The UC Office of the President has provided a detailed explanation for a widely-reported $871 million compensation figure that news media have characterized as "bonuses, moving allowances, administrative stipends and other types of cash compensation in addition to salaries and overtime."

The $871 million figure was first reported by the San Francisco Chronicle, which used a salary database to compare "base salary" to "total compensation" excluding overtime for all UC employees in 2004-05.

In fact, more than two-thirds, or $600 million, was compensation paid to health sciences faculty for treating patients or conducting research, and to campus faculty for additional teaching and research they do during the summer.

While senior managers at the university have been the focus of the Chronicle's stories, these senior managers actually received only $7 million, or less than 1 percent of the $871 million figure. Of this $7 million, about $900,000 came from the state general tax fund and $300,000 came from student fees — the rest was from other sources of revenue.

Following is a look at the largest categories included in the $871 million: $66 million of the total came from the state general fund and $62 million in student fees was paid as non-base pay compensation to UC employees. (See the chart below for the complete breakdown of the $871 million figure cited by the Chronicle):

Health sciences faculty compensation — $449 million (52 percent)

In addition to base salary, health sciences faculty are paid compensation funded primarily by professional fees generated by their clinical activities and competitive contract and grant research awards — all of which are paid through university accounts. This additional compensation is available to medical, dental, pharmacy, optometry and nursing school faculty for the work they perform, such as treating patients or performing professional services, above and beyond their regular teaching requirement.

Additional faculty teaching and research — $151 million (17 percent)

Most general campus faculty (those not members of the health sciences faculty) have 9-month appointments. They are paid additional compensation for teaching and research done during the summer, allowing UC to utilize its facilities on a year-round basis.

Additionally, faculty are paid summer salaries by sponsors of federal and private research grants.

Differential pay — $70 million (8 percent)

Of the total, $58 million was paid to unionized employees, mostly at the university's medical centers, for evening, night, weekend, holiday or "on call" shifts. An additional $3 million was paid to non-unionized staff and $9 million was paid to employees at the Department of Energy national laboratories.

Special performance, incentive or bonus pay — $58 million (7 percent)

This section includes two categories:

Special Performance Awards are given in recognition of distinguished service for significant achievements and contributions, and are available to employees and work teams at all levels of the organization. Incentive pay/bonuses includes incentive pay when pre-determined, specified goals or objectives are attained.

This category also includes relocation incentive pay, signing bonuses and employee referral bonuses primarily for appointments at the medical centers. The DOE labs recorded $7 million in the two combined pay categories.

Of the remaining $51 million, $15 million was paid to union-represented staff and approximately $2.5 million was paid to employees in the Senior Management Group (approximately $8 million was paid from state general funds and student fees).

Compensation by agreement for faculty, staff, students and managers — $57 million (7 percent)

This total includes: Students and postdoctoral fellows — $16 million, some of it through fellowship funding provided by an outside agency but paid through the university's payroll system; adjunct, recalled and visiting professors — $13 million; University Extension — $9 million; staff physicians and dentists and other health sciences faculty — $6 million: This category of employee includes staff physicians and dentists who do not have faculty appointments as well as other health sciences faculty who have a faculty appointment of 50 percent or less and thus are not eligible for the Health Sciences Compensation Plan; student employees — $4 million: some student job titles are paid based on an assignment rather than on an hourly basis (second- and third-year resident assistants in the dormitories, student referees for intramural sports leagues, camp counselors, etc.).

Background

For more details on the UC compensation issue, visit www.universityofcalifornia.edu/news/compensation.