In another attempt to rein in’ statewide higher-education spending, Sen. Leland Yee (D-San Francisco/San Mateo) has proposed freezing executive pay in years when student fee hikes are approved at California State Universities, California Community Colleges and the University of California.
‘If you’re raising executive compensation, that means there is some extra money in the system,’ Yee spokesman Adam Keigwin said. ‘We don’t need to be raising student fees if that is happening.’
Yee’s initiative, Senate Bill 217, will be open for Senate consideration beginning March 26.
The bill has no explicit expiration date and would apply to executives opening or renewing a contract after January 2010.
If passed, SB 217 would prohibit pay increases to over 100 UC executives statewide, including the UC president and vice president, campus chancellors, the systemwide treasurer and assistant treasurer, the university’s general councils and the secretary of the UC Board of Regents.
UC Office of the President spokesman Paul Schwartz said that university officials are still reviewing the proposal and would not formally respond to the legislation at this time.
While SB 217 would prohibit executive pay increases at the CSU and CCC systems, the legislation can only request that the UC system do so, due to the level of autonomy granted to the university by the state constitution.
‘When the state Legislature or the governor issues directives like this, we participate in supporting them to the extent we can without jeopardizing our service to the people of California,’ Schwartz said.
Schwartz added that he is unsure whether the assessment will be complete by the March 26 voting date.
The regents recently approved a’ similar proposal in January that suspends pay increases for 85 university executives until the end of the 2009-10 fiscal year.
Proposed by UC President Mark G. Yudof, the regents’ plan also restricts the university’s bonus-pay programs. Pending bonuses for executives with annual salaries of $205,000 or more would be canceled.
‘These are extremely difficult times, and we must make difficult decisions,’ UC President Mark Yudof said in a statement. ‘Although I regret very much the impact of these actions on our very dedicated and valuable employees, I believe they are consistent with our obligation as a public institution and are warranted given the historic economic crisis confronting us.’
Schwartz said that in many cases, compensation received by UC employees is far below market rates for similar positions nationwide.
When hiring new employees, it is sometimes necessary to meet those market rates, he said.
‘Any time salary caps are placed on an organization, the recruitment and retention of top talent becomes more challenging,’ UCSD spokeswoman Stacie Spector said in an e-mail.’ ‘Although compensation is not the only consideration that compels an employee to join an organization, it is a critical factor, particularly given the high cost of living in San Diego and the state.’
According to Keigwin, SB 217 makes no attempt to hamper executive recruitment efforts at the UC system, but simply prioritizes recruitment of individuals who are more directly involved in educating students.
‘We need to be investing in the classroom and in instruction, not in having the top executives,’ Keigwin said. ‘We saw how well that served Wall Street.’
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