The Need for Accountability at the University of California

UC claims that in order to remain competitive with other universities and institutions it needs to pay more to recruit and retain top talent. Still, if UC’s top executives are so talented and come at such a high price to students and taxpayers, why should it be acceptable that they are such poor managers of the public’s money, of university employees, and of student and patient services? Scandal after scandal plagues the University and its executives – from quality of care issues at UC’s medical centers to financial irregularities throughout the system.

Excessive Pay

Since UC employees first brought the issue of excessive executive pay to the public’s attention in 2005, scores of articles have appeared in the press detailing large-scare irregularities in the pay and perks awarded to high-level administrators. From a Provost’s $125,000 relocation payment to move 70 miles to a Chancellor’s new $30,000 dog run, to the Regents disavowing any knowledge of a variety of outrageous salary actions, the UC executive pay scandal has it all. And, it’s not just workers who’ve taken issue with UC’s excessive executive compensation. Public officials, students, and even UC’s faculty have criticized the University and its president for continuing the practice of offering high pay and executive perks even as UC faces unprecedented budget shortfalls.

Still, Regent Richard Blum has assured Californians that the University is better managed under current President, Mark Yudof. But, the fact remains that overly generous pay packages for executives – including large severance packages for executives who then accept employment elsewhere in the UC system – have continued since President Yudof took over in June 2008. And, despite President Yudof boasting in 2009 that he was introducing a 5% pay cut for 30 top executives as a way to ‘share in the pain’ of addressing the University’s budget woes, he and nine Chancellors had been recently hired at salaries that already averaged 22% more than their predecessors.

UC Regents

UC’s Board of Regents is made up of 26 voting members, 18 of which are appointed by the Governor of California for 12-year terms. Seven of the remaining Regents are ex officio members including the Governor and Lieutenant Governor, Speaker of the Assembly, Superintendent of Public Instruction, UC President, and the President and Vice President of the Alumni Associations of UC. There is one Student Regent appointed to the Board for a one-year term.

Excessive Pay

The Regents have the power and authority to set policy and make decisions for all of UC, and all actions of the University are done in their name. Under current state law, the Regents are allowed full powers of organization and governance while the California’s Constitution clearly dictates that “Regents shall be able persons broadly reflective of the economic, cultural, and social diversity of the State…”

Still, Regent Richard Blum has assured Californians that the University is better managed under current President, Mark Yudof. But, the fact remains that overly generous pay packages for executives – including large severance packages for executives who then accept employment elsewhere in the UC system – have continued since President Yudof took over in June 2008. And, despite President Yudof boasting in 2009 that he was introducing a 5% pay cut for 30 top executives as a way to ‘share in the pain’ of addressing the University’s budget woes, he and nine Chancellors had been recently hired at salaries that already averaged 22% more than their predecessors.

But UC’s Regents are a far cry from reflecting California’s socio-economic diversity. Regents are mostly wealthy lawyers, politicians and businesspeople. Political money, political allegiances and business relationships rule where appointments to the Board of Regents are concerned, and several regents have very close personal and financial ties to the Governor. An appointment to the Board of Regents is yet another coveted resume builder for the state’s elite class of high-achieving investment bankers, corporate lawyers, and power brokers – never mind the ordinary Californians who the University is supposed to be here to serve.

Finally, by virtue of their extremely deep reach into California’s corporate and political world, many Regents fill their roles on the Board while coming dangerously close to what amount to potential conflicts of interest. Is this really the best UC can do to meet the needs of all Californians?