REGENTS BACK EMBATTLED DYNES
BY ANNE BURKE
Today Staff Writer
The UC Board of Regents has affirmed support for Robert C. Dynes, entrusting the embattled UC president to guide the University through a massive overhaul of compensation practices.
“Taking all things into account, the regents are convinced that President Dynes can correct the compensation problems confronting us and will implement a long-range vision for the University that ensures both its continuing academic quality and its ability to meet the needs of California and its people,” the board said in a statement issued during a regents’ meeting in San Francisco on May 18.
At the same time, the regents held Dynes accountable for the crisis over improper pay practices and warned the president of close scrutiny as he moves forward to correct problems.
An internal audit released during the three-day session found dozens of cases in which senior managers received compensation exceeding the amounts authorized in UC policy or without necessary approval from the regents. One egregious case involved a $187,500 housing allowance for a senior manager who also received a relocation allowance for a move within the state.
Later in the day, the UC general counsel disclosed that UC paid out about $23 million in separation agreements involving 700 employees from 2001-05. The settlements involved a number of situations. In some cases, employees had grievances. In others, administrators believed it was in UC’s best interests for employees to leave, but had no cause for terminating them. In still others, employees were being laid off through no fault of their own. A new policy now requires regental approval for separation and settlement agreements of $100,000 or more, and the president’s approval for those of less than $100,000.
In a dramatic exchange, a seemingly angry Gerald Parsky, chairman of the board, gave Dynes a stern dressing-down for failing to do anything about a “culture of secrecy” surrounding the granting of certain perks and bonuses for senior managers.
“This will not happen again, not anymore,” Dynes vowed.
Seeking to explain how regents were kept in the dark about compensation that exceeded proscribed limits, Dynes said that when he took office in 2003, pay practices for senior managers were ruled by a “climate of exceptions and trying to get away with as much as possible and disclose as little as possible.”
The president said the culture of secrecy is so deeply embedded that he will not be able to end it by himself. “I am going to need your help to do it,” he said, “because it really is a sea change.”
The regents announced three measures designed to correct compensation problems: a restructuring of the Office of the President; a new committee to oversee compensation matters and assure that future actions are transparent, accountable and fair; and a new office that will oversee compliance across the system. It will report to the regents.
The day before, the regents heard Dynes present a five-step plan in which he vowed to establish a new working relationship with the regents, assure public disclosure, invest in a human resources information system, change the culture of secrecy and ensure compliance with principles adopted in 1993. The regents reacted favorably to Dynes’ plan.
To see the audit report released last week, go to: www.universityofcalifornia.edu/regents.
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