The UC Board of Regents on Wednesday (Nov. 16) approved a proposal aimed at ensuring competitive compensation and benefits for all UC faculty and staff.
Under the proposal, UC will establish specific goals to achieve market-competitive salaries for all employees over the next ten years.
A recent study by Mercer Consulting of a range of UC employee groups found an average market salary lag of 15 percent among the groups studied. However, because of the favorable health and retirement benefits offered at UC, overall employee compensation is currently at market level.
The Mercer research showed that increases in salaries over the next 10 years will be necessary to ensure market-level compensation at all levels of the University due to expected continuing increases in health benefit costs and the likelihood that the university will need to reinstate employee contributions to its pension plan for the first time since 1990.
Also approved under the proposal was the adoption of more disciplined procedures for determining and setting senior management compensation by using a salary structure comprised of ranges for senior management salaries. The new process will also strengthen regental oversight of senior leadership compensation and will help ensure that decisions regarding executive compensation are appropriate to the markets within which UC competes.
In addition to the strengthened oversight provided under the proposal, known as RE-61, UC President Robert C. Dynes proposed that a task force be formed to study the UC's policies regarding the reporting and public disclosure of UC senior management compensation.
A third part of RE-61 regarding the use of private funds to augment the salaries of certain senior positions was not discussed. In a letter to the Regents prior to the meeting, Regent Judith L. Hopkinson postponed any further discussion of the use of private funds because she did not want the debate over this issue to "overshadow" the other, more important parts of the proposal.
Links:
Chancellor Responds to UC Compensation Coverage
University of California website
