November 19, 2001 Regents scale back across-the-board merit increases for senior administrators By Paul Schwartz The University of California Board of Regents held to 2 percent systemwide merit increases for all top university officials including President Richard C. Atkinson and the 10 campus chancellors. The 2 percent merit increases, effective October 1, follow identically this year's 2 percent funding for previously announced systemwide increases for all UC staff employees. Salary increases in excess of the 2 percent merit increases, other than increases for employees funded by Department of Energy contract funds, will be deferred at President Atkinson's discretion. In a separate action, the Regents on November 15 also approved special supplemental retirement funds for all eligible UC employees to help boost this year's modest salary increases. The university received significantly reduced state funding for 2001-02 salaries due to the recent economic downturn. In all, the Regents approved salaries for 145 senior managers earning above $168,000, the threshold salary level requiring regental approval. Salaries for senior UC administrators remain significantly under-market or, in some cases, lack alignment within the UC salary structure. Accordingly, the Regents also approved potential salary increases beyond the 2 percent merit raises for a limited number (49) of senior administrators such as deans of engineering and other top academic leaders. Although approved, salary increases in excess of the 2 percent merit increases, other than increases for employees funded by Department of Energy contract funds, will be deferred at the president's discretion, until such time as he deems appropriate given current economic conditions and budgetary constraints and in light of individual retention and equity considerations. An independent report by William M. Mercer, Inc., shows that the average salary for a UC chancellor of $280,610 lags the comparison group average by 33 percent. Despite the increases approved today, the average chancellor salary will continue to lag the comparison group average by more than 25 percent. "We compete nationally for senior positions and these salary lags put UC at a real competitive disadvantage in attracting and keeping top leaders," said Judith W. Boyette, UC associate vice president for human resources. "The caliber of leadership is vital to the university and competition is fierce. Many UC employee groups lag the market and in the face of reduced Partnership funding and budget cuts, we're doing what we can to keep UC competitive." By agreement with the California Postsecondary Education Commission, UC uses a market-based methodology to help set salaries for senior administrators. UC salaries are compared with those of 26 comparable public and private universities across the nation including Stanford University, Harvard University, Yale University, Brown University, California Institute of Technology, University of Chicago, Columbia University, and the Massachusetts Institute of Technology. President Atkinson's salary will increase from $349,100 to $356,100 per year. Salary comparison information for UC chancellors and related information is available online, as are University of California budget documents. There are approximately 160,000 UC employees. Individual salaries affected by the Regent's actions are available upon request from UC Strategic Communications.