Center and the Pennington Biomedical Research Center. 

The LSU System’s total research activity totaled $428 million annually from 2022-2024, according to a graphic the university posted to social media in June. System-wide spending includes LSU’s Baton Rouge schools, campuses in Alexandria, Eunice and Shreveport and medical schools in Shreveport and New Orleans. 

Tate will be awarded $75,000 if philanthropic fundraising exceeds $50 million for the system and an additional $100,000 if giving exceeds $75 million. 

If LSU Baton Rouge keeps 83% of its first-year students for a second year, Tate will be awarded $75,000. The university’s retention rate for 2022, the most recent year for which data is available, was 84%. 

Finally, Tate will be awarded $50,000 each fiscal year the difference in system revenues exceeds total operating expenses 1.5%. 

He will also receive a one-time $500,000 payment for completion of the fourth year of his new agreement, which spans from July 1, 2024 to June 30, 2029. 

The Tate contract also includes a $15,000 annual vehicle allowance, use of a residence and payment of up to two private club memberships.