Sunday, November 29, 2009

Where the Money Goes in the UC System: Revisiting the Compensation Scandal

In 2006, a series of stories broke in the media documenting how the University of California regents were granting lavish compensation packages to top administrators, and many of the perks going along with the high salaries were not reported. After several articles in the San Francisco Chronicle and a legislative hearing, it was discovered that the regents were constantly breaking their own rules in order to give people hidden compensation. According to one Chronicle article, “University auditors told the UC Board of Regents they had found that 143 exceptions to the university's compensation policies had been made to give extra pay or benefits to 113 senior managers.” However, this discovery of secret deals and broken rules was only he tip of the iceberg. It turns out that for years, the university was hiding from the public its compensations deals by only reporting some of the money that top executives and employees were getting. Thus, even though the UC is a public institution, it failed to fully disclose many of its decisions and policies.

In 2006, a state audit of the UC found hundreds of examples of misspent public funds and secret deals for top administrators. Here are some highlights from The San Francisco Chronicle’s reporting on the auditor’s findings:
-- Thirty-nine people getting extra vacation.
-- Fourteen senior managers receiving honoraria from the university -- $200 to $13,000 -- despite a policy against it.
-- Fourteen senior managers receiving incentive payments in violation of UC policy or not approved by the regents. Some are continuing awards of up to 15 percent of base salary.
-- Thirteen housing-related payments that violated policies;
-- Six sabbaticals granted to employees who didn't qualify for them or who were paid more than policy allowed.
-- Eleven stipends that either were not approved or were extended without approval.
-- Eleven cases of extra severance pay promised.
One of the things to note about all of these examples is that they concern secret deals of extra compensation; in other words, none of this money was listed in the public records of the employee’s salary.

To see how corrupt and wasteful a university can be, it is helpful to look at several other costly forms of secret spending that draw money away from vital instructional activities as they raise the compensation of the wealthiest employees:
The audit revealed that one executive who was paid well to move within California was Mitchell Creem, associate vice chancellor and CFO of medical sciences at UCLA. Creem received a $150,000 relocation allowance and 11 weeks of temporary housing -- well beyond the limit of 30 days. The regents were never told.

In another case, Thomas Jackiewicz, associate vice chancellor in the UC San Diego medical school, received a $40,000 "relocation incentive" even though he lived within California, which violates policy and was not approved by the regents. He also was promised a severance package that exceeded university limits.
These examples show what happens when the administrative class takes over a university, and they are able to reward each other without any level of public scrutiny.

In one of the most shocking findings of the auditor’s report, we find the following statement: “The University of California said it struck at least 700 separation agreements with employees over the past five years -- worth about $23 million.” This finding really got my attention, and so I looked for details for these costly separations, and I found these revelations:
When UC Berkeley Associate Athletic Director Mark Stephens was passed over for a promotion at Cal last year, the university promised to keep him on the payroll, giving him $183,000 over three years while letting him take a full-time job somewhere else.

Two years ago, UC Davis agreed to give a medical professor, Dr. Casey Daggett, $150,000 in exchange for his resignation and a promise to drop all his legal claims against the university.

In 2002, the UC Berkeley athletic department forced administrator Kevin Reneau to step down but agreed to keep him on the payroll for 2 1/2 years at $86,000 per year so he could reach retirement age and his family could qualify for health care benefits.

The Chronicle reported the university's settlement pact with former UC Davis Vice Chancellor Celeste Rose. Under that agreement, UC Davis agreed to give Rose $50,000 and keep her on the payroll for another two years, at $205,000 a year -- without requiring her to do any work -- in exchange for her promise to drop any claims of race or gender discrimination against the university.

Dr. Daggett, an assistant professor of clinical surgery at UC Davis, was promised $150,000 in exchange for his resignation and the release of any legal claims, according to a settlement agreement UC reached with him in March 2004. UC also agreed to drop any claims against him, the agreement said.

These are just a few examples of the hundreds of cases of secret wasteful spending, and they tell us that when a university says it has no money to pay for things like teachers and smaller classes, the reason for the institution’s lack of money may be due to the fact that it has become taken over by a class of administrative employees who are bent on turning public institutions into their own private piggy banks.


  1. This comment has been removed by a blog administrator.

  2. I am sure the UCs have to negotiate with certain professors and administrators to keep them from the competing universities, and ultimately some professors perhaps bring in more money to the system despite their compensation beyond what is allowed. However, the sheer number of negotiations is striking. Perhaps a new system can be implemented for professors and administrators that are clearly underpaid or can bring in more research grant, but some of the compensation packages mentioned above simply seem unreasonable. And for now, the violations of regulations and rules should still be penalized. The lack of penalty in the system is worrying.

  3. I am surprised by the amount of benefits certain administrators of the UC system receive. We are told by the UC system that we are in a fiscal crisis, yet the UC system’s wasteful spending makes me think otherwise.

  4. Love your information provided that Where the Money Goes in the UC System: Revisiting the Compensation Scandal ....

    Regards from lover,

    International Universities

  5. the quality of conversations is amazing. Perhaps a new program can be used for instructors and administrators that are clearly under paid or can produce more research allow I am surprised by the quality of benefits certain administrators

  6. I just wanted to comment on your blog and say I really enjoyed reading your blog here. It was very informative and I also digg the way you write! Keep it up and I'll be back soon to find out more mate.

    1. Enjoy to read articles here, i like this blog so much..

      - blog online -

  7. Coach Outlet Store Online Michael Kors Outlet Coach Factory Outlet Toms Shoes Cheap Jerseys Michael Kors Coach Outlet Coach Factory Outlet Coach Outlet Coach Handbags Giuseppe Zanotti Coach Factory Outlet Online Coach Outet Store Online Coach Factory Outlet Michael Kors Outlet Online Celine Outlet Michael Kors Michael Kors Store Tomss Hoes Prada Outlet Fitflop Footwear Celine Bags Fitflops Flipflops Fitflops Giuseppe Zanotti Designer Fitflops Giuseppe Zanotti Sneakersmen Fitflops

  8. Here we play with all sorts of influences - coach factory outlet of desired shapes tiffany jewelry to prioritize the tiffany and co manner in which I go about finding what I need," the coach factory outlet tells Ecouterre.More than 1,000 runners began the race.Not just in true religion jeans, but also in making sure you stay happy until the cheap jerseys rain every day. Hey, $350 is way less than those coach outlet. For those unfamiliar, the coach factory online (only the first coach factory count toward the rankings this year) in coach outlet online carry all their own alexander wang shoes for a daily water ration and michael kors outlet tent to sleep under;The coach factory outlet is yours, but coach factory outlet is to just be yourself and be coach outlet store online.The sleek ensemble came on show through sac burberry. Choose from brands like Bernardo, michael kors outlet and others.which saw everything he could to shake off that 'alexander wang bags' image, just got the treatment from the michael kors himself, marc by marc jacobs outlet department. the company was coach factory outlet online that it can really tell that you're turned on, so michael kors should definitely be saved for the bedroom.which has seen him take on projects from labels like michael kors outlet online, to things like designing boats.

  9. I think this is an informative post and it is very useful and knowledgeable. therefore, I would like to thank you for the efforts you have made in writing this article.5starworcester |

    mworldhosting |

    huntsfa |

    chasethestorm |

    bergere-de-france |

    electraradio |

    originalbbq |

    itonicsolutions |

    elephantbeanbag |

    mcsdtraining |

  10. As early as you contains therefore you'll YOU day cash enhancements to possess our Pay day enhance equally as Dimensions Loan from the bank, with the exception of {is likely|is presumptively going} to your own first compensation presumptively presumptively be captivation free of charge, you're aiming to urge to satisfy our workers members, scan our conveniences and see the potential associated with the style throughout cash advances for you that credit history kind YOU day cash enhancements can assist you in conjunction beside your complete short economical wants.


  12. Are you lasting having obtaining some style of prices that may can’t hold on tight until your own following day progress might happen? square measure you hooked having the sudden vehicle solve? Designed for in the least sudden unlooked-for pressing state of affairs you’re under-going, nearly any cash day loan can allow you to receive the payday loans jackson-MS assets you will need swiftly! generally, the full educate generally incorporate simply fifteen merchandise or even technique a lesser quantity of.

  13. great article, thank you for sharing, I think I need it
    signature: juegos kizi | juegos de kizi | juegoskizi

  14. Nice article, thanks for the information. It's very complete information. I will bookmark for next reference
    jaring futsal | jaring golf | jaring pengaman proyek |
    jaring pengaman bangunan | jaring pengaman gedung

  15. Good schools often get good grades, I think schools should select matching capacity

    go girl games , cool math , jogos de friv , jogos do friv , girlsgogames , coolmath4kids , jogos de friv , jogos do friv

  16. Hello Everybody,
    My name is Mrs Sharon Sim. I live in singapore and i am a happy woman today? and i told my self that any lender that rescue my family from our poor situation, i will refer any person that is looking for loan to him, he gave me happiness to me and my family, i was in need of a loan of S$250,000.00 to start my life all over as i am a single mother with 3 kids I met this honest and GOD fearing man loan lender that help me with a loan of S$250,000.00 SG. Dollar, he is a GOD fearing man, if you are in need of loan and you will pay back the loan please contact him tell him that is Mrs Sharon, that refer you to him. contact Dr Purva Pius,via email:( +918376918351 Thank you.

  17. Trailers are lodging units worked underway offices and transported to their proprietor's area. Rather than routine homes that are built nearby, manufactured houses are for the most part far less expensive and are regularly connected with country zones and high-thickness improvements. Cash Advanc

  18. I'm puzzled with lots of exercises. I was afraid I could not do the right time despite my hard work. I need a support person.

  19. Remarkable! It will be astonishing launch on this web site in the people to help you many different feelings in this particular area. Nowadays follow-up payday loans oceanside Bless you a good deal.

  20. A detailed and very informative blog . I do not need to move further for more information. I found your blog post very useful for the readers. Keep It Up!! drakorindo

  21. MBBS in Philippines Wisdom Overseas is authorized India's Exclusive Partner of Southwestern University PHINMA, the Philippines established its strong trust in the minds of all the Indian medical aspirants and their parents. Under the excellent leadership of the founder Director Mr. Thummala Ravikanth, Wisdom meritoriously won the hearts of thousands of future doctors and was praised as the “Top Medical Career Growth Specialists" among Overseas Medical Education Consultants in India.

    Why Southwestern University Philippines
    5 years of total Duration
    3D simulator technological teaching
    Experienced and Expert Doctors as faculty
    More than 40% of the US returned Doctors
    SWU training Hospital within the campus
    More than 6000 bedded capacity for Internship
    Final year (4th year of MD) compulsory Internship approved by MCI (No need to do an internship in India)
    Vital service centers and commercial spaces
    Own Hostel accommodations for local and foreign students
    Safe, Secure, and lavish environment for vibrant student experience
    All sports grounds including Cricket, Volleyball, and others available for students

  22. คาสิโนสด
    24.ช.ม พบกับความบันเทิงที่เต็บรูปแบบ นั่งอยู่บ้านก็มีรายได้ ต้อง KING98 เท่านั้น

    ที่มั่นคง และปลอดภัยระดับประเทศ สมัครสมาชิกฟรี ฝา-ถอน ระบบออโต้ ไม่มีเทิร์น

  23. casino
    เว็บเดียวในไทย ที่เปิดมาอย่างยาวนาน สมัครฟรี ไม่มีขั้นต่ำ ระบบออโต้ 24. ช.ม

    casino online
    ทึ่มีเกมให้เลือกเล่นมากกว่า 3,000 เกม เล่นได้ตั้งแต่ 1 บาทขึ้นไป บริการตลอด 24 ช.ม

  24. เว็บสล็อตเป็นเว็บเกมส์สล็อตที่เหมาะสำหรับนักลงทุนที่งบน้อยจนไปถึงงบมากฝากถอนไม่มีขั้นต่ำมั่นคงปลอดภัย

  25. สล็อตเว็บตรง เป็นเว็บเกมส์สล็อตที่เหมาะสำหรับนักลงทุนที่งบน้อยจนไปถึงงบมากฝากถอนไม่มีขั้นต่ำมั่นคงปลอดภัยสมัครสล็อต ที่นี่ดีที่สุดเป็นเกมส์สล็อตที่ถูกใจสำหรับนักลงทุนที่งบน้อยจนไปถึงงบมากฝากถอนไม่มีขั้นต่ำมั่นคงปลอดภัย

  26. สล็อตแตกง่าย ลงทุนน้อยกำไรเยอะฝากถอนไม่มีขั้นต่ำมั่นคงปลอดภัย สล็อตเล่นฟรี สมัครตอนนี้ลุ้นรับเครดิตฟรีทันที