Editorial: Paychecks - and chancellors - out of control
If regents won't take charge, governor and lawmakers must
Published 2:15 am PST Sunday, January 22, 2006
Story appeared in Forum section, Page E6

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The perks, payoffs and golden parachutes provided to top University of California administrators are outrageous, and they reflect a culture of excess and lax oversight created by none other than the UC Regents. Given the scope of the scandals, reported by the San Francisco Chronicle and other papers, you might have expected the regents to take bold action and reassert their fiduciary responsiblity while meeting in La Jolla last week.

Instead, the regents did a masterful job of creating a veneer of accountability while vesting more authority in UC President Robert Dynes to set salaries reaching as high as $792,000.

Under policies approved Thursday, the regents will continue to approve any raises given to the 32 most senior positions, including that of Dynes. They also must sign off on "separation agreements" larger than $100,000. That means that administrators such as Dynes and UC Davis Chancellor Larry Vanderhoef can no longer negotiate $460,000 golden parachutes without approval, such as the one they put together for former Vice Chancellor Celeste Rose.

Separately, however, the regents decided to give Dynes greater latitude in increasing executive pay, as long as it doesn't exceed a pre-approved salary range.

These salary ranges give Dynes plenty of discretion - too much, in our view. The lowest bracket ranges from $131,000 to $191,000. The highest ranges from $495,000 to $792,000.

All this comes as reporters continue to dig up more items in the Parade of Perks. The San Diego Union-Tribune reported last Wednesday that UC San Diego Chancellor Marye Anne Fox was paid $248,000 for a sabbatical she had earned at her previous university, but did not take. That undisclosed payout - revealed through an open records request - brought Fox's first year salary at UC San Diego to $700,000, making her one of the high-paid chancellors in the country.

It was also interesting to read, in the Santa Cruz Sentinel, that UC Santa Cruz built a $30,282 dog run for the canine companions of Chancellor Denice Denton, while spending $600,000 on renovations to the chancellor's home.

Clearly the University of California needs to remain competitive in attracting administrative talent. But it is equally clear that the perks and payoffs have gotten out of hand, especially at a time when UC campuses have seen cuts and tuition raised in recent years. The Regents need to assert control over the process, but it is doubtful they will. This board no longer runs the university system. The chancellors do. In recent years, UC chancellors have created their own fiefdoms and power structures, turning the regents into mere figureheads.

Led by Assembly Speaker Fabian Núñez, the Legislature has requested an audit of UC compensation practices by May. Sen. Abel Maldonado, R-Santa Maria, has also introduced SB 1181, which would require the California Postsecondary Education Commission to produce a biannual report on academic salaries. Under Maldonado's bill, approval of a UC campus' annual budget would be held up if it didn't provide timely information to the CPEC.

Those steps are in the right direction. Lawmakers and Gov. Arnold Schwarzenegger must exercise some of their limited leverage over chancellors, and the budget process is a good place to start.