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Economic justice issue

Protect public university money

By Rebecca Chamow, legislative analyst

The University of California is widely recognized as one of the best public university systems in the country, and even the world. Over the past few years, however, the UC system's questionable executive compensation practices have worried and angered many throughout California. While the state is currently in the middle of a budget crisis and student's fees have hiked steadily for the past decade, it is especially important to ensure a sound process for dealing with the issues of executive compensation and contracts.

A recently introduced bill, AB 1821 by Assemblyman Portantino (D–Pasadena), addresses this issue by creating a clearer process for contract approval of UC executives. AB 1821 would require that all contracts for the hiring of an executive officer be adopted in a duly noticed meeting of the board. Additionally, the bill would redefine the parameters of separation pay for executives who end their employment with UC, so that the transition pay would not exceed the executive's regular compensation, and so that the executive would be paid only for actual duties performed.

The bill would also provide that, if the trustees decide to grant the executive with a professorship upon leaving, no compensation would be paid unless it is paid for actual teaching and does not exceed the amount that a full professor of the California State University would be paid for a similar teaching assignment.

We must take measures to ensure that no more public money is funneled into the pockets of retiring executives of the public university system. The changes laid out in this measure are a good start for this process. Write your assemblymember in favor of this important bill.

Sample Letter

Please copy the following text into your favorite word processor and customize it. Return it to LLP so we can track it.

The Hon.
The California State Legislature
Sacramento, CA 95814

Dear Assembly Member:

Please support AB 56 in the Human Services Committee.

I am writing to urge your support for AB 1821 by Assemblyman Portantino. AB 1821 would put several requirements in place to create a clearer and fairer process for dealing with executive compensation within the University of California system.

The University of California is widely recognized as one of the best public university systems in the country, and even the world. However, over the past few years, the UC system’s questionable executive compensation practices have worried and angered many people throughout California.

AB 1821 would require that all contracts for the hiring of an executive officer be adopted in a duly noticed meeting of the board. Additionally, the bill would redefine the parameters of transition pay for executives, so that this pay would not exceed the executive’s regular compensation, and so that the executive would be paid only for actual duties performed.

This bill would also provide that, if the trustees decide to grant the executive with a professorship upon leaving, that no compensation would be paid unless it is paid for actual teaching and does not exceed the amount that a full professor of the University of California would be paid for a similar teaching assignment. These requirements are all fair, reasonable, and realistic changes that would help safeguard against excess public money being funneled into the pockets of retiring executives of the public university system.

Thank you for your consideration of this matter.

Sincerely,

[Your Name Here]

 

 

This page updated March 1, 2008.

Of related interest

Legislative Calendar 2006–2007 (PDF)

Learn more about this issue:

Text of AB 1821