FOR IMMEDIATE RELEASE
Friday, September 19, 1997
News Office (510) 987-9200
The 1997-98 state budget, signed into law last month by Gov. Pete Wilson provided funds for salary increases for all eligible UC employees. Implementation of all UC salary increases will be delayed 30 days, until Nov. 1, as part of UC's plan to make up a portion of a $12 million reduction in this year's state budget.
Funding for salary and merit increases for all eligible faculty totaled 7 percent, including a 3 percent parity raise to bring their salaries closer in line with colleagues at comparable research universities. Funding made available for salary increases for eligible staff is 4 percent.
The Regents approved a 4 percent increase in Atkinson's annual salary, from $253,300 to $263,500.
The chancellors received merit increases averaging 3.9 percent.
As of July 1, 1997, UC chancellors' average salary of $213,000 lagged behind the average salaries for the comparison university or college presidents by 25.8 percent.
In 1992, the Regents established a simplified method for determining appropriate salaries for senior university officials. The procedure includes a market survey of positions at 26 comparable public and private institutions as well as recruitment and retention experience.
This system was developed by UC and the California Postsecondary Education Commission. The target average salary for chancellors is the mean salary of chief executives of the comparison group, with variations based on campus size, scope, complexity and the chancellor's performance and experience.
In addition to merit raises, senior medical center officials received one-time performance awards from 14.9 percent to a maximum 20 percent of their base salaries if specified objectives and performance criteria were met. This Incentive Compensation Plan, which mirrors the compensation plans used in comparable teaching hospitals, was approved by Regents in 1992 but was not implemented until this year.
The plan is aimed at bringing UC's total compensation for senior officials closer to that of comparable institutions and it is designed to enhance the ability of medical centers to compete effectively with other teaching hospitals in recruiting and retaining the best health care professionals.
In addition to merit raises, some senior management employees received salary increases to correct market-related salary inequities where UC pay lags significantly behind comparable universities.
For example, before the increases approved today the salaries of UC vice chancellors for university relations and development lagged behind their counterparts at the comparison institutions by 16.7 percent. With increases of up to 7 percent in addition to merit raises, the salary lag for those vice chancellors has been narrowed to 6 percent.
Two years ago, a survey by the firm of William A. Mercer, Inc. determined that the average salaries for UC vice chancellors for university relations and development significantly trailed the market by an average of 23 percent. The phased-in market adjustment increases were begun then to bring the positions in line with the comparable universities.
The General Counsel received a 4 percent merit increase and 7 percent equity adjustment to bring his salary to a more competitive level.
Under Regents' bylaws, the board must approve the annual salary rates of all employees earning $156,100 or above. Salaries of the employees affected by the Regents' bylaw are available on request from the UC News Office.