Although UC President Robert C. Dynes offered an apologetic tone at state Senate hearings last week, legislators are still expressing doubt and frustration over the university’s compensation practices with its top executives.
The 10-campus system is in the middle of investigations into its pay policies after a slew of media reports revealed that the university had awarded more than $800 million in previously undisclosed compensation packages and perks to top-ranking administrators and other employees.
“It is with real regret that I have come to acknowledge that we have not always met the standards others hold us to in matters of compensation and compensation disclosure,” Dynes told the Senate Higher Education Committee. “We have not always met the expectations we have in ourselves as stewards of a great public institution.”
At its January meeting, the UC Board of Regents approved an external investigation, conducted by a private company, into the system’s pay policies. The three-part audit, which will explore compensation payments to 32 top university executives over the past 10 years, is expected to conclude this month.
After the audit, the state would see a “fairly major overhaul” of the university’s compensation practices, Regent Judith Hopkinson said at the meeting.
But as of now, some legislators remain unconvinced of the university’s commitment to fixing problems with transparency, and are calling for more accountability.
“I want to know whether heads might roll,” state Sen. Gloria Romero (D-Los Angeles) said at the hearing. “I want us to go beyond mea culpas and exact some responsibility.”
Other lawmakers have called for more drastic action, including stripping the university of its constitutional autonomy. While the university is mostly independent, it still relies on billions in state funding every year. A bill to take away the system’s autonomy is still a viable option, according to state Sen. Jeff Denham (R-Merced), who authored the measure.
“We’ve got to rein in this corruption,” he said. “With this option, we could directly cut salaries for executives.”
Legislators, along with workers’ unions and student advocacy groups, have been particularly miffed by the university’s annual proposals to increase executive salaries while simultaneously increasing student fees and keeping other workers’ wages flat. This year, regents proposed an 8-percent fee hike for students, which may eventually be eliminated by a $75-million buyout proposal by Gov. Arnold Schwarzenegger.
“There’s been a proposal every year to increase tuition and rank-and-file workers have faced salary freezes,” Denham said. “Dynes said he had a salary freeze as well, but I’m frustrated by his answers and I’m looking further into it.”
The hearings are part of the state Legislature’s own audit into the university’s pay practices. The higher education subcommittee will hold another hearing on Feb. 22, when regents will address the senators.
