The top two officials at Webster University received 6-figure performance bonuses during the 2021-2022 school year as the school faced a rising deficit.
Chancellor Elizabeth Stroble made nearly $1 million that year, including a bonus of $174,702. President Julian Schuster received a $153,394 bonus. His overall compensation grew to $857,667 — up 17% from the previous school year, according to university tax filings.
The documents also show that Webster University saw its annual revenues drop by more than $5 million, compared to the 2020-21 school year.
The documents alarmed students and alumni, who said they're concerned about how administrators are managing the school's finances in a time when other universities are closing.
Students are worried that the university is in serious financial trouble, senior Luke Adams said.
“I'm not anti-Webster. I think Webster's great and should survive,” said Adams, who majors in English and philosophy. “At some point, the students and workers will realize that this parasitic position is endangering their work, is endangering their education, their place to live, their community.”
In an email last week, the university board of trustees informed faculty and staff that future performance bonuses are unlikely. Board Chair Sumit Verma wrote that “given the financial situation of the University — performance awards in subsequent years were reduced and/or eliminated entirely.”
Faculty members issued a vote of no confidence for both Schuster and Stroble in September. Stroble resigned and began a sabbatical in December. University officials announced she will retire on June 30, beginning a new role and giving up $629,000 in compensation, according to financial documents.
Stroble’s decision to retire is not surprising, said Kieron Remy, a 2022 graduate who protested executive compensation increases several times during Stroble’s chancellorship.
“I think the university was forced to do something,” Remy said. “The faculty as well as the students were calling on them to do it. So in my opinion, she definitely got fired by the masses as opposed to the administration.”
Stroble will return as chancellor emeritus in fall 2024, and university officials say she will not receive a salary.
While financial information for the current school year is not available, in the email to faculty Verma wrote that the university’s financial troubles continued last semester.
“Enrollment and revenue are increasing in the U.S. and internationally,” wrote Verma, citing the 27% increase in 2023. “The reclassification of certain endowment funds has been a positive development as well.”
The university plans to use $28.8 million in endowment funds to meet loan requirements. In February, St. Louis County Circuit Judge Stanley J. Wallach approved the private university’s request to remove restrictions on up to $34.3 million of the money — which many donors had dedicated to scholarships and research. Several donors had sued the university to block it from using the money to meet loan requirements, but ultimately withdrew their filings.
Webster is one of many universities facing financial difficulty. College enrollment nationwide has declined more than 7% in the past decade. Fontbonne University announced in March that it would close in at the end of summer 2025, citing dwindling enrollment. Despite that trend, Webster officials are optimistic about the future of the institution.
“Great days are ahead for Webster University. We are seeing positive trends here at a time when higher educational institutions across the nation are challenged,” Verma said.
Correction: Webster University administrator bonuses occurred during the 2021-2022 school year. The university plans to use $28.8 million of what had been restricted endowment funds to meet loan requirements for liquidity. A previous St. Louis Public Radio report misstated the school year for those bonuses and how much of the endowment funds would be used. This update also clarifies that the lawsuits filed by donors have been withdrawn and that Stroble will not receive a salary as chancellor emeritus. Also, Fontbonne University will close at the end of summer 2025. A previous version of this article misstated when the school would shutter.
