BT0012 – Policy on Setting Faculty Salaries upon Conclusion of Administrative Appointments

BOARD OF TRUSTEES

Section 1. Background

Administrators who simultaneously hold faculty appointments are compensated for their administrative appointment with either full-time administrative salaries or supplements to their faculty salaries. Supplements have been implemented in some cases by increasing the faculty salary without designating the increased amount as an administrative supplement. In other cases, the increase in salary has been specifically designated as an “administrative supplement” or a “stipend.” As used in this policy, appointments with a full-time administrative salary are referred to as Salary-Based Administrative Appointments; appointments with a supplement to the faculty salary are referred to as Supplement-Based Administrative Appointments.

Section 2. Purpose

This policy prescribes the standards for setting faculty salaries for employees who continue to hold faculty appointments after their Salary-Based Administrative Appointments have concluded. This policy also provides for a system-wide fiscal policy to govern the setting of faculty salaries for employees who continue to hold faculty appointments after their Supplement-Based Administrative Appointments have concluded.

Section 3. Application

Salary-Based Administrative Appointments: Section 4 of this policy applies to all employees appointed to a Salary-Based Administrative Appointment after December 18, 2017 who simultaneously hold a faculty appointment. The terms and conditions of all employment agreements (in the case of the President), offer letters, and appointment letters after December 18, 2017 must be consistent with this policy. Section 4 of this policy also applies to an employee who: (1) was appointed to a Salary-Based Administrative Appointment on or before December 18, 2017, (2) concludes the administrative appointment and continues to hold a faculty appointment after December 18, 2017, and (3) does not have a written agreement regarding how the faculty salary will be set upon conclusion of the administrative appointment.

Supplement-Based Administrative Appointments: Section 5 of this policy applies to all employees appointed to a Supplement-Based Administrative Appointment after the effective date of the system-wide fiscal policy that shall govern the setting of faculty salaries upon conclusion of the administrative appointment. Section 5 of this policy also applies to an employee who (1) was appointed to a Supplement-Based Administrative Appointment before the effective date of the system-wide fiscal policy, (2) concludes the administrative appointment and continues to hold a faculty appointment after the effective date of the system-wide fiscal policy, and (3) does not have a written agreement regarding how the faculty salary will be set upon conclusion of the administrative appointment.

Section 4. Faculty Salary After a Salary-Based Administrative Appointment

When a Salary-Based Administrative Appointment concludes (voluntarily or involuntarily), the administrative salary is relinquished and the administrative supervisor (or, in the case of the President, Chancellors, and other University Officers defined in the Bylaws, the Board of Trustees) will establish a faculty salary within a range that is (a) not more than 125% of the highest salary of all full-time faculty in the department who share the same discipline and academic rank but not including Governor’s Chairs, Distinguished Scientists, Chairs of Excellence, endowed chairs, or former administrators whose faculty salaries were not determined in accordance with this policy and (b) not less than the average salary of all full-time faculty in the department who share the same discipline and academic rank. In setting the precise salary, the administrative supervisor (or, if applicable, the Board) shall consider the employee’s:

1. previous faculty salary at the University (if applicable);
2. length and quality of administrative service at the University;
3. particular experience, expertise, achievements, and standing in the discipline;
4. expected (or assigned) contributions to the department (and any other affected units);
5. faculty development opportunities foregone while serving as an administrator; and
6. other discipline-specific factors normally considered when setting faculty salaries in the department.

At the conclusion of a Salary-Based Administrative Appointment, the Board may approve an exception to this Section 4 for an employee who has provided extraordinary administrative service to the University.

Section 5. Faculty Salary After a Supplement-Based Administrative Appointment

The administration shall adopt a system-wide fiscal policy to govern the setting of faculty salaries for employees who continue to hold faculty appointments after their Supplement-Based Administrative Appointments have concluded. The fiscal policy shall be developed and approved in accordance with the University’s Policy on Issuance of System-wide Administrative Policies. The initial fiscal policy shall be subject to final approval by the Board of Trustees. Revision of the policy shall be subject to approval in accordance with the University’s Policy on Issuance of System-wide Administrative Policies.

History:

Adopted	12/18/2017
Revised	2/22/2018