Market Power

Musings by an academic economist on the power of markets and the power over markets.

Tuesday, February 22, 2005

Faculty Bonus Plan

Officials at the University of Missouri are working towards advancing a plan to award bonuses to its faculty. From the Columbia Daily Tribune:

University of Missouri-Columbia Chancellor Brady Deaton said yesterday that bonuses are vital in compensating productive faculty but that the campus must ensure a bonus system isn’t detrimental to its "sense of community."

Deaton said bonuses can help provide money to MU at a time when the state is not increasing its funding share. But bonus plans must provide money to the campus as a whole in addition to faculty enrolled in the plan, he said.

"So we want incentives where we can generate funds from outside the university, and that’s what we’re looking at here," Deaton told reporters. "We feel we ought to be able to use those to help reward those people who are contributing so much to that part of our mission."