28 August 2009

Limits on Executive Compensation at UC, CSU die in the Legislature

Senate Bill 217, originally introduced by Sen. Leland Yee (D-San Francisco) and overwhelmingly approved by the Senate in May, died in the Assembly Appropriations Committee yesterday. The bill would have prevented UC and CSU from increasing executive compensation in any given year in which the State's appropriation for UC and CSU was less than in the previous year.

It's true that limiting executive compensation will not solve the University staggering budget problems, but it would have been a step in the right direction. UC and CSU lobbied hard against the bill, on the premise that a cap on executive compensation would have caused the University top brass to leave for greener pastures, thereby causing the university million is recruitment costs to replace them.

As pointed by the California Chronicle, it's funny how salary reductions for faculty and staff (in the form of "furloughs") are supposed to save the University money, while the same for senior managent would actually cost more.

Equally funny how "bad optics" considerations can lead to the most egregious breach of shared governance in recent memory, while they carry no weight in the case of executive compensation.

Is there really no shame at UCOP?

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