New chancellor’s base salary $400,000

• By JORDAN BLUM
• Capitol news bureau
• Published: Jun 5, 2008 - UPDATED: 3:50 p.m.

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Incoming LSU Chancellor Michael V. Martin will receive a $400,000 base salary and another $125,000 in annual deferred pay.

The contract agreement is different from LSU President John Lombardi or former Chancellor Sean O’Keefe primarily because of Martin’s much larger deferred pay, which is additional monies to be paid after he has served a specific number of years.

Martin is expected to start at LSU Aug. 1 after transitioning from his presidency at New Mexico State University.

Martin also would be a tenured professor in the Manship School of Mass Communication.

The LSU Board of Supervisors approved Martin’s appointment this afternoon.

At the end of five years – in 2014 – Martin would be entitled to $625,000 in delayed pay alone.

Martin’s $125,000 in deferred pay is broken down into $100,000 in standard deferred compensation, meaning that he would be entitled to three years of it if he leaves after three years. But the remaining $25,000 a year is longevity pay to be received only if he stays at least a full five years.

O’Keefe had a larger $425,000 base salary, but a much lower $25,000 in annual deferred pay.

So the total value of Martin’s deal is worth more at $525,000 annually if he stays five years, although he will have to wait to receive the full annual amounts.

The large amount of deferred pay is an incentive “to cause people to stay,” said Ray Lamonica, LSU System general counsel.

Up to 10 percent – or $40,000 a year – of Martin’s base pay will be covered by the LSU Foundation or other affiliates.

Martin also will live free in the LSU chancellor’s home and have use of a university vehicle. He will have membership in the Country Club of Louisiana and at a “private dining club.”

Those are similar to the perks received by O’Keefe, who resigned under fire in January after three years as chancellor.