Yale Freezes Pay of Faculty Earning > $75k

From a memo sent to Yale faculty and staff by President Richard C. Levin:

1. We will reduce 2009‐2010 budgets by an amount equal to 7.5% of the salaries and benefits of all nonfaculty staff, rather than the 5% announced in December. We expect to achieve this reduction largely through attrition in managerial, professional, clerical, technical, service, and maintenance staff, as well as through reduction of casual and temporary employees. To the extent that layoffs are necessary, we will make sure that affected individuals are provided support and guidance.
2. We will also seek larger reductions in non‐salary expenditures. Instead of a 5% reduction for each of the next two years, we will ask units to budget a 7.5% reduction for 2009‐2010, and continue to plan for an additional 5% reduction the following year.
3. Faculty, managerial, and professional employees with salaries below $75,000 will continue to be eligible for merit increases of up to 2%. But there will be no increases for those with salaries above $75,000, including all deans, directors, and University officers. Foregoing the increases announced previously will allow us to preserve more staff positions.

(Hat Tip:  ABA Journal.)