Employee Pay Raises to be Frozen for the 2020-2021 Academic Year

By David Chen, Tucker Gibbs and Cindy Su

While setting the Academy’s budget for the next academic year, the Board of Trustees decided to freeze employee raises for next year—a precedented course of Academy action during financial crises.

The Trustees approved this decision due to the economic effects posed by COVID-19, according to a letter sent to employees by Principal William Rawson. Usually, employees receive a pay increase every year, except in unique cases determined by the trustees. The last time employees did not receive a pay raise was in the aftermath of the 2008 recession. 

The raise freeze was implemented to mitigate the economic effects predicted by the coronavirus outbreak. There has already been a clear economic downturn caused by the pandemic, and according to the Bureau of Labor’s statistics, the number of unemployed persons increased 1.4 million people in March alone. 

“The trustees manage the endowment in a prudent manner that helps insulate school programs from market volatility and preserves principal,” Principal William Rawson said. “Keeping salaries the same will make sure that the school can stay stable economically and pull through this recession.”

According to Academy Chief Financial Officer Marijka Beauchesne, “much work has been done on campus to prepare a proposed budget, which is then shared with the Budget & Finance Committee of the trustees, discussed by the full trustees initially in January when tuition for the following year is decided,” she said. “This year the final budget will be approved in June.”

Instead of laying off employees, the Academy decided to freeze raises, President of the Trustees Tony Downer noted. “Rather than as a first step reducing our headcount (as a great many companies already have), the on campus leadership and the Trustees chose to keep the school’s headcount intact at this time and to respond to the financial pressures attendant to the coronavirus by keeping faculty and staff salaries unchanged for the year ahead,” he said. 

The 2008 Recession marked global declining national economies. Many industries, such as banking and real estates, faced great challenges. Millions of people lost their jobs, houses, and much of their savings.  

Historically, this 2008 Recession was the only instance in which employee pay raises have been frozen. “There was no increase in 2009.  There has been an increase each since then, until this decision for the coming year,” Principal Rawson said.

Some employees agree with the decision of freezing salary raises.  “It would be prudent for the Academy and other schools to freeze salaries and cut costs in other areas,” said History instructor Michael Golay. “Revenues are down. Endowments are down. In many cases wages are still being paid. Lots of outgo [and] not much income. My hope is that the sacrifices, if they're necessary, would be shared out equally.” 

Elizabeth Stevens, a science instructor who has been with the Academy for 20 years, echoed this thought. “No one is happy about not getting a pay raise, but given the current situation, I completely understand,” Stevens said, “I feel very fortunate to have a secure job in this very uncertain time.” 

Some teachers were saddened by the decision. “It is certainly disappointing,” Mathematics Instructor Brandon Hew said. “Pay increases have happened each of my first two years of reappointment.”

Untenured faculty members noted that, while the halt in pay raises does not worry them, the economic climate does. “I am not tenured and, given all the changes that are occurring, I am aware of the possibility that my position as Ensemble Instructor could be eliminated. The music faculty, Kris Johnson, Rohan Smith, Barbara Darby, Peter Schultz and others have all made me feel very welcomed,” Music Ensemble Instructor Paola Caballero said.

 “I have complete sympathy and understanding of the difficult decision making process that may take place in confirming the course offerings for the fall of 2020. I have been very impressed with the adaptability, cooperation, eagerness and overall good faith demonstrated by everyone on the music faculty,” Caballero continued.  “I can only hope that I may continue to be part of this incredible team in the fall.” 

“My biggest concern is that the school will decide to lay off employees,” Classics Instructor Nicholas Unger said. “I hope the trustees will do whatever it takes to ensure that all employees—faculty and staff—keep their jobs.”