The newly appointed Chancellor of UC Davis, Linda Katehi, is facing increasing criticism for her connection to the University of Illinois admissions scandal (where otherwise unqualified applicants with political connections in high places were given, Blago-style preferential treatment in admission).
Given this track record, Katehi was hired at an annual salary of $400,000 (about $85,000 more than her predecessor, Chancellor Larry Vanderhoef -- is she that much better?). It's true that this is small change compared to the $800M for which the university is in the hole, but it does send the wrong message, it is in poor taste, and moreover every little bit counts.
UCOP argues that such salaries are necessary to retain the best talent (just like in the case of the banks, one would like to ask: What talent?), but funny how such retention arguments get no traction when it comes to the faculty and staff that are actually supporting the university's mission.
Here is a prediction: pretty soon the top faculty at the University will start voting with their feet.
UPDATE: The Chronicle also picks up the story here.