At its meeting in San Francisco last week, the UC Board of Regents endorsed the recommendations of a key task force and adopted several supporting actions, and UC President Robert Dynes unveiled an action plan to reform compensation programs throughout the 10-campus university.

The board also issued a statement affirming its support for Dynes' leadership, as well as its intention to hold him accountable for enacting needed reforms and to be more directly involved in the overall management of the university.

"The regents hold President Dynes accountable for the University's compensation problems and he has acknowledged his responsibility," the statement read. "After our in-depth discussion with him on these issues, however, we are convinced that he understands the dimensions of the problem, the context in which these problems occurred, and the institutional barriers that must be overcome to ensure lasting reform."

The regents' full statement is at www.universityofcalifornia.edu/news/2006/may18a.html.

The board also received the last of several audits intended to establish the facts of compensation provided to senior managers at the university over the last several years.

Regents Chair Gerald Parsky said he thought last week's actions, and those expected in the coming weeks, will address the university's compensation problems and begin to restore the public trust. "I am satisfied that the combination of these actions will begin to restore the public's trust in the university that plays such a vital role in the state and its economy," said Parsky.

Dynes echoed Parsky's sentiments. "We must work together to set this university on a firm course that strengthens the way we operate and regains the public's confidence in us," Dynes told the board. "We must recruit the best and brightest for California. But we must do it in the context of being a public institution."

Dynes' announced action plan, which he previewed for the regents by letter on May 16, consists of the following elements:

• Establish an improved working relationship between the administration and the Board of Regents on compensation matters.
• Align university policies and practices with the 1992-93 principles on executive compensation — principles never fully implemented by either the regents or the administration following the 1993 actions.
• Ensure proper disclosure of compensation matters by disclosing fully to the regents in advance — and to the Legislature, the media, and the public immediately after actions are taken — the total compensation packages for a designated group of top positions using a simple, common template. This action also includes developing mechanisms for keeping the governor and Legislature fully informed of compensation policies and practices through regular reports or annual testimony, and development of a new, public Web site showing policies, practices and decisions regarding UC compensation.
• Invest in a modern, comprehensive human-resources information system to quickly examine and analyze compensation data and allow the university to fulfill its obligations to public accountability.
• Change UC's culture regarding compensation issues by "infusing the culture with renewed commitment to upholding the public trust and a renewed appreciation for the importance of modern management systems," according to Dynes.

Dynes also reported that he has established an implementation committee to help address the issues raised by the regents during the compensation issue.

Information

A copy of Dynes' letter to the board describing these actions is available at www.universityofcalifornia.edu/news/compensation/dynes051506.pdf.