Memo Regarding Foundations and Presidential Compensation

From: Bill Tschida, Vice Chancellor for Human Resources; and Peg Blean Boots, Director for Development.

Greetings;

Some discussions are being held at the state and local level about presidential compensation. This has become more important as the applicants for presidential positions within the Minnesota State Colleges and Universities have become fewer due to the inequities of our compensation packages compared to equivalent positions in other states.

Over the past year, we have received inquiries from a few foundations who wanted to know what they could do to address compensation issues that had arisen in either trying to keep a current president from being lured away or in attracting candidates to a vacancy on their campus. Also, in our research concerning presidential compensation, we have become aware that in many states campuses similar in size to our larger ones receive foundation support of at least some aspects of the President's compensation package. At the present time, state of minnesota and MnSCU policies do not allow for foundations to contribute in any way to the compensation packages of presidents, although they can, if they wish, pick up some expenses the presidents may incur in the normal conduct of their jobs.

In working with the Subcommittee on Employee Relations concerning changes to the Personnel Plan for MnSCU Administrators, the opportunity has presented itself to get language which would provide MnSCU the tools necessary to be competitive in the area of presidential compensation. One of those tools would be the ability for foundations, if they so choose, to contribute directly to supporting areas of the president's compensation package. The language that would allow this in the plan is necessarily broad and the MnSCU Board of Trustees would need to adopt policies and procedures to cover how this new tool could be used.

If the system is successful in getting the enabling language, a process would need to be created for the development of the necessary board policies that meet the needs of both the board and the foundations. This process would need to include both development directors from the campuses as well as members of the foundation boards.

Let us stress that at this time, the intent is only to get enabling language! Any participation by foundations in the compensation package of a president would be up to the particular foundation board. We will continue to keep you informed and involved as participatory partners in this process.