The median pay for private college and university presidents in 2011 was $410,523, a 3 percent increase over 2010, the Chronicle of Higher Education reports.

According to the Chronicle’s analysis of federal tax and Department of Education filings of the five hundred institutions with the largest endowments, forty-two university or college presidents earned more than $1 million each; in 2010 there were thirty-six. Robert J. Zimmer, president of the University of Chicago, which has an endowment in excess of $3 billion, earned $3.4 million in 2011, with a base salary of $917,993. Ron B. Seifert, who advises college trustees on presidential compensation, said there were few people qualified to run a major research institution with a multibillion-dollar budget.

"It would be really difficult for you to prove to me that the challenges associated with running a $200 million institution are the same as somebody running an institution at $2 billion," Seifert, vice president of the Hay Group, told the Chronicle. "They are inherently different in terms of the managerial skills required."

Indeed, some would argue that Zimmer is underpaid. In 2011, Zimmer earned $1,113 for every $1 million in university expenses. The median for private-college presidents relative to budget was $5,466 per $1 million of expenses. The data also includes previously deferred funds in its calculation of total compensation, meaning the analysis includes money counted in previous years.

While compensation packages for university presidents typically are structured with an eye toward retaining skilled executives who are also savvy fundraisers, board members are aware that such pay often constitutes an enormous amount of money. "You get a lot more money than you ever thought you would getting a Ph.D. and being a labor economist," said Morton O. Schapiro, president of Northwestern University and a professor of economics. "You're very well compensated. To deny that is crazy."