Former Columbia University Dean Nicholas Dirks will assume the top job at U-C Berkeley.
But UC Regents also approved a salary of almost $487-thousand for Dirks, $50-thousand more than the outgoing chancellor earned.
California Governor Jerry Brown says he promised voters that he would use funds wisely if his Proposition 30 tax initiative passed.
He says the compensation package doesn't show restraint.
GOVERNOR BROWN: "I believe a 50-thousand dollar increase from the incumbent, even though that incumbent has not received a pay raise, does not fit within the spirit of servant leadership that I think will be required over the next several years."
Other U-C Regents say the chancellor's salary is well below average and in the bottom third of all compensation for the nation's top research universities.
The Governor did approve of Dirks' appointment.