Governors' salaries are absurd—but not for the reason you think

This commentary was originally published by the Indiana Capital Chronicle.

What is the market rate for a governor? Well, it depends on the market of course. In New York, the rate is $250,000 a year. In Maine, it’s $70,000. That makes perfect sense, doesn’t it? These two states might as well be on two different planets after all. It takes five whole hours to drive from Albany to Augusta, a lovely drive that weaves around Boston, where the Massachusetts governor makes $185,000, before the path follows a stretch along the Atlantic coast.

The real answer is there is no “market,” and therefore, there is no “market rate.” 

Whitney Downard reported last week for the Indiana Capital Chronicle the details on the new salaries of several Hoosier statewide elected officials. They are hefty raises, featuring the new salary of the governor, of $221,024, making it one of the highest paid in the nation. One market-based argument as to why that is outrageously high could be that the Indiana governor is constitutionally weak and should therefore be compensated weakly.  

But let’s be serious. The new salary is still pretty low when considering the demands of the job. So is New York’s. And Maine’s? That salary is absurd. 

However, and if I could scream that word I would, being elected to a high-profile position absolutely creates opportunity. It’s just difficult to quantify. These jobs aren’t really jobs. Yes, if done even remotely well, they are work, and a lot of it. But in a market sense, they are more aptly described as “platforms,” not occupations. And so, the salary matters far less than it otherwise would.

Gov. Eric Holcomb will end his second term at the end of the year, never receiving the new salary. Tough break, guv. But there will be opportunity for him when his political career is over, assuming this is the end of that. I predict he will do quite well, probably through some sort of “job,” coupled with other income-generating ventures that are minimally reported but highly profitable. After a long career of low and modestly paid political positions, he knows people, he has skills and value, and this is America. Following his post-governor life would be important to Hoosiers, if for no other reason, to contextualize what serving as governor is truly worth. 

These salaries, while they are specifically what taxpayers finance, don’t mean much in the end. 

Mike Braun, the GOP nominee for governor, had a net worth of $136 million in 2018, according to Open Secrets. It’s a complicated number, and likely incorrect, but it does illustrate that he doesn’t need the new, beefed up salary. He doesn’t need the U.S. Senate salary he currently receives either. When he chose to run for the Senate in 2018, the personal money he spent on and loaned to his campaign got some coverage. To summarize, he didn’t risk anything to run. 

Similarly, J.B. Pritzker risked even less when he ran for governor in Illinois. He’s worth $3.7 billion. 

Filthy Rich Politicians is a 2023 book by Matt Lewis that discusses America’s current situation. The book focuses primarily on members of Congress, which is made up of people who are often already rich, and almost always get richer while in office. The Guardian reviewed the book last year and included some of Lewis’s proposals for change. They include a restriction on stock trading, and interestingly an increase in congressional pay. That increase would theoretically remove or soften the attraction to make money through other means, but it is a symbolic gesture. 

The most important proposal Lewis makes is to raise transparency. I guess. 

Knowing that a candidate or an office holder is filthy rich while seeking public office makes a difference to me. I have grown tired of the trend, and I believe it has degraded representation in government in a broad, general way. Imagine if it reversed? Imagine if the rags-to-public-office story of Rep. Alexandria Ocasio-Cortez was commonplace instead of the riches-to-riches Pritzker/Braun story? 

AOC will be rich, if she’s not already, because her platform has led to a brand and her brand is valuable. Brutal transparency in her case would be fascinating to watch on a year-to-year basis. That story would be every bit as informing as those of the litany of Ivy Leaguers, trust fund kids, and the rest of the privileged elite that jam our public offices. 

The salaries just don’t define the public office market today. And objecting to pay raises for these jobs is an empty gesture. 

Indianapolis Mayor Joe Hogsett, for example, has been adamant about keeping his $95,000 salary exactly as it is. That’s what the governor of Arizona makes. It’s an irrelevant number to anyone in either job. Let’s stop pretending otherwise. 

Michael Leppert is an author, educator and a communication consultant in Indianapolis.

Note: The headline on this story was authored by Route Fifty.