The University of California employs approximately 185,000 faculty and staff across 10 campuses and five medical centers. New hiring, resignations, promotions, transfers to new duties and the like occur frequently across the system. Total systemwide salaries are reported annually to the UC Board of Regents as a group and posted at www.universityofcalifornia.edu/news/compensation/reports.html.

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 $218,000 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 adjustments were approved by the UC Board of Regents today (July 14):

San Francisco Campus

Mark R. Laret, Chief Executive Officer, Medical Center, San Francisco Campus

The UCSF Medical Center requested a retention salary adjustment for Mark R. Laret that would come exclusively from hospital operating funds. This pre-emptive request followed a recent effort by a major academic medical center in Boston to recruit Laret. The regents approved an annual base salary increase of $195,300 and a graduated retention incentive arrangement that would bring Laret's total cash compensation to $1,222,000 for year one. Because of his outstanding leadership, including his pivotal role in the Mission Bay hospital project and fundraising campaign, the San Francisco campus had urged leadership continuity.

Laret is a nationally recognized leader in the health care industry with a distinguished 31-year career. Under his stewardship, UCSF Medical Center has risen from a top 20 hospital nationally in terms of quality of safety to its current ranking of No. 7. Financially, he has taken the institution from losing $60 million a year in 2000 to an anticipated operating gain in fiscal year 2011 of more than $175 million on $1.6 billion in patient care revenue. During Laret's 11-year tenure in San Francisco, the medical center has generated more than $1.5 billion in new cash for the University of California.

Laret's proposed base salary of $935,000 for SLCG Grade 118 (Minimum $585,000, Midpoint $760,400, Maximum $935,900) is 4.1 percent below market for the 50th percentile of $975,000. His proposed total cash compensation is $1,222,000 in the first year, rising to $1,522,000 in 2014, not including any performance-based incentive payments from the Clinical Enterprise Management Recognition Plan (CEMRP). At 20 percent target range, his CEMRP would be $187,000, although actual CEMRP awards vary based on performance. The 50th percentile market data for total cash compensation is $1,222,900. As such, the percentage difference for Laret's total cash compensation varies from zero percent in the first year, to 24.5 percent above market ($1,522,000) in 2014. The 75th percentile market data for total cash compensation is $1,732,500, placing Laret's first year figure at 29.5 percent below market and in 2014, 12.2 percent below market.

Questions may be directed to UCSF Public Affairs: (415) 502-6397.

UC Office of the President

Patrick J. Lenz, Vice President – Budget and Capital Resources

The Office of the President requested approval to promote Patrick J. Lenz to vice president-budget and capital resources and increase his annual base salary by $27,500. Funding for the position comes from state funds. As part of a reorganization to increase efficiency, the systemwide budget office and facilities administration were merged in mid-April 2009. Lenz agreed to head this new unit, effectively doubling the scope of his responsibilities, but he received no increase in pay previously. The proposed base salary adjustment reflects the expanded responsibilities.

Lenz's total cash compensation of $300,000 at SLCG Grade 110 (Minimum $239,700, Midpoint $307,200, Maximum $374,500) is 0.3 percent above market.

Santiago Muñoz, Associate Vice President – Chief Strategy Officer

Since Santiago Muñoz was appointed executive director-clinical services development in 2004 and associate vice president-clinical services in 2007, his responsibilities have greatly expanded. The Office of the President requested a promotion, title change and salary adjustment of 24.1 percent. During this critical time for the financial stability of UC medical centers, Muñoz has been the lead strategist and negotiator on behalf of UC Health, successfully negotiating insurance contracts with the state and federal government and with private industry. He has saved the university millions of dollars and greatly improved systemwide efficiency.

Muñoz's proposed base salary of $250,000 is 17.7 percent below median market data. His anticipated compensation of $37,500 from the Clinical Enterprise Management Recognition Plan (at 15 percent target rate) would bring his total cash compensation to $287,500. Including this amount, his total targeted cash compensation would be 22.4 percent below market data. The approved changes place Muñoz at SLCG Grade 109 (Minimum $214,700, Midpoint $274,700, Maximum $333,700).

The funding for this position is approximately 40 percent state general funds, 40 percent common funds and 20 percent clinical revenue.

Questions may be directed to Office of the President, Media Relations: (510) 987-9200

Interim actions

Some appointments and compensation are approved by the chair of the Committee on Compensation and the UC President as interim actions, which arise between meetings and must be dealt with more quickly for a variety of reasons. They come to the board as informational items; the actions presented most recently to the board as informational items are posted at www.universityofcalifornia.edu/regents/regmeet/jul11/interim.pdf.