The University of Michigan’s incoming president, Kent Syverud, may receive compensation packages that could pay up to $3 million annually, according to contract details reported publicly. The agreement includes a $2 million base salary, potential performance awards up to 30% of base pay, and generous retirement contributions; it also provides a paid leave-to-faculty transition if he leaves under certain conditions. The contract highlights an intensifying trend of high compensation for public research university presidents amid growing demands from boards, donors and state officials. Higher pay packages aim to recruit leaders capable of navigating political pressure, fundraising challenges and institutional complexity. Trustees and state policymakers should expect increased scrutiny of executive pay as fiscal pressures mount; institutions must balance market realities for competitive leadership with public expectations about stewardship of funds.