McMaster University had the third-highest number of employees earning more than $100,000 out of all Ontario universities last year.

The 734 members of McMaster's $100,000 club accounted for almost 30 per cent of the university's total wage budget last year.

McMaster paid almost $100 million in salaries and taxable benefits to those 734 employees alone. The university had 7,500 total employees, as of May.

The University of Toronto led all universities with just over 2,000 employees earning more than $100,000 in 2007. York University was second with just over 1,000.

Across Ontario, nearly 9,400 university employees earned $100,000 or more, based on a Spectator analysis of the province's public sector salary disclosure list.

More than 350 university employees in Ontario earned $200,000 or more last year.

Thirty McMaster employees earned $200,000 or more last year, led by president Peter George, who had a salary and benefits totalling $504,792.

George is the province's highest-paid university president.

Last month, a Spectator special report highlighted the lucrative perks that have been handed out to some of Ontario's university presidents.

That investigation revealed that the province's university presidents will receive golden handshakes worth a combined minimum total of nearly $8 million when they leave office.

The number of Ontario university employees earning more than $100,000 increased by 20 per cent from 2006 to last year, and since 2002, the $100,000 club for Ontario universities has nearly tripled.

At McMaster, the number of $100,000 earners has increased from 297 employees in 2002 to 734 in 2007.

The issue of $100,000 wages highlights the competing forces faced by universities such as McMaster.

On one hand, universities need to retain top performers with competitive wages, which also help the economy of the city.

On the other hand, increased salary and pension costs put pressure on the overall university budget and student tuition.

"The balancing act comes with trying to attract the best staff and faculty that you can within the limits of your budget, and at the same time maintain the quality of education that your students expect," said Colum Bastable, chair of McMaster's board of governors. "And it's not easy.

"It takes quite a bit of expertise to attract the kind of people you want, bearing in mind that Mac is one of only four Canadian universities that's listed in the top 100 in the world," Bastable added.

"That's an important reputation standard that the university is intent on maintaining."

McMaster's $100,000 club last year included about 650 faculty, meaning that more than four of every 10 faculty members earned more than $100,000 last year.

Richard Stubbs, president of the McMaster University Faculty Association, said competitive wages are necessary to attract and keep the top-flight researchers that enhance McMaster's standing.

"That makes the university a resource for the area, which has an impact on everybody in Hamilton," Stubbs said. "If you took the university away from Hamilton, I think that Hamilton would be in even worse shape.

"If I had my way, then the obvious thing is to say that what we have to do is make sure that McMaster is at the leading edge of trying to raise the general economic welfare of the region," Stubbs added. "I think McMaster has an obligation to serve the community. Obviously, we're well paid."

For those who reached McMaster's $100,000 club last year, the average salary and taxable benefits earned was about $131,000.

The Spectator's analysis also showed that wage increases for the top members of Ontario universities' $100,000 clubs grew at a pace that greatly outstripped inflation last year. In Ontario, the combined compensation paid to the top 500 earners at universities last year rose by 7 per cent compared with 2006.

At McMaster, compensation paid to the top 20 earners last year was 8.3 per cent more than in 2006. That's four times higher than Canada's inflation rate last year, which averaged 2.1 per cent over the 12-month period.

One McMaster University union leader said he wasn't surprised by the number of employees on the list, but he did express concern about the size of salary increases at the top end.

"We've noticed in the last five years that the rate of compensation for (top earners) seems to be getting bigger every year," said Matt Root, president of CAW Local 555, which represents 2,200 support staff at the university. "It easily outstrips our annual increases as support staff, that's for sure.

"For us, when we're dealing with the university, it's not so much salaries that we're finding are pressures but it's fringe benefits that we struggle the most to improve," Root added, "things like medical and dental benefits, postretirement medical and dental, and pensions."

According to McMaster's financial report for fiscal 2007, the university's total budget for salaries and wages last year rose by almost 8 per cent from 2006.

In 2007, McMaster's budget for salaries and wages was $334.8 million.

When salaries and all forms of employee benefits are combined, about 62 per cent of McMaster's entire yearly budget is spent on compensation.

The second-highest-paid McMaster employee was Dr. John Kelton, dean of the Faculty of Health Sciences.

He was paid $403,160 in salary and benefits last year, making him the 12th-highest-paid university employee in the province.

Kelton earned more last year than 15 Ontario university presidents.

By comparison, Hamilton Health Sciences and St. Joseph's Healthcare had a combined total of 271 employees last year who earned more than $100,000.

Several of those employees also have faculty appointments at McMaster University.

sbuist@thespec.com

905-526-3226

Key stats:

* McMaster has the third most $100,000 earners (734 employees) of all Ontario universities, behind University of Toronto (2,034) and York (1,023).

* McMaster's $100,000 club represents 10 per cent of the university's workforce but consumes almost 30 per cent of the school's wage budget.

* 45 per cent of McMaster faculty members earn $100,000 or more.

* Compensation to the top 20 earners at McMaster rose 8.3 per cent from 2006 to 2007.

* 30 McMaster employees earn $200,000 or more, and eight of those earn more than $250,000.

* Membership in McMaster's $100,000 club jumped by 20 per cent from 2006 to 2007.

Number of $100,000 earners by Ontario university, 2007

U. of Toronto 2,034

York 1,023

McMaster 734

U. of Western Ont. 730

U. of Waterloo 688

Queen's 665

U. of Ottawa 627

Ryerson 489

U. of Guelph 444

Carleton 433

Brock 294

U. of Windsor 279

Wilfrid Laurier 253

Laurentian 200

Trent 155

Lakehead 139

UOIT 47

Nipissing 42

Algoma 7

Others 109

McMaster University top five earners, 2007

Name Title 2007* 2006* % Increase

1. Peter George President $504,792 $432,882 16.6

2. John Kelton Dean, VP Health Sciences $403,160 $368,822 9.3

3. Barbara Russell Physician $307,340 $271,996 13

4. Roger Trull VP University Advancement $305,099 $254,946 19.7

5. Stephen Collins Chair/Professor $299,021 $264,661 13

* -- includes salaries and taxable benefits