University of California President Robert C. Dynes today (May 1) announced the first of a series of actions to address issues raised last week by the independent PricewaterhouseCoopers audit of senior management compensation at UC.

Dynes announced that in order to correct administrative errors by the University, he and 19 other senior managers would receive corrected W-2 forms (Form W-2c) for benefits that the University did not properly report as taxable compensation. The audit covered a 10-year period.

Dynes’ compensation includes imputed income for portions of two years after Dynes became president, during which his wife, a UC San Diego physics professor, resided in the chancellor’s residence at UC San Diego while awaiting the construction of new laboratory space on the Berkeley campus.

Dynes stressed that the corrected W-2s reflect administrative errors by the University – not any wrongdoing on the part of the senior managers who received the untaxed benefits.

In some cases, the errors involve overstatements of taxable gross income or medical and 403(b) contributions, so the senior managers paid more in taxes than were required. Others involve failure to include leased automobiles, temporary housing or life insurance in certain W-2s.

“This is a first step,” said Dynes. “Our goal is to take deliberate action to address all the findings. As we learn of new problems in the additional audits to be released in the days and weeks ahead, we will act to correct the deficiencies.

“We must return our focus to the University’s teaching and research missions,” he continued, “even as we implement policies and practices to ensure that this will not happen again.”

Dynes explained that he was acting only on those matters over which he has clear authority. Because other matters require the approval or concurrence of the Regents, Dynes said he intends to develop options to be presented to them for consideration at their meeting on May 17-18.

“Where I cannot act, I am confident the Regents will,” Dynes said.

Actions by Dynes also include a request to former Lawrence Berkeley National Laboratory Director Charles Shank to honor the terms of his recent sabbatical, either by returning to University service for the required one-year term or refunding the salary received for the period of his sabbatical.

The text of the sabbatical policy is available online at www.ucop.edu/acadadv/acadpers/apm/apm-740.pdf

“The University’s expectation that former Director Shank comply with University policy in no way is intended to diminish or detract from his excellent and dedicated service to the University over the 15 years he served as Laboratory director,” said Dynes.

For other compensation-related actions taken by President Dynes: www.universityofcalifornia.edu/news/2006/apr17.html

For the full PricewaterhouseCoopers audit report:
www.universityofcalifornia.edu/news/compensation/audits.html

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