UC moves forward on oversight

During a regularly-scheduled March meeting, UC President Robert C. Dynes and UC's Board of Regents took action on a broad range of items aimed at strengthening regental oversight, public accountability, and disclosure of compensation and related matters.

Dynes said the steps being taken are part of UC's ongoing efforts to establish appropriate controls over, and fix the problems that have been identified in, the university's compensation policies and practices.

Dynes also announced a new policy providing that any capital projects for chancellors' residences and offices costing in excess of $25,000 will now require the approval of the president. For projects on the president's residence or office, the approval of the regents will be required and the approval threshold for the president will be brought back to the regents for ratification at the May meeting. (Any projects exceeding the threshold in the meantime also would be brought to the regents for approval.)

The regents will receive an annual report on all approved capital projects at the chancellors' residences and offices.

Regents also received several oral status reports regarding the numerous reform efforts currently underway, including an external 10-year audit of senior management compensation being performed by PricewaterhouseCoopers; a review of UC compensation policies and practices by the regents' Task Force on Compensation, Accountability and Transparency; and an audit of UC's compensation and disclosure policies and practices being conducted by the Bureau of State Audits.

Continuing the work they began in January, the regents placed senior medical center and national laboratory managers, as well as designated positions in the UC treasurer's office and Office of the Secretary of the Regents, into the new salary framework that they are now using to improve oversight, accountability and decision making regarding senior management compensation (the slotting of these positions did not increase salaries; it simply placed people into the framework).

Regents also approved compensation levels for certain individual positions identified in the agenda for recruitment or retention purposes.

Additionally, regents received two required reports detailing compensation and paid service on corporate boards for principal officers of the regents and officers of the university, and discussed more broadly,UC's policies on outside board service for senior managers.

Acting on Dynes' recommendation, the regents also considered a policy providing that separation terms negotiated with an individual prior to the employee's separation (such as at the time of hiring) could be reduced or eliminated if the president, in consultation with the general counsel, determines that the employee had violated university policy or applicable law. Final action will be taken in May.

UC regents' Chairman Gerald Parsky announced that the regents and the president will immediately embark on a process to reorganize the Office of the President, including possibly creating new chief operating or administrative officer, and chief financial officer positions. In addition, Parsky said the regents will create an independent compliance officer, reporting directly to the board. Both moves are designed to strengthen the business practices and management of the university to better complement the university's academic excellence.

UC said these actions were taken to support two institutional priorities: Correcting problems with respect to compensation and disclosure policies and practices, and maintaining competitive compensation in order to preserve UC's quality and competitiveness.

More information can be found at www.universityofcalifornia.edu/regents/regmeet/mar06.html.

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Clifton B. Parker, Dateline, (530) 752-1932, cparker@ucdavis.edu

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