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‘Lavish’ CEO Pay at For-Profit Colleges Targeted by Lawmaker

Executive pay at for-profit colleges is being investigated by the ranking member of a congressional oversight committee, who said “lavish” compensation at the schools bears little relationship to academic well-being.

Representative Elijah Cummings, the top Democrat on the House Oversight and Government Reform Committee, sent letters asking to see pay agreements from 13 companies, including Apollo Group Inc., Strayer Education Inc. and Washington Post Co.’s Kaplan unit. Cummings cited a 2010 Bloomberg article that showed executives at the 15 U.S. publicly traded colleges received compensation that exceeded traditional colleges and collected $2 billion from selling stock over the previous seven years.