Feb 12, 2012 | 03:12
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Jan 14, 2009
Regents freeze senior managers' pay, reduce freshman enrollment
The UC regents unanimously approved Jan. 14 a proposal by UC President Mark G. Yudof to freeze the salaries of 285 top UC administrators from now through 2009-10. This group includes the president, chancellors, vice chancellors and medical center CEOs, among others.
In addition, these 285 individuals will not be considered for merit, equity and retention increases. The board also voted to significantly restrict compensation for a larger group of senior leaders through the 2009-10 fiscal year. Scattered in 13 different locations around the state and out of state, the regents voted on Yudof's plan via a teleconference.
The pay freeze was one of two actions UC regents took Wednesday as a result of continued shortfalls in state funding. They also voted to reduce
enrollment of new California resident freshmen by 2,300 students systemwide, but allow transfer enrollment to increase by 500 students. Freshman enrollment at UCLA and UC Berkeley will not be affected because of high demand. But 2009 freshman enrollment at UCLA will not exceed 2008 levels, according to admissions officials.
While the proposal to curtail enrollment sparked much discussion among the regents, the plan to freeze senior management pay elicited very little discussion before regents unanimously supported the measure.
While the plan does carry the risk of losing skilled senior administrators who might go elsewhere, Yudof told the regents, the pain of deep budget cuts needs to be shared. "I really feel it's time for us to make the sacrifice. If the pressure is on the student body … if the pressure is on fees, then to show moral leadership, we need to make sure that our senior salaries are under control."
The plan does make provisions for stipends or promotional increases in cases, for example, where a senior administrator is offered a new position within UC with increased responsibilities. But each case will be subject to review by the president and approval by the regents.
This action follows the recent suspension of merit and equity increases for senior managers and senior professional staff, and is the latest in a series of actions taken to deal with a significant funding shortfall. Estimated savings due to the elimination of the merit/equity program for senior managers is approximately $1.3 million per year.
In addition to freezing salaries for senior managers, there will be restrictions on the university's systemwide employee recognition and development program, and similar campus-based bonus programs.
Pending payments for senior management group members and others with annual salaries in excess of $205,000 will be canceled. The plan also restricts any cash awards under this program for 2008-09 and 2009-10, by, limiting participation to non-senior management staff whose annual salaries are less than $100,000, and limiting those awards to no more than $1,000 total in any year.
Only certain incentive plans, such as the regentally approved Clinical Enterprise Management Recognition Plan involving key hospital and clinical leadership positions, will be continued. The Clinical Enterprise Management Recognition Plan is supported by hospital revenues and does not involve state funding.
In addition, these 285 individuals will not be considered for merit, equity and retention increases. The board also voted to significantly restrict compensation for a larger group of senior leaders through the 2009-10 fiscal year. Scattered in 13 different locations around the state and out of state, the regents voted on Yudof's plan via a teleconference.
The pay freeze was one of two actions UC regents took Wednesday as a result of continued shortfalls in state funding. They also voted to reduce
enrollment of new California resident freshmen by 2,300 students systemwide, but allow transfer enrollment to increase by 500 students. Freshman enrollment at UCLA and UC Berkeley will not be affected because of high demand. But 2009 freshman enrollment at UCLA will not exceed 2008 levels, according to admissions officials. While the proposal to curtail enrollment sparked much discussion among the regents, the plan to freeze senior management pay elicited very little discussion before regents unanimously supported the measure.
While the plan does carry the risk of losing skilled senior administrators who might go elsewhere, Yudof told the regents, the pain of deep budget cuts needs to be shared. "I really feel it's time for us to make the sacrifice. If the pressure is on the student body … if the pressure is on fees, then to show moral leadership, we need to make sure that our senior salaries are under control."
The plan does make provisions for stipends or promotional increases in cases, for example, where a senior administrator is offered a new position within UC with increased responsibilities. But each case will be subject to review by the president and approval by the regents.
This action follows the recent suspension of merit and equity increases for senior managers and senior professional staff, and is the latest in a series of actions taken to deal with a significant funding shortfall. Estimated savings due to the elimination of the merit/equity program for senior managers is approximately $1.3 million per year.
In addition to freezing salaries for senior managers, there will be restrictions on the university's systemwide employee recognition and development program, and similar campus-based bonus programs.
Pending payments for senior management group members and others with annual salaries in excess of $205,000 will be canceled. The plan also restricts any cash awards under this program for 2008-09 and 2009-10, by, limiting participation to non-senior management staff whose annual salaries are less than $100,000, and limiting those awards to no more than $1,000 total in any year.
Only certain incentive plans, such as the regentally approved Clinical Enterprise Management Recognition Plan involving key hospital and clinical leadership positions, will be continued. The Clinical Enterprise Management Recognition Plan is supported by hospital revenues and does not involve state funding.
"These are extremely difficult times, and we must make difficult decisions," said Yudof in a statement released last week. "Although I regret very much the impact of these actions on our very dedicated and valuable employees, I believe they are consistent with our obligation as a public institution, and are warranted given the historic economic crisis confronting us."
To read more, go to this website.
