University of North Florida
Board of Trustees

  • Special Meeting
June 11, 2013
at 9:30 a.m.

Members Present

Carlo Fassi, Fred Franklin, Hugh Greene, Joy Korman, Rad Lovett, Oscar Munoz, Joannie Newton, Lynn Pappas, Myron Pincomb, Gordon Rakita, Lanny Russell, Bruce Taylor

Members Absent

Sharon Wamble-King

Item 1 Call to Order

Chair Taylor addressed those in attendance and call the special meeting to order at 3:02 p.m.

Item 2 Discussion on Presidential Contract with Mr. Paul McConnell, a Consultant Hired by the Board of Trustees

Chair 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.


Based 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.


Mr. 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.


Mr. 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.


Thereafter, 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.


Chair 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.


The 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.


Chair 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.

Item 3 Adjournment

Chair Taylor adjourned the meeting at 11:13 a.m.