New York University is breaking new ground in compensation for higher ed executives and star faculty members by providing loans for vacation homes, The New York Times reported. President John Sexton received $1 million in loans for a home on Fire Island, while others have received assistance to buy second homes in other prime vacation areas. The article notes that many colleges provide homes for presidents, and some institutions in places like New York City -- where housing is expensive -- provide housing assistance for many others. But the article says that help for second homes is "all but unheard-of in higher education."
John Beckman, a university spokesman, told the Times: "The purpose of our loan programs goes right to the heart of several decades of sustained and successful effort at NYU: to transform NYU from a regional university into a world-class research residential university." The loans help attract and retain talent, he said.
Among the critics of the practice quoted in the article was Stephen Joel Trachtenberg, a former president of George Washington University who has been a defender of high salaries and benefits for higher education leaders. "That’s getting to be a little too sexy even for me, and I have a good sense of humor about these things," he said. "I don’t think that’s prudent. I don’t mind paying someone a robust salary, but I think you have to be able to pass a red-face test."
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