Penn State’s board boosted President Neeli Bendapudi’s base pay nearly 50% to $1.4 million even as the university announced closures of seven regional campuses and large buyouts, drawing sharp criticism from faculty and staff. The raise came as university trustees cited Bendapudi’s fundraising and budget-balancing work; critics called the move tone-deaf during a period of program contraction and frontline layoffs. The Penn State case highlights a broader sectorwide divergence: a Chronicle analysis shows median presidential base pay rose roughly 53% from 2012 to 2022 while institutional-average faculty pay grew about 21%, widening executive–faculty pay disparities. Campus leaders and boards now face intensified scrutiny about compensation choices as presidents’ packages rise amid financial retrenchment that affects staff, regional campus access, and academic operations.