Addendum #5
NORTHERN MICHIGAN UNIVERSITY
BOARD OF TRUSTEES
Minutes of the Meeting
Of the Executive Committee
Thursday, February 22, 2007
A meeting of the Executive committee of the Board of Trustees of Northern Michigan University was held on Thursday, February 22, 2007, in the Directors Room, Weber's Inn, Ann Arbor, Michigan. It was convened by Chair Samuel S. Benedict at 4:10 p.m. Participating were:
Samuel S. Benedict Chair Douglas B. Roberts
Brian D. Cloyd Mary C. Lukens (ex officio)
In response to a request from the Executive Committee at its December 2006 meeting, the Finance and Administration staff completed a market study on presidential salaries and compensation. The Committee reviewed the study which included Michigan universities and selected similar universities in surrounding states. A table on the institutional characteristics of the universities was also included in the market study. The Committee reviewed information on market adjustments provided to NMU faculty in their current contract. The Committee also reviewed salary information for the President's direct reports and for the academic deans.
Discussion followed and the Committee will recommend that the full Board consider a market adjustment for President Wong.
On a separate matter, the Committee agreed to recommend to the full Board a language change in the President's deferred compensation contract to clarify vesting in the unlikely event of Board termination without cause. This recommendation is in the Formals.
The above recommendations will be presented to the full Board at the May 2007 meeting.
Mr. Benedict adjourned the meeting at 5:00 p.m.
Respectfully submitted,
/signed/
Samuel S. Benedict, Chair
Executive Committee
NORTHERN MICHIGAN UNIVERSITY
BOARD OF TRUSTEES
Minutes of the Meeting
Of the Executive Committee
Monday, April 2, 2007
A conference call meeting of the Executive committee of the Board of Trustees of Northern Michigan University was held on Monday, April 2, 2007. It was convened by Chair Samuel S. Benedict at 9:00 a.m. Participating were:
Samuel S. Benedict Chair Douglas B. Roberts Leslie E. Wong
Brian D. Cloyd Mary C. Lukens (ex officio) (for a portion of the meeting)
The Committee reviewed and finalized a recommendation for President Wong's compensation increase for the 2007-2008 year as follows. The recommendation is in the Formals.
The only significant change from our discussions in February is moving $10,000 from the recommended base salary to the deferred compensation, at President Wong's request.
PRESIDENTIAL COMPENSATION DATA
|
DESCRIPTION |
BASE SALARY |
DEFERRED COMP |
BONUS OR INCENTIVE |
CONTRIBUTION TO RETIREMENT |
TOTAL |
|
NMU 2006-2007
|
$170,000 |
$ 35,000 |
$0 to 15,000 ($10,000)¹ |
$21,250 |
$236,250 |
|
Average for Peers 2006-2007 (Excludes MSU, UofM and WSU) |
217,000 |
20,000 |
7,000² |
27,890 |
264,890³ |
|
Range for Peers 2006-2007
|
150,000 to 285,000 |
0 to 50,000 |
0 to 60,000 |
18,000 to 44,625 |
168,000 to 344,625 |
|
Recommendations for NMU for 2007-2008 |
185,000 |
45,0004 |
0 to 15,000 ($10,000)¹ |
23,125 |
263,125 |
¹ Assumes a $10,000 payout. The Board and President agree to 3-5 annual goals as part of the evaluation that determines the bonus.
² Includes one large signing bonus which is not included in the total average calculation.
³ If you assume a 3.5% increase for 2007-2008, the average total compensation for peers is $274,161.
4 Deferred compensation is provided according to the Northern Michigan University 401(A) Qualified Executive Retirement Plan.
Rationale: The Board is very pleased with the excellent track record of the last three years under President Wong's leadership and:
1. NMU has a long standing policy of paying employees a competitive rate;
2. NMU's president has fallen behind the average compensation of his peers; and
3. The Board recognizes the national competitive nature of the market and wants, to the extent possible, to ensure that President Wong is not tempted to move. Replacing a university president is an expensive endeavor and we see the wisdom in retaining an outstanding president.
Mr. Benedict adjourned the meeting at 9:30 a.m.
Respectfully submitted,
/signed/
Samuel S. Benedict, Chair
Executive Committee