This paper scrutinises the escalating salaries of US college and university presidents (vice-chancellors, or rectors, as they might be known in other parts of the world). Some research suggests that presidential pay is largely correlated with factors that have little or nothing to do with performance and may, therefore, overstate the benefit that presidents bring to their institutions while giving too little consideration to the costs. The paper also discusses presidential pay in the broader socioeconomic context, summarises available research findings and suggests ways institutions might strengthen the link between pay and performance in order to broaden the talent pool of capable institutional leaders.