I understand the frustration of members of the Legislature, and I am committed to full accountability and transparency at the University of California. More importantly, I have taken action to begin rectifying the University’s compensation problems and prevent them from happening again. These actions include:Immediate and full disclosure of executive compensation decisions by the Regents. A requirement that all exceptions to compensation policy for senior managers receive my approval in consultation with the Regents, as an interim policy. A requirement that all separation agreements for key positions or with a value of more than $100,000 be approved by the Regents, as an interim policy. A requirement that the general counsel and vice president for financial management review all presidential offers of employment before they are made. A requirement that renovations to chancellors’ residences and offices costing in excess of $25,000 receive the approval of the president, with Regents’ approval required for projects on the president’s residence or office costing in excess of $25,000. Training for executives to ensure compliance with University policies. Ethics training for all UC employees, including communications about existing whistleblower programs and anti-retaliation policies. Appointment of a central coordinator for Public Records Act requests coming in to the Office of the President. Establishment of an Implementation Committee to recommend action on the policy issues raised by the Task Force on UC Compensation, Accountability, and Transparency. Development of a modern, comprehensive, integrated human resources information system for executive compensation. Issuance of corrected W-2 forms for 20 senior managers, including myself, to reflect benefits that the University did not properly report as taxable compensation.
In addition, with the Regents, we have a process underway to achieve fundamental and long-lasting reform. That process consists, first, of examining the findings of the audits and reviews that both the University and the state have commissioned -- the most exhaustive and complete review of UC compensation ever conducted. And second, it consists of working with the Regents at their May meeting to begin adopting long-lasting corrective actions.
I am committed to action and to reform. We must act with speed, but we must also act in an informed, thoughtful, fair manner if we are to achieve solutions that will truly last.
I believe very strongly that the University of California is, first and foremost, a public institution. Its mission is to serve the public, and its success depends upon the support of the public. The actions I have taken reflect my commitment to that public mission, and our next steps forward will likewise be guided by our clearly understood obligations to the people of California.
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More details on President Dynes’ previously announced actions on compensation matters are available at www.universityofcalifornia.edu/news/2006/apr17.html and www.universityofcalifornia.edu/news/2006/may01.html. UC’s web site on compensation issues is at www.universityofcalifornia.edu/news/compensation/.