Indiana University has a budget of $3 billion which it uses to operate eight campuses and 7000 faculties, employing 11,000 staff and educating 115,000 students.

But Professor McRobbie started his academic career as a bright-eyed PhD candidate at the Australian National University in 1974 - fascinated with logic and computing and lured from the University of Queensland by the ANU's preeminent academics and beautiful campus.

He was awarded one of the university's highest honours – Alumnus of the Year – on Saturday night.

Following in the footsteps of Therese Rein and NSW Art Gallery director Michael Brand, who were last year's joint winners,

Professor McRobbie said it was an honour to be recognised by his alma mater for his work in international higher education and the revitalisation of Indiana University.

Completing his PhD in logic at ANU in 1979, Professor McRobbie held post-doctoral positions before returning to ANU as a research fellow, reader and then professor from 1990 to 1996.

In 2009, as president of Indiana University, Professor McRobbie signed an agreement with the ANU to create the jointly-operated Pan Asia Institute – an institute he said was playing a vital role today in promoting research and learning across Asia.

Last night's Alumni Award also recognised commodities trader Graham Tuckwell for his philanthropic gift of $50 million to establish the Tuckwell Scholarships.

Professor McRobbie said he had been personally moved by Mr Tuckwell's gift and had written as a former alumni to thank him when the donation was made in 2012.

In the United States, philanthropy played a massive part in university business – with Indiana University drawing almost 10 per cent of its funding from former students who had gone on to forge successful careers and wanted to give something back to their universities.

"It is not as embedded in Australia but in the US philanthropy is a standard and very important part of what we do as university leaders."

Just this week he announced his university was receiving a $20 million gift from former graduate and businessman Lowell E Baier.

ANU vice-chancellor Ian Young said Professor McRobbie was the stand-out of all finalists in the category due to his international reputation as a global leader in higher education.