UC policy for salary and appointments of senior management group (SMG) positions requires that compensation be reviewed and approved by the regents. Salary and appointments of non-SMG, non-academic employees whose total compensation is higher than $214,000 and whose actions are approved by campuses or other UC locations must be reported to the regents in the next bi-monthly report following approval of the action.
The following appointments and compensation were approved by the UC Board of Regents today (Sept. 16):
UC HEALTH SCIENCES
Clinical Enterprise Management Recognition Plan
Before the beginning of each fiscal year, the five UC medical centers establish a series of financial and non-financial measures consistent with the mission and goals of each clinical enterprise and those of the system. The measures, commonly used among medical enterprises as a way of driving performance improvements, are quality improvements; financial performance; patient satisfaction; management of people and other resources; and key achievements against the strategic plan. The systemwide goals established for fiscal year 2009-10 included: 1) working with the federal government to negotiate a fair reimbursement for UC's treatment of the uninsured, 2) improving operating efficiencies through supply chain improvements, and 3) reducing line-associated bloodstream infection rates, as a patient safety metric. The medical enterprise has been successful in all of these areas. By way of example, the medical enterprise produced a savings of more than $12 million through cost reductions and further reduced the blood infections from 2.2 to 1.4/1,000 lines.
The Clinical Enterprise Management Recognition Plan (CEMRP) is a clinical incentive plan that provides financial awards based on meeting or exceeding targets for quality of care, financial performance and other goals such as patient satisfaction for the Health Sciences & Services System. The plan drives alignment of the five UC medical centers on the achievement of institutional, organizational and individual goals. Eligible participants are defined as the senior leadership of the clinical enterprise who have significant strategic impact and a broad span of control with the ability to affect enterprise-wide change and performance. The incentive award, consistent with the plan approved by the regents, can range from 10 to 30 percent of base salary with a designated target incentive.
It is common practice among UC's competitors to provide incentive opportunities, and CEMRP puts a larger portion of pay at risk than comparator institutions. Parallel clinical incentive programs that are aligned with CEMRP provided incentive opportunities for fiscal year 2009-10 to all levels of employees at the medical centers, including more than 22,000 represented and other staff — nurses, patient care technicians, service and other staff members — thereby ensuring alignment of effort and performance throughout the enterprise.
The president and the independent Administrative Oversight Committee that will administer CEMRP during fiscal year 2010-11 reviewed and approved the proposed CEMRP awards for fiscal year 2009-10, and the president submitted awards for 37 eligible senior management group (SMG) participants for approval by the regents. Incentive awards under all clinical plans, including CEMRP, totaled approximately $32.7 million for fiscal year 2009-10. The awards for SMG participants total $3,131,582, representing 9.57 percent of the overall cost for all clinical incentive plans at the medical centers. These clinical incentive plans are funded exclusively through clinical revenue, and no state funds are used in the payment of these awards.
UC Davis Health System
Shelton J. Duruisseau, Associate Vice Chancellor-Diversity and Inclusion and Chief External Affairs Officer. As part of a comprehensive restructuring and streamlining initiative, the UC Davis Health System is eliminating the School of Medicine's associate dean of diversity position, saving the health system $200,000 per year, and reassigning leadership responsibilities for external affairs and diversity and inclusion. The goals of the restructuring include reducing health care disparities and promoting greater diversity among medical and nursing students, faculty and staff. Moreover, this initiative will result in reduced costs and bureaucracy and create a more streamlined, efficient and integrated academic health center.
Approval was requested for a salary adjustment and title change for Shelton J. Duruisseau. The campus recommended continued SLCG grading at Grade 109 (minimum $214,700, midpoint $274,300, maximum $333,700) and a 4.19 percent salary adjustment from $278,320 to $290,000, effective upon approval by the regents.
The position qualifies for participation in the Clinical Enterprise Management Recognition Plan at an annual target payout of 15 percent ($43,500) and a maximum potential of 25 percent ($72,500). As part of the senior management group, this position qualifies for a 5 percent monthly contribution to the Senior Management Supplemental Benefit program ($14,500 a year). This position is funded 100 percent from non-state funds.
(Questions may be directed to Bonnie Hyatt, UC Davis Health System: 916-734-9045.)
UC Irvine Health Affairs
M. Teresa Conk, Chief Strategy Officer-UC Irvine Health Affairs (CSO). Approval was requested for the appointment of a newly created position of chief strategy officer, effective upon approval by the regents. This position integrates several functions into one entity, eliminating redundancy and aligning strategic efforts. The CSO will be accountable for growing Health Affairs by increasing physician revenues and the number of patients. The cost savings and additional revenues generated from this new position are expected to fully fund the position.
In the recruitment, M. Teresa Conk emerged as the top candidate. Conk brings in-depth knowledge of the Orange County health care community and a solid understanding of national health care issues. She has 20 years of experience in the health care industry. Conk's most recent position was the vice president of business and development and strategic planning at the Children's Hospital of Orange County (CHOC). She also has held positions at St. Joseph Hospital and United Western Medical Centers.
The campus proposed a base salary of $260,000, 6.2 percent higher than the midpoint for SLCG Grade 108 ($192,300 minimum, $244,900 midpoint, $297,400 maximum) and 4.1 percent below the median market salary of $271,026. This compensation package is less than her package at CHOC and is less than the competing offer from another hospital.
The position qualifies for participation in the Clinical Enterprise Management Recognition Plan at an annual target payout of 15 percent ($39,000) and a maximum potential of 25 percent ($65,000). As part of the senior management group, this position qualifies for a 5 percent monthly contribution to the Senior Management Supplemental Benefit program ($13,000 a year). This position is funded 100 percent by UC Irvine Medical Center operating revenue.
(Questions may be directed to John Murray, UC Irvine Healthcare: 714-456-7759.)
UCLA Hospital System
David Feinberg, Associate Vice Chancellor and Chief Executive Officer-UCLA Hospital System. Under the leadership of David Feinberg as associate vice chancellor and chief executive officer, the UCLA Hospital System completed its most successful year in its history in 2008-09, achieving the highest level of performance for the three major performance goals under its annual performance plan. Specifically, the Hospital System leadership and staff achieved an "Outstanding" level of performance for patient quality and safety, patient experience/satisfaction and financial performance. Financial performance exceeded industry standards, a development that serves the broader interest of UCLA Health Sciences because these gains support many academic programs and capital projects.
Dr. Feinberg recently was approached as a potential candidate for a similar chief executive position at a major academic medical center in Northern California. Because of the outstanding leadership that Dr. Feinberg has demonstrated since assuming his executive role, it is essential for the campus to retain him. Thus, the UCLA campus requested approval for a pre-emptive salary adjustment of $160,300, bringing Dr. Feinberg's annual base salary from $739,700 to $900,000, effective July 1, 2010. The proposed salary is 12.4 percent above the 50th percentile ($800,748) of market salaries for teaching hospital system chief executive officers, according to survey data provided by Mercer HR Consulting. Based on size and scope factors of the UCLA Hospital System, the 75th percentile ($887,175) of market salaries is a meaningful reference point. The proposed salary is within SLCG Grade 118 (minimum $585,000, midpoint $760,400, maximum $935,900).
As an exception to policy, the salary is effective retroactively to be consistent with the withdrawal of Dr. Feinberg's candidacy in an outside recruitment effort. Also as an exception to policy, a $250,000 annual non-base-building retention bonus will be paid on June 30 of each fiscal year beginning June 30, 2011, as long as Dr. Feinberg remains an active UC employee serving in the capacity of chief executive officer, UCLA. This retention bonus is characterized as an exception to policy because the position qualifies for participation in the Clinical Enterprise Management Recognition Plan at an annual target payout of 20 percent ($180,000) and a maximum potential of 30 percent ($270,000). Total cash compensation is $1,330,000.
Feinberg is ineligible to participate in the Senior Management Supplemental Benefit Program as a member of tenured faculty, but will accrue sabbatical credits and will qualify for an annual car allowance ($8,916). UCLA's donor community has initiated creation of a $10 million endowed fund, with proceeds directed toward covering the additional compensation associated with Dr. Feinberg's retention.
(Questions may be directed to UCLA Public Affairs: 310-825-2585.)
TREASURER'S OFFICE
Annual Incentive Plan
The Treasurer's Office closed the year with both positive gains and positive relative returns, with the total UC Entity up 10.63 percent for the past fiscal year, and 1.23 percent ahead of the policy benchmark return of 9.40 percent. Both the UC Retirement and Endowment plans delivered strong total returns as well as relative returns over the fiscal year. For the fiscal year 2009-10, the UC Retirement Plan gained 12.72 percent, 1.11 percent ahead of the policy benchmark and the endowment (GEP) climbed 10.87 percent, 1.32 percent ahead of policy benchmark returns. UC's investment portfolios benefited from asset allocation decisions, including limited exposure to real estate, and the investment management team added $672 million of value to the portfolios over and above the benchmark return. Rigorous due diligence allowed portfolios to continue to avoid hedge fund, real estate or private equity "blow-ups." The portfolios maintained liquidity that enabled UC to pay out benefits of $1.98 billion to retirees and avoid other liquidity issues that plagued industry peers.
The president and the independent Administrative Oversight Committee that will administer the Office of the Treasurer's Annual Incentive Plan (AIP) during fiscal year 2010-11 reviewed and approved proposed incentive compensation (non-base building) awards for fiscal year 2009-10. The president submitted proposed awards totaling $1,859,056 million for five eligible senior management group (SMG) participants for approval by the regents: Chief Investment Officer Marie Berggren, $717,275; Associate Chief Investment Officer Melvin Stanton, $311,419; Senior Managing Director-Fixed Income Randolph Wedding, $253,767; Senior Managing Director-Public Equity William Coaker; and Senior Managing Director-Risk Management Jesse Phillips, $323,238. Awards for non-SMG participants totaled $2,379,772. Approved award amounts will be paid out incrementally over a three-year period. The Treasurer's Annual Incentive Plan is funded exclusively through assets, and no state funds are used in the payment of these awards.
Under the Annual Incentive Plan, awards are based largely on the investment results of the portfolios relative to predetermined investment objectives (benchmarks). The investment returns were calculated by State Street and Cambridge Associates, and the returns were used by Mercer Human Resources Consulting to calculate the incentive awards. Calculations were reviewed by UCOP Internal Audit. Plan participants are assigned award levels that serve to motivate individual, group and total entity performance as part of a competitive total cash compensation package. Participants are eligible to receive an incentive award that is based on investment performance and individual performance and contribution.
CAMPUSES, OFFICE OF THE PRESIDENT, LABORATORIES
UC Davis Campus
Charles E. Hess, Interim Vice Chancellor-Research. Approval was requested for the recall from retirement of Charles E. Hess to serve as the interim vice chancellor-research at the UC Davis campus while a national search is conducted. This interim appointment is necessary to provide continuity of leadership and to assist in the transition of a new vice chancellor-research. The chancellor consulted with the chair of the Academic Senate and the Senate Executive Committee, and they wholeheartedly endorsed this appointment. The appointment salary of $237,400 (annualized) will be at an average of 43 percent time over a 12-month period, effective upon approval by the regents. This position is currently graded at SLCG Grade 109 (minimum $214,700, midpoint $274,300, maximum $333,700). Per policy, Hess plans to sign and accept the Rehired Retiree Waiver Form that will serve to decline participation in the UC Retirement System (UCRS) and allow Hess to continue receiving his retirement annuity while receiving compensation related to this appointment. This position is funded 100 percent by state funds.
(Questions may be directed to Mitchel Benson, UC Davis Communications: 530-752 9844.)
UC San Diego Campus
Suresh Subramani, Acting Senior Vice Chancellor-Academic Affairs. In preparation for the retirement of the senior vice chancellor-academic affairs (effective Oct. 1, 2010), an extensive national search was conducted for a successor. A top candidate was identified, but withdrew due to compensation limitations. The request for the appointment of Suresh Subramani as acting senior vice chancellor-academic affairs is to provide continuity of leadership while the search is extended. The appointment is effective Oct. 1, 2010, through Sept. 30, 2011, or until the appointment of a permanent senior vice chancellor, whichever occurs first.
In recognition of the search experience, the market value of the position, internal comparisons and Subramani's qualifications, the campus requests approval of an administrative salary of $350,000. The proposed salary is 1.7 percent above the midpoint of SLCG 111 (Minimum 267,700, Midpoint $344,000, Maximum $420,100) and 5.8 percent below the market median of $371,623. This position is funded 100 percent by state funds.
(Questions may be directed to UC San Diego Communications; phone: 858-534-3120.)
UC Santa Cruz Campus
Alison Galloway, Campus Provost and Executive Vice Chancellor. The Santa Cruz campus requested approval of the appointment of Alison Galloway as campus provost and executive vice chancellor in preparation for the retirement of the current CP/EVC (effective Sept. 15, 2010). A search within the UC system was conducted for this key leadership position, which reports directly to the chancellor and serves as the chief executive officer of the campus when the chancellor is unavailable.
The proposed base salary of this appointment, effective upon approval by the regents, is $265,000, 40 percent below the market median base salary of $371,633 and at the midpoint of SLCG 109 (minimum $214,700, midpoint $274,300, maximum $333,700). The proposed base salary is approximately 14 percent below the average base salary of $303,089 for the executive vice chancellor and provost at the other UC locations. Per policy, Galloway is ineligible to participate in the Senior Management Supplemental Benefit Program as a member of tenured faculty, but will accrue sabbatical credits. This position is funded 100 percent by state funds.
Lynda Rogers, Dean-University Extension. The campus requested the term appointment of Lynda Rogers as dean of University Extension at UC Santa Cruz in anticipation of the vacancy created by the requested appointment of Alison Galloway as campus provost and executive vice chancellor. This term appointment is effective upon approval by the regents through Dec. 31, 2011, or until the appointment of a permanent dean, whichever occurs first.
Rogers has more than 20 years of experience as an educator and administrator. She currently serves as assistant vice provost-University Extension for UC Santa Cruz.
The proposed annual base salary ($145,000) is 6.8 percent below the midpoint for SLCG 104 (minimum $123,800, midpoint $155,600, maximum $187,500), 24 percent below the average base salary ($179,620) for the dean-University Extension at other UC locations, and 28 percent below the market median base salary of $185,177. This position is funded 100 percent by non-state funds.
(Questions may be directed to Jim Burns, UC Santa Cruz Communications: 831-459-2495.)
UC Berkeley Campus
F. Scott Biddy, Vice Chancellor-University Relations. F. Scott Biddy was promoted to his current position of vice chancellor-university relations in December 2006 following a national search. At the time of promotion, he was serving as associate vice chancellor-university relations for the campus. Although internal equity and other pressures limited the promotional increase to an annual base salary of $260,000, Biddy was the sole remaining candidate for a similar position at a peer institution with an oral offer of a salary in excess of $400,000. He indicated that he would accept the promotion if the Berkeley campus could provide a higher compensation package. The campus requested an annual bonus payment of up to $50,000 based on the attainment of established goals. Such bonus programs are common in the development area. Biddy accepted this total compensation package of $310,000 and withdrew his candidacy for the other position. He received the first bonus payment in December 2007.
The Berkeley campus proposed a salary adjustment that does not increase overall compensation, but adds Biddy's performance incentive amount ($50,000) to his current annual base ($272,000), for a total annual salary of $322,000, effective upon approval by the Regents. The proposed annual salary is approximately 14 percent below the market median for this position ($369,345).
Biddy reports directly to the chancellor and is the chief institutional advancement officer for the campus. His leadership of Berkeley's comprehensive capital campaign has raised $1.8 billion to date towards the $3 billion fundraising campaign goal for the campus. This campaign is the largest in UC Berkeley's history, and the largest so far for any university in the United States and Canada without a medical school.
The position remains slotted at SLCG grade 109 (minimum $214,700 midpoint $274,300 maximum $333,700), and is part of the senior management group, qualifying for a 5 percent monthly contribution to the Senior Management Supplemental Benefit program ($16,100 a year) and an annual car allowance ($8,916). The base salary for this position is funded through state funds (50 percent) and discretionary funds (50 percent).
(Questions may be directed to Claire Holmes, UC Berkeley Communications: 510-642-3734.)
UC Office of the President
Deborah Wylie, Associate Vice President-Capital Resources Management. After an extensive national search, approval of this appointment was requested to fill the vacancy created when Associate Vice President-Facilities Administration Michael Bocchicchio retired in December 2009. This appointment, effective upon approval by the regents and pending suitable transition notice, is critical to meeting the strategic initiatives of the restructured Budget and Capital Resources Department.
The AVP-Capital Resources Management is responsible for a $9.2 billion program of capital projects currently under way, and a proposed $9.9 billion five-year prospective capital budget. In addition, the AVP is responsible for meeting the targets of an ambitious sustainability program, reducing systemwide energy consumption by 10 percent by 2014, and reducing greenhouse gas emissions to 2000 levels by 2014, and to 1990 levels by 2020.
The requested base salary ($180,000) is 7.7 percent below the midpoint of the SLCG grade 106 range ($195,000). The position is part of the senior management group, qualifying for a 5 percent monthly contribution to the Senior Management Supplemental Benefit program ($9,000 a year). By policy, the position qualifies for a relocation allowance of 25 percent of annual base salary ($45,000), a temporary housing allowance not to exceed $15,000, two house hunting trips each for the candidate and her spouse/partner, reimbursement of reasonable and allowable expenses associated with moving expenses, and eligibility to participate in the UC Home Loan Program. This position is funded by non-state funds (85 percent) and state funds (15 percent).
Russell W. Rumberger, Vice Provost-Education Partnerships. Approval was requested for the appointment of a newly created position, vice provost-education partnerships, effective upon approval by the Regents.
The vice provost is directly responsible for the implementation of the university's collaborations with P-20 education segments to reduce academic achievement disparities among California student populations and enable all California students to receive a world-class education that prepares them for successful participation in higher education, employment and civic life.
After an extensive national search, Russell Rumberger was identified as a top candidate. He currently is professor of education at the University of California, Santa Barbara. Throughout his career, Rumberger has addressed a range of important issues in education, including early childhood education, school segregation, the achievement gap, school dropouts and the educational challenges of English language learners. In addition, he directed the UC Linguistic Minority Research Institute (UC LMRI) for 10 years, from 1998 to 2008, and built the multi-campus research unit into an internationally recognized research institute that funded important research on one of California's and the nation's fastest growing populations, English-language learners. Currently, with funding from major foundations, Rumberger is directing the California Dropout Research Project (CDRP), which is commissioning research and developing a policy agenda to address the problem of school dropouts in California.
The requested base salary of $250,000 is 0.8 percent above the market median of $248,100, and within the range of SLCG 108 (minimum $192,300, midpoint $244,900, maximum $297,400). By policy, the position qualifies for reimbursement of reasonable costs not to exceed $500 for moving professional office materials from Santa Barbara to Oakland; one-time, one-way airfare to Oakland from Santa Barbara; reimbursement of all reasonable moving expenses, provided that Rumberger and Provost Pitts mutually agree, within the first 12 months of appointment that the university is better served by having Rumberger relocate to the Bay Area; and eligibility to participate in the UC Home Loan Program, which will only apply if the primary residence is located within 30 miles of the Office of the President, Oakland. By policy, Rumberger is ineligible to participate in the Senior Management Supplemental Benefit Program as a member of tenured faculty, but will accrue sabbatical credits. This position is funded 100 percent by state funds.
(Questions may be directed to UCOP Media Relations: 510-987-9200.)