USM Board of Regents Accepts Consultants' Report on New Compensation Philosophy
Compensation for Three Presidents Adjusted
Adelphi, Md. (Sept. 15, 2017) -- The
University System of Maryland (USM) Board of Regents (BOR) today approved a
recently completed analysis of compensation for senior system executives,
including the chancellor and presidents of the 12 institutions, as well as new
guidelines for remunerating them based primarily on successful performance. In accordance with the new analysis and
guidelines, the BOR also voted to increase the compensation of three university
presidents.
In 2016, the
BOR commissioned Sibson Consulting, an independent HR consultant, to review
USM’s current system for compensating senior executives. The analysis was designed to serve as the
basis for a new long-term compensation framework that fosters USM’s mission of
being among the best higher education enterprises, individually and
collectively, as judged by its peers and as recognized by the citizens of
Maryland based on cutting edge research, up-to-date teaching practices, and
service contributions to its communities.
Sibson’s
report determined that while the system’s governance structure of a single
board overseeing all institutions is consistent with most public systems, the
executive compensation process could be further improved through the adoption
of a more uniform set of tools and approaches.
The report’s recommendations included the creation of an executive
compensation philosophy that outlines goals and desired objectives of the
executive compensation program, as well as more systematized performance
assessments and periodic remuneration reviews to ensure that individual
presidential compensation packages reflect successful performance and continue
to be competitive with their peers in the national market.
At its
regularly scheduled September 15 meeting, the BOR voted to approve the Sibson
report and to approve a compensation philosophy that was created based on the
report’s recommendations. Also based on
Sibson’s recommendations, the BOR reviewed the compensation packages of the
current chancellor and presidents and voted to grant increases to three of the
12 institution leaders.
The
compensation philosophy explicitly ties compensation to strong performance, as
determined by regular assessments of progress against specific annual goals. Other factors include the state’s financial
condition, equity and retention concerns and the competitive market.
“USM
strongly believes in a high-performance culture that is supported and modeled
by its executives,” the document states. “Compensation must be linked to
performance. It should also recognize the value of successful experience in its
leaders, both for new leaders and for leaders who have sustained successful
performance over a long period of time.”
“An
excellent public university system is key to growing Maryland’s economy and
creating jobs and opportunities for our citizens,” said James Brady, Chairman
of the Board of Regents. “An excellent
state higher education system requires excellent students, excellent faculty
and excellent university leadership. To
attract and retain this caliber of individual, including nationally recognized
leaders, we must offer compensation packages that are competitive with what
these individuals could earn in other states.”
“At the same
time, we must ensure that strong and successful performance is the primary
basis for all compensation decisions,” Brady continued. “Performance and accountability must be
key. In accepting the Sibson report,
approving the new compensation philosophy and, based on the data and new
guidelines, adjusting the salaries of three high-performing presidents, the Board
of Regents today further strengthened the tie between pay and performance for
all USM leaders. Maryland is fortunate
to benefit from the abilities of such high-caliber stewards of our students’
collective futures.”
The three presidents – University of Maryland, College
Park’s Wallace Loh, University of Maryland University College’s Javier Miyares,
and Salisbury University’s Janet Dudley-Eschbach – were awarded increases of
$75,000, $50,000 and $20,000, respectively, based primarily on strong
performance as the leaders of their respective institutions. In the cases of Loh and Miyares, the
increases also bring their compensation closer to the median earned by peers at
comparable institutions nationwide. According
to an analysis included in the Sibson report, Loh’s compensation stands at the
43rd percentile compared to presidents of similar universities,
while Miyares’ stands at the 37th percentile. The newly approved compensation philosophy
targets the 50th percentile on average for system presidents,
dependent on several other factors, strong performance first among them.
All
increases begin retroactively on July 1, 2017.
Contact: Mike Lurie
Phone: 301.445.2719
Email: mlurie@usmd.edu
