The Missouri State University Board of Governors voted to extend the contract of President Michael Nietzel.
The extension means Dr. Nietzel will head MSU until 2012.
Nietzel's salary increase will not exceed the pool increases for faculty and staff, currently estimated to be 4 percent. Nietzel's current salary is $257,088. The details of the contract will be finalized in time for Board action at the June meeting when the Board approves the university's internal budget for 2008-09.

The Board of Governors also announced it has established the endowed Missouri State University Leadership Chair, which was a joint project of the current, past and student members of the Board of Governors/Board of Regents. Nietzel will be the first recipient of the chair in recognition of his work.
Board President Mary Sheid, West Plains, said establishing the chair was consistent with three of the university's guiding principles.
"First, since Dr. Nietzel arrived, we have more than tripled the number of endowed positions," said Sheid. "The endowed positions have been used to help attract and retain outstanding faculty, and we certainly want to keep Dr. Nietzel as our president.
"Second, in our long-range plan, we state our desire to raise the salaries of our faculty and staff to national averages. The Leadership Chair will help us keep the president's compensation, both now and in the future, at a competitive level.
"And third, the university's new compensation system is based on merit, and the Leadership Chair will be awarded based on performance."

The Missouri State Leadership Chair will be awarded for a two-year term with annual reviews and the opportunity to renew for additional two-year periods. The earnings from the principal of the endowed position, currently paid at 4.5 percent, can be used at the recipient's discretion. The chair is being established initially with commitments of approximately $250,000, according to Sheid.
That means Dr. Nietzel will receive $11,250 from the position to do with as he sees fit.

"Not only is this a way in which we can recognize the outstanding work of Dr. Nietzel," said Sheid, "but somewhere in the future when Dr. Nietzel retires, this chair will help us attract the best possible candidate to be the next president of Missouri State. That was one of the Board's goals in establishing the chair."

In its evaluation, the Board was unanimous in its praise for Nietzel again for 2007-08.

Nietzel began July 1, 2005, as Missouri State's ninth president. He came to Missouri State from being provost at the University of Kentucky.
Nietzel had been at the University of Kentucky for 32 years. He was named provost of the University of Kentucky on Nov. 1, 2002. Nietzel was also professor of psychology at the University of Kentucky. He held a joint appointment on the faculty of the University of Kentucky College of Law.