The University of California must substantially reform its oversight and disclosure of employee compensation in order to meet its obligations to public accountability, according to a task force report issued April 13 to the Board of Regents.

Davis Chancellor Larry Vanderhoef, during a brown bag meeting hours after the report came out, commented: "The report is very hard-hitting, and it should be."

On April 17, UC President President Robert Dynes announced a series of actions that the Office of the President is taking immediately in response to the findings and recommendations released by the Task Force on UC Compensation, Accountability, and Transparency.

"I have heard the task force loud and clear: Major change is required, and we need to begin implementing that change immediately," said Dynes, adding that action will be taken on information systems, disclosure, accountability, ethics training, public information and policy issues. (See www.universityofcalifornia.edu/news/2006/apr17.html for more details).

The task force called for policies and protocols ensuring timely disclosure of total compensation information to the regents and the public; upgrading of UC's antiquated human resources information systems; clearer delineations of authority for compensation decisions, with more rigorous controls over exceptions to policy; new limits on externally compensated board service for senior executives; and stronger mechanisms for enforcing compliance with university policies, among other things.

"All of us on the task force are great believers in the University of California, and all of us find the current situation with respect to compensation wholly unacceptable," said former Assembly Speaker Robert Hertzberg, who co-chaired the task force. "This report includes 21 major recommendations aimed at remedying these compensation problems, replacing outdated policies and practices, and putting in place rigorous checks and balances. We hope the regents seriously consider them."

Regents' Chair Gerald Parsky appointed the task force last December, choosing members from government, education, business and the media. The membership included UC Davis law professor John Oakley, chair of the systemwide Academic Senate.

Parsky called on the task force to conduct an independent review of UC's policies and practices on compensation for faculty and senior managers, and on the release of public information regarding compensation and related matters, and to recommend improvements. The task force met 10 times.

Regent Joanne Kozberg, co-chair of the task force, said, "No question has been raised about the academic leadership of the University of California, and no question has been raised about the importance of the university being able to continue competing for the best people available."

But she added, "Greater disclosure, stronger controls, and functioning compliance mechanisms are needed with respect to compensation issues at the university. The university must take concrete actions to fix the problems of the past and demonstrate fully its commitment to public accountability. In doing so, UC has the opportunity to emerge as a national leader."

The report contains 21 major recommendations to address compensation-related problems identified by the task force.

On April 18, Parsky requested a UC plan of action for addressing the recommendations and restoring the "public's confidence" in the university's compensation practices. See www.universityofcalifornia.edu/news/compensation/parskyletter041806.pdf.

The task force report and a summary are available online at www.universityofcalifornia.edu/news/compensation/taskforce.html.

— from the UC Office of the President