The University of California is pursuing additional policy reforms in the area of senior management compensation even as it awaits the results of an independent audit and task force policy review, UC President Robert C. Dynes told the Board of Regents today (Wednesday).
 
First, Dynes said the university will be adopting new controls on the approval of capital projects for the residences and offices of the chancellors and president.
 
Dynes had proposed that capital projects for the chancellors' residences and offices costing in excess of $10,000 require the approval of the president, and that for projects on the president's residence or office costing in excess of $10,000, the approval of the regents be required. Members of the regents? Committee on Grounds and Buildings heard the proposal Tuesday afternoon and suggested a threshold of $25,000, given current costs of construction. 
 
The $25,000 presidential approval threshold for the chancellors will be implemented immediately, and the $25,000 regental approval threshold for the president will be brought back to the regents for ratification at the May meeting. (Any projects exceeding the threshold in the meantime also would be brought to the regents for approval.) The board also will receive an annual report on all approved capital projects at the chancellors' residences and offices.
 
Second, Dynes highlighted a proposal he is bringing to the regents for action tomorrow (March 16) placing new conditions on negotiated terms of separation for UC employees. Under the policy, the terms of separation negotiated with an individual employee -- at the time of hiring, for example -- would be subject to reduction or elimination if the president, in consultation with the C general counsel, determined that the employee had violated UC policy or applicable law.
 
"These are important steps to take to establish appropriate controls over our compensation systems," Dynes said. "We --both the administration and the regents -- are focused very intently on fixing the problems that have been identified in our compensation policies and practices. We take these issues very seriously, and our efforts to address them are moving ahead."
 
The steps come on top of a number of actions UC has taken to review and reform its compensation policies and practices, including:
 
- The launching of an external audit by PricewaterhouseCoopers of senior manager compensation and departure agreements over a 10-year period;

- The appointment of distinguished representatives from business, government, media and education to a task force reviewing UC compensation policies and practices and making recommendations to the Board of Regents for reforms;

- The creation of a regents' committee on compensation to provide ongoing oversight;

- The adoption of an interim regents' policy requiring regental approval of separation agreements for specified positions or above a specified dollar threshold; and

- The adoption of new interim rules requiring that any exceptions to compensation policy for senior managers be made only by the president in consultation with the regents.
 
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