Carlo Fassi, Fred
Franklin, Hugh Greene, Joy Korman, Rad Lovett, Oscar Munoz, Joannie Newton, Lynn
Pappas, Myron Pincomb, Gordon Rakita, Lanny Russell, Bruce Taylor
Taylor addressed those in attendance and call the special meeting to order at
Taylor stated that the purpose of this portion of the Board of Trustees meeting
was to discuss with Mr. Paul McConnell, compensation consultant, the results of
his conversation with Board members, his review of the President’s contract and
his analysis of presidential compensation. Mr. McConnell referenced the
“report” and called the Board members attention to the report. Mr. McConnell reminded
the Board that he had individually interviewed each Board member to assess the
President’s performance and to determine what Board members goals were
concerning this process. Mr. McConnell reported that all Board members felt
extremely positive about President Delaney’s leadership and wished to retain
him for an additional term of service. There was concern expressed by a number
of Board members that, given President Delaney’s age and outstanding service to
the university and state, he would be highly marketable for any presidency in
the state of Florida, or perhaps out of state. All Board members expressed a
desire to retain President Delaney and to incentivize him to stay. Thus, Board
members asked that Mr. McConnell consider a contract structure going forward
that would include retention features.
on his conversation with Board members and his review and knowledge of
President Delaney’s performance, Mr. McConnell believed that it was appropriate
to use the state presidents as the comparator group. He noted that President
Delaney had served as interim chancellor and that he would be highly marketable
for any of the State University System presidents.
McConnell then reviewed in detail the compensation report which he had
prepared, including an explanation of his methodology as well as significant
findings. He noted that it is significant that President Delaney is the
youngest president in the State University System and yet he is the third most
senior. Mr. McConnell noted, in summary, that President Delaney’s current base
salary is seven percent below the median, his current cash compensation ranks
fourth among his peers, his contract has a very low retention value, ranking
tenth among his peers, his post-presidential pay ranks seventh, and his total
compensation package is below the 25 percentile, ranking ninth. Overall,
President Delaney’s total package places him ninth out of the 10 universities
reviewed as a part of the compensation study.
McConnell then provided the Board with alternatives for consideration,
including folding performance pay into President Delaney’s base salary, adding
an annual retention bonus, and instituting a new retention bonus plan with a
total value of $375,000 over a five-year term.
there was a discussion by Board on the restructure of the Presidents contract,
including a discussion of moving a portion of the performance pay monies into
an annual retention bonus and keeping a potion for performance pay. There was
also discussion of moving monies from post-presidency to keep a three-year and
five-year lump sum retention bonus. The Board also discussed whether
performance pay ought to be more closely tied to specific goals each year.
Taylor indicated that President Delaney did not wish to increase the overall
value of his package given current and past economic conditions and, more
specifically, the fact that faculty and staff have not received raises in six
years. As such, Chair Taylor suggested that the Board focus on a restructure of
monies within the Presidents contract. The Board unanimously agreed that they
wished to extend President Delaney’s contract for an additional five-year term
and that they wished to structure the contract in a way that, not only is fair
and reasonable, but incentivizes President Delaney to stay for the full term.
Board asked Chair Taylor and Mr. McConnell to discuss these issues with
President Delaney and to come back to the Board with a specific proposal acceptable
to President Delaney, Mr. McConnell and Chair Taylor. The Board agreed that it
would need to meet again to review and approve the specific contract terms so
Chair Taylor could execute a contract over the summer. All Board members agreed
that it would be beneficial to get the new contract in place as soon as
possible and for the new terms to be in place in advance of the Board’s
evaluation of the President in the fall of 2013.
Taylor asked Board members if there were additional concerns or comments
regarding the report provided by Mr. McConnell. All Board members accepted the
report as it was presented.
adjourned the meeting at 11:13 a.m.
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