VCU Board Raised President Rao's Salary to $1 Million
The Virginia Commonwealth University Board of Visitors voted on September 11 to increase the president's base pay.
Updated on Sept. 30, 2026 in Higher Education
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On September 11, the Virginia Commonwealth University Board of Visitors voted to increase President Michael Rao's base salary to $1 million. The change will take effect in fiscal year 2027 as part of a contract extension that runs through 2032.
Why it matters
The board justified the pay increase by citing President Rao's performance across various university goals. The decision follows a 3.9% tuition hike approved by the board earlier in the year to address rising operational costs.
President Rao's new contract includes a potential performance bonus of up to 25% of his base salary. This compensation package follows the April 2026 approval of a 3.9% tuition increase for the 2026-2027 school year.
The players
Michael Rao
He serves as the president of Virginia Commonwealth University.
VCU Board of Visitors
This body acts as the governing authority responsible for the oversight and administration of Virginia Commonwealth University.
Scott Beardsley
He serves as the president of the University of Virginia and earns a base salary of $1.3 million.
The details
President Rao currently ranks 35th in total compensation among 172 university presidents nationwide. The university's average staff salary is $91,149, while average pay for VCUHealth employees is $77,738, significantly lower than the presidential base pay.
Timeline
In 2025, the Board of Visitors set President Rao's base salary at $895,618.
In April 2026, the board voted to increase student tuition by 3.9%.
On September 11, 2026, the board voted to approve the new $1 million salary.
The $1 million base salary is scheduled to begin in fiscal year 2027.
President Rao's extended contract term will conclude in 2032.
Culture Shift
The move reflects a long-term trend of rising administrative pay within the higher education sector that often draws public scrutiny. This strategy positions VCU to maintain executive leadership parity against regional competitors like the University of Virginia.
The salary adjustment follows an earlier decision to increase tuition by 3.9% for the 2026-2027 school year, impacting the cost of attendance for students in Richmond. Families should account for this tuition hike when planning their academic budgets for the upcoming terms.
The takeaway
Large compensation packages for university leadership continue to be a sensitive topic when paired with rising costs for students. Stakeholders should monitor future budget meetings to see how executive pay aligns with broader institutional accessibility goals.
Further reading
For more background on regional academic governance, explore the Higher Education section.
Source note: This article includes information reported by The Commonwealth Times.
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