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With Student Fees Rising and Professors at California Universities Talking of Strike Because of Low Pay, Legislation Introduced to Require Openness in Executive Pay Process

By Frank D. Russo
California State Senator Leland Yee introduced legislation, SB 190, yesterday requiring all executive compensation discussions at the University of California (UC) and the California State University (CSU) to take place in public meetings of the Board of Regents or Board of Trustees. He announced this to hundreds of faculty and students at San Francisco State University who like many others across the state are concerned not only about the openness of the process, but about the level of pay and other perks for those at the top of these systems at a time when student fees are rising and other salaries are lagging.
Last month, the CSU trustees provided their top 27 executives with a four percent pay increase, retroactive to July 2006. These same executives received a 19 percent hike just fourteen months earlier. Meanwhile, the CSU faculty is posed to go on strike throughout the 23-campus system. In addition, Governor Arnold Schwarzenegger's recently proposed budget includes a ten percent tuition increase at CSU and seven percent increase at UC.
At that meeting, Lieutenant Governor John Garamendi, who is a member of the CSU Board of Trustees by virtue of his office spoke out publicly and urged caution about the pay raises voted by his fellow board members, signaling he is going to be taking a more active role in that body and probably the UC Board of Regents as well. Although he was the sole vote on that body against the executive pay raises, his statements at the first meeting he attended as a member of the body were striking. As reported by the San Francisco Chronicle, he said, "My recommendation is a delay here. There is time enough for catch-up, but there is also time to poison the well, and that's what I think will happen here….Several key legislators are not happy about the timing of the proposal."
Indeed, Yee's bill is coauthored by Senator Gloria Romero, the Majority Leader of the Democrats in the Senate and Republican Senator Abel Maldonado. Yee himself is the Assistant President pro Tem of the Senate.
SB 190, comes after a series of audits, lawsuits and other revelations have found that the UC and the CSU failed to get public approval from the Regents or Trustees for compensation packages and that some top executives were paid more than what was released to the public.
“For too long the UC and CSU has been acting in secrecy when it comes to determining high-level salaries,” said Yee. “SB 190 will bring much needed sunshine to these discussions, provide members of the media the democratic access they deserve, and help restore the public’s trust.”
Yee himself is a graduate of both the UC and CSU. “As long as the top executives continue to receive exorbitant salaries, we will be unable to keep our universities affordability or attract the most qualified faculty. We should be investing in instruction, not creating a get-rich factory for executives.”
Unlike other public entities, UC and CSU have been holding closed committee meetings to discuss and act upon top executives' salaries, benefits and perks. SB 190 would clarify that both subcommittees and the full Board of Regents or Trustees must meet openly when considering and acting upon top executives' compensation. Specifically, requiring discussion and actions on compensation proposals involving the President/Chancellor; Chancellors/Campus Presidents; Vice Presidents/Chancellors of Academic Affairs, Administration, Agriculture, Budget, Business Affairs, Health, and Human Services; Treasurer; Assistant Treasurer; General Counsel; and Trustees and Regents Secretary to occur in public session.
As an Assemblymember, Yee introduced a similar bill last session focused solely on the UC. While the bill passed with overwhelming bipartisan support in the Senate Education Committee, it stalled in Senate Appropriations. Yee expects a better outcome this year as he is now a member of the Senate Appropriations Committee and the new chair, Senator Tom Torlakson, has been a strong supporter of the bill.
There are elements of SB 190 that are basic good government and involve the public's right to know how decisions are made. Tom Newton, General Counsel for the California Newspaper Publishers Association, said, “SB 190 will give the public an open window into the secret and scandal-ridden compensation practices of the UC Regents and CSU Trustees. This legislation will not only shine some light on executive compensation discussions, but will allow the public to decide for itself whether UC and CSU pay practices are fair and appropriate.”
There also are some basic public policy questions here about the nature of a public university and whether or to what degree, its pay structure should mimic that of private institutions and large corporations. Some will argue that in order to attract the best administrators, UC and CSU must compete with private business. Others will question this and point to the public nature of these institutions of higher learning and ask about whether the level of compensation here really reflects the ethos of public service and dedication to the mission of these bodies.
“Thousands of students turn to this university for the education they need to contribute to California,” said John Travis, President of the California Faculty Association. “Instead of helping students get an education, the administration caters to elite executives who get huge pay raises and golden parachutes.”
"Senator Yee’s legislation will make sure that the University lives up to its public purpose and is held accountable for their actions,” said LaTosha Gardner, Executive Board Member from UCSF, AFSCME Local 3299. “This legislation is an important first step in ensuring the accountability of the University to the people of California.”
For an interesting article in today's press reflecting the views of students, take a look at the UCSD Guardian. There also are reports of those who teach needing to hold down two jobs because of the pay. The Long Beach Press Telegram has a telling quote: "We have professors we call `freeway flyers' because they have to go campus to campus to make ends meet."
At least with SB 190 we will be able to have a public debate about these questions involving these important institutions and the direction as a state we want them to be going. UC has a national and international reputation. CSU is the largest university system in the United States.
Comments
Senator Lee is pecisely correct. Congratulations.
The exec. at the universities, like the faculty, are public employees. They pretend to be corporate giants, and they expect to be paid like corporate robber barrons.
I am confident that we could get the same level of talent at 50% of the pay of the executives- and it would not be exploitation.
Posted by: Duane Campbell at February 8, 2007 08:48 PM
Thanks for posting on SB190 and our California Faculty Association efforts to bring sunshine to the CSU board of trustees. Our statewide 'rolling strikes' on various CSU campuses this month are also aimed at winning a fair contract and support students in rolling back proposed tuition increases. Our SF State action included a march to our adminstration building, spoken word poetry from Ethnic Studies students and music. We are fortunate to have such strong student and community support at SF State, where Senator Yee graduated and where he used to teach as a lecturer as well.
Posted by: Eric Mar at February 9, 2007 01:26 AM
Senator Lee is a fine man and an excellent public servant with qualities so rare in Sacramento today. The educators have a great deal of voting clout and they need to realize the billions being spent on prisons. The guards are paid ridiculous salaries with only GED training, much more than educators which is wrong! With $10 billion proposed to punish more mentally ill and addicts instead of healing them, that will come out of education funds. Why aren't the educators challenging the prison mess that has literally broken our state and continues to do so. It is a much wiser investment to spend money on the front end as no matter how hard anyone tries, it is impossible to punish the sickness out of people. They can be healed and young people can be supported to help them not to become mentally ill or substance abusers. This work costs money, we need to elevate the educators in our society, not the punishers. More outcry is needed from educators on this topic.
Posted by: Stephanie at February 10, 2007 11:48 AM
I also spoke at the press conference. I would like to share what I said because it wasn't included in the article. (There were other good comments as well, including from CSU and UC students.) Faculty often get the press, but we are all in this together and the CSU and the state need us. I work at SF State in the Capital Planning, Design and Construction office. I am also president of the local staff union (a volunteer position), representing over 1,300 non-faculty staff on campus. Here is what I said:
Staff, faculty, and students are not three separate entities all selfishly asking for the state to fill our needs at the expense of the others and from the public pocketbook. We are joining together to represent the best interests of the state and taxpayers who have trusted and invested in us through their support for the CSU. We can't trust the so-called trustees to do that job anymore. We need to open up the doors and stop them from doing the public's business in the dark, true, but it's more than that. The state needs to know that their investment in the CSU is worthwhile. We in the CSU have all been asked to make sacrifices for the public good and it’s disgusting that CSU leaders don't feel like they too have to do that, but the message needs to be to the state: a healthy CSU means a healthy California, that the investment in the children of working families is worth it. Don't give up on us just because we have poor leadership. We are the real leaders in the CSU. Let’s make them listen to us. Support Senator Yee and SB 190.
Posted by: Russell Kilday-Hicks at February 15, 2007 11:02 AM
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