University of Kentucky President Eli Capilouto has refused a request by the university senate to cut pay and benefits for top administrators.
The Lexington Herald-Leader reports that during a lengthy meeting with faculty on Monday, Capilouto did agree not to give a special retirement benefit to future hires, but declined to drop it for current administrators.
The benefit gives administrators the equivalent of 15 percent of their salaries for their retirement accounts.
It has cost the school about $1.5 million since 2006.
UK spokesman Jay Blanton said Capilouto decided against cutting the benefit for current recipients because he believes in not going back on incentives that have already been promised.
The compromise did not placate university employees concerned about budget cuts and layoffs.