Presidential Compensation Adjustment

Transcription

1 Presidential Compensation Adjustment BACKGROUND Under ORS 32.09, the Board of Trustees is to prescribe the President s compensation and terms and conditions of employment. In January 20, the Board approved a Presidential Compensation Philosophy to guide those decisions. COMPENSATION REVIEW Under its Presidential Compensation Philosophy, the Board set a goal to provide competitive compensation for the President after comparing the President s compensation with presidential compensation at peer institutions of higher learning and considering the length of service and performance of the President. In addition, under the Presidential Compensation Philosophy, the Board reviews each compensation proposal to ensure that compensation and benefits are determined and paid in a manner in compliance with applicable law, and the Board maintains a record of the basis for its decision. Compensation Proposal Given the October 20 comprehensive assessment of the President and January 207 merit raises that were approved for other OSU unclassified employees, it is timely to review the President s compensation. President Ray s total annual compensation is $99,874, composed of a base salary from OSU of $307,332 and a base salary supplement of $237,29 and supplemental retirement plan contribution (previously referred to as deferred compensation ) of $,273, both funded by the OSU Foundation. The President s current compensation reflects a 3% increase that was approved by the Board and the OSU Foundation Board effective January, 20. President Ray donated all of this increase to benefit scholarships and student programs established in conjunction with his late wife, Beth. Since this increase was effective for only half of the year, President Ray s actual compensation was $89,8. In December 20, the university approved merit increases for staff and faculty up to a maximum of %. A merit increase of % for President Ray for FY207 would provide a total annual compensation of $74,87, assuming a base salary of $32,77 and a base salary supplement of $2,08 and supplemental retirement contribution of $4,92 from the Foundation. If the adjustment is effective January, 207, his actual FY207 compensation would be $720,87 (base salary $3,4; base salary supplement $244,388.0; supplemental retirement contribution $9,932.0). It should be noted that the University of Oregon is currently reviewing the benefits cap for the supplemental retirement account to ensure that the combined annual life-time annuity benefits generated from the supplemental retirement contributions and from the Public Employee Retirement System do not exceed the Internal Revenue Service annual maximum for defined benefit plans when the President retires. Based on this analysis, any contribution for FY207 in excess of this amount would be shifted to base salary supplement or another retirement plan option based on further advice from counsel and retirement plan administrators. Executive & Audit Committee Page

2 Peer Comparison To support the Board s review of the President s compensation, Attachment provides compensation data for university presidents from three comparator groups: a set of national comparator institutions, peer institutions Oregon State used for planning and benchmarking in Strategic Plan 3.0 (SP3.0), and Pac-2 Conference institutions. Compensation data reported by institutions are provided by the Chronicle of Higher Education. compensation data are not yet available, so total compensation for is calculated using base pay, bonus pay, deferred compensation paid, and deferred compensation set aside as reported for and applying the 2.3% aging factor used by the College & University Professional Association (CUPA). Severance pay, housing, transportation, and standard pension or retirement contributions are not included in the comparison due to inconsistent reporting of these elements among institutions. Please note that a 2.3% aging factor is used for consistency with CUPA practices; however, a review of increases from FY204 to for available data at national, SP3.0 peer, and Pac-2 institutions shows average increases in compensation ranging from % to 9%. Length of Service and Performance President Ray has one of the longest tenures of service in his position among peer comparator universities, having served 3 years compared to the average of seven years of service at national comparator institutions and Pac-2 institutions and an average of five years of service at SP3.0 peer institutions. The President s outstanding service to the university was highlighted in the comprehensive assessment of his performance completed by the Board in October 20. This 30-degree review included extensive input through surveys and interviews from a broad range of internal and external participants. Input from the surveys and interviews addressed the President s strategic and educational leadership, organizational and fiscal management, fundraising activities, external and internal relations, and personal characteristics and values. Feedback was highly positive across all of these categories. Participants described President Ray as a strategic and collaborative leader who seeks broad input in his decision-making. His genuine and direct approach was among the qualities noted as helping him build trust, respect, and credibility within OSU and with external constituencies. He was noted as particularly effective in his efforts related to student success and implementing SP3.0 and his commitment to diversity. In addition to reviewing this input, the Board reviewed the President s self-assessment report and proposed agenda for FY207, noting the university s progress toward meeting 207/8 targets for a number of SP3.0 metrics. NEXT STEPS The Executive & Audit Committee will review the FY207 proposal for the President s compensation and may recommend an adjustment in compensation to the Board. Adjustments in compensation provided by the OSU Foundation would be subject to approval by the OSU Foundation Board. Executive & Audit Committee Page 2

3 Attachment position through end of Dec 20 4 Land-grant Pac-2 Base Comp. Deferred Comp., Set Aside, & Bonus Pay Total Comp. Total Comp Kim A. Wilcox UC-Riverside 3 379, ,7 387,878. Henry T. Yang UC-Santa Barbara 22 37,330,70 390, ,89. Philip DiStefano University of Colorado-Boulder 7 X 43,2 0,000 44,2 4,40 4. David L. Boren University of Oklahoma-Norman , ,203 42, Harvey S. Perlman University of Nebraska-Lincoln X 38,48 79, ,98 48, Kirk H. Schulz Kansas State University 7 X 4,9 0 4,9 477,9. Timothy D. Sands Virginia Tech University 2 X 00, ,000,00 0. Kumble R. Subbaswamy University of Massachusetts 4 X 39,034,239,273 23, Ann Weaver Hart University of Arizona 4 X X 47,000 40,000,000 2,84 8. Anthony A. Frank Colorado State University 8 X 47,03 0,000 2,03 33, Bernadette Gray-Little University of Kansas 7 00,040 2,000 2,040 37,. M. Roy Wilson Wayne State University 3 48,97 99,000 84,97 97,34. James R. Ramsey University of Louisville 4 48,9 0 48,9 3, Satish Tripathi SUNY (Buffalo) 7, ,700 72, Ed Ray Oregon State University 3 X X 28,739 0,70 79,489 89,8 2. Steven Leath Iowa State University 4 X 00,000 39,4 89,4 9,07. G.P. (Bud) Peterson Georgia Institute of Technology 7 7,980 4,,093,4,8, Michael K. Young Texas A&M University X 333, ,000,33, Elson Floyd 7 Washington State University 7 X X 708,9 49,2 87, Patrick T. Harker 8 University of Delaware 8 X 97,437 43,70 84, Scott L. Coltrane 9 University of Oregon 2 X 394,8 89,83 484, John E. Thrasher 0 Florida State University 2 2,94 39,293 30, Robert W. Bley-Vroman University of Hawaii-Manoa 2 X 27,0 0 27, Source: Chronicle of Higher Education. 3 total comp calculated using 2.3% annual aging factor used by CUPA. comp for Ed Ray is based on actual for base comp and deferred comp. 4 Total years in service assumes that existing contracts carry forward through December 20, unless noted as an interim appointment of specific duration. Presidential Compensation for National Comparator s Ranked by Total Compensation,2,3 College & University Professional Association (CUPA) National Scope "cut" for OSU: Public, Carnegie Classification: Very High Research Activity, Total Operating Budget: 0-0% of OSU; Student FTE: 0-0% of OSU Total Comp includes base pay, bonus pay, deferred compensation paid and deferred compensation set-aside. Severance pay, housing, transportation, and standard pension or retirement contributions are not included in the comparison due to inconsistent reporting of these elements among institutions. Young: Partial-year (data provides 4 months partial year salary; Feb 20 start date; currently in position. Annualized base salary is $ million.) 7 Floyd: President through June 20; Kirk Schulz was hired as president on June 3, 20 with a base pay of $2,000 with a $2,000 per year additional retention incentive. 8 Harker: Full-year data reported; contract ended Jun Coltrane: Interim Partial-Year (data provides months partial year salary; Michael Schill has held the position since July 20 with an total compensation of $798,400) 0 Thrasher: Partial-year (data provides 9 months partial year salary reported; Nov 204 start date; currently in position) Bley-Vroman: Partial-year (data provides 0 months partial year salary reported; Sept 204 start date; currently in position) Executive & Audit Committee Page 3

4 position 3 Land-grant Pac-2 Base Comp. Deferred Comp., Set Aside, & Bonus Total Comp. 4 Total Comp. 2. Kim A. Wilcox University of California-Riverside 2 X 379, ,7 387, Linda P.B. Katehi University of California-Davis 7 X 42, ,000 42,47 9. Jimmy G. Cheek University of Tennessee-Knoxville 7 X 434, ,42 444, Rebecca M. Blank University of Wisconsin-Madison 3 X 499, ,90, Anthony A. Frank Colorado State University 7 X 47,03 0,000 2,03 33,088. Mitchell E. Daniels Jr. Purdue University 3 X 420,000 0,880 30,880 43,090. W. Randolph Woodson North Carolina State Univ-Raleigh X 20,000 2,000 72,000 8, 4. Edward J. Ray Oregon State University 3 X X 28,739 0,70 79,489 89,8 3. Eric J. Barron Pennsylvania State Univ-University Park 2 X 800, ,000 88, Steven Leath Iowa State University 4 X 00,000 39,4 89,4 9,07. Michael V. Drake Ohio State University 2 X 800,000 20,70,00,70,08,02 -- Elson Floyd Washington State University 7 X X 708,9 49,2 87, W. Kent Fuchs University of Florida X 430,000 7,000 0, Phyllis M. Wise 7 University of Illinois-Urbana-Champaign 4 X 4,7 8,333 4, Source: Chronicle of Higher Education. 2 total comp calculated using 2.3% annual aging factor used by CUPA. total comp for Ed Ray uses base comp and deferred comp actuals and estimated retirement. 3 Total years in service assumes that existing contracts carry forward through December 20, unless noted as an interim appointment of specific duration. 4 Presidential Compensation Among Peer s For Planning and Benchmarking in Strategic Plan 3.0 Ranked by Total Compensation,2 Total Comp includes base pay, bonus pay, deferred compensation paid, and deferred compensation set-aside. Severance pay, housing, transportation, and standard pension or retirement contributions are not included in the comparison due to inconsistent reporting of these elements among institutions. Floyd: President through June 20; Kirk Schulz was hired as president on June 3, 20 with a base pay of $2,000 with a $2,000 per year additional retention incentive. Fuchs: Started January 20 (not clear whether reported total represents annual or partial year compensation; currently in position) 7 Wise: Partial-year (data provides month of salary reported; based on annual salary/comp $49,09); Robert J. Jones was hired as president as of September 2, 20 Executive & Audit Committee Page 4

5 Presidential Compensation for Pac-2 Universities Ranked by Total Compensation,2 position 3 Land-grant Base Comp. Deferred Comp., Set Aside, & Bonus Pay Total Comp. 4 Total Comp Gene D. Block University of California at Los Angeles 9 428, , ,33 8. Philip DiStefano University of Colorado-Boulder 7 43,2 0,000 44,2 4,40 7. Nicholas B. Dirks University of California at Berkeley 3 X 0, ,404 2,93. Ann Weaver Hart University of Arizona 4 X 47,000 40,000,000 2,84. Ed Ray Oregon State University 3 X 28,739 0,70 79,489 89,8 4. Michael M. Crow Arizona State University 4,200 42,00 803, , David W. Pershing University of Utah 4 402,000 40,30 82,30 87, John L. Hennessy Stanford University 8 884,7 24,98,099,70,2,044. C.L. Max Nikias University Southern California 8,08,97 49,4,8,242,9, Ana Mari Cauce University of Washington 72, , Scott L. Coltrane University of Oregon 394,8 89,83 484, Elson Floyd 7 Washington State University 7 X 708,9 49,2 87, Source: Chronicle of Higher Education. 2 total comp calculated using 2.3% annual aging factor used by CUPA. total comp for Ed Ray uses base comp and deferred comp actuals and estimated retirement. 3 Total years in service assumes that existing contracts carry forward through December 20, unless noted as an interim appointment of specific duration. 4 Cauce: Interim Partial-year (data provides 4 months partial year salary reported) Coltrane: Interim Partial-Year (data provides months partial year salary; Michael Schill has held the position since July 20 with an total compensation of $798,400) 7 Total Comp includes base pay, bonus pay, deferred compensation paid and deferred compensation set-aside. Severance pay, housing, transportation, and standard pension or retirement contributions are not included in the comparison due to inconsistent reporting of these elements among institutions. Floyd: President through June 20; Kirk Schulz was hired as president on June 3, 20 with a base pay of $2,000 with a $2,000 per year additional retention incentive. 8 Private universities report by calendar year. Executive & Audit Committee Page