EXECUTIVE COMPENSATION DESIGN 2000-01

Summary

The Board has signaled its intent in adopting the new student centered budget model to base reward for institutions, institution presidents, and the Chancellor on performance indicators, with goals for improvement and future targets. President Imeson, along with the Executive Committee (serving as the Personnel Committee), submits the following report:

• All OUS institution presidents have performed at meritorious levels, leading campuses that are quite distinct and differentiated in terms of missions and challenges. All have had a good year in terms of strengthening programs, hiring excellent staff, fundraising at all-time high levels, and uniting to achieve the System's legislative agenda in unprecedented ways. In fact, their leadership and outstanding achievements have come to be the expected norm.
• Base compensation should be framed around the same peer institution clusters as the budget model itself, which takes into account size and program array, mission, and category i.e., land grant, AAU, urban, polytechnic, and comprehensive undergraduate/masters institutions, etc.
• The Board should operate in executive compensation determinations within the same 4-5 percent resource pool as campuses did in determining faculty salaries.
• Weight should be given to, over time, closing the gap with peer groups, just as we are committed to doing with the faculty and staff.

Recommendation to the Executive Committee

Given the Board's general presidential salary objectives in 1) addressing the peer group-market issue, and 2) rewarding progress in terms of the performance indicators, the Board President recommends the following salary actions to be effective in two installments: January 1, 2000 and January 1, 2001.

Meritorius Performance 1999-2000

Dan Bernstine	$146,000
Dave Frohnmayer	$146,000
Paul Risser	$146,000
Phillip Creighton	$115,000
Martha Anne Dow	$115,000
Steve Reno	$115,000
Betty Youngblood	$115,000

In addition, the Board President recommends two high merit/performance bonus awards to Presidents Martha Anne Dow and Paul Risser for achieving the greatest progress in setting explicit performance goals and measurable targets, and dramatically reversing declining enrollment trends and improving retention/ graduation rates.

The high merit awards consist of:*

Martha Anne Dow = $5,000

Paul Risser = $5,000

(The source of funding is the Performance Fund in the 1999-2001 budget.)

President Imeson and the Executive Committee believe the Chancellor has performed at a meritorious level leading the Oregon University System by establishing and implementing the new budget model and System performance indicators, reversing declining enrollment trends, and effectively mobilizing and uniting System leadership to reverse the state's disinvestment in OUS.

The Board President recommends that Chancellor Joe Cox receive the salary of $149,000, to be effective in two installments: January 1, 2000 and January 1, 2001.

* All other dimensions of executive compensation remain unchanged; i.e., expenses incident to position, housing, use of automobile, etc.

COMMITTEE ACTION:

BOARD ACTION (roll call vote required):