Approved – 2/6/02
Revised – 8/22/02
College of Business
Teaching Buyout Pricing Policy
For CoB Faculty
The College of Business Pricing Policy for teaching buyouts of CoB faculty should
reflect the costs and benefits of such buyouts with respect to their impact on research and
service contributions and their impact on the delivery and quality of offerings in the
affected program, programs, or department majors.
The following are the per course buyout guidelines:
1. For a single course buyout that is neutral with respect to research and service
contributions, the buyout price will be 1/9th of the faculty member's base pay plus
an equal share of normal benefit charges. There will be no benefit charges if the
buyout is internal to the COB. This rate, for example, would apply to another
department or college purchasing a COB faculty member's services to teach in
another program.
2. For a buyout of a faculty member's entire teaching load, research, and service, the
buyout price will be 3/9th the faculty member's base pay plus an equal share of
normal benefit charges. Such buyouts would apply when a faculty member leaves
campus and is not participating in service, advising, and other COB activities. For
programs using a model of a five-week off-campus teaching assignment that allows
a faculty member to participate in service activities for the remaining five weeks,
the buyout price will be 2/9th of the faculty member's base pay plus an equal share
of normal benefit charges. In general, buyouts that materially decrease research and
service contributions should be discouraged.
3. For a buyout that adds significant value to the COB in terms of additional research
or service support, for example a grant, an appropriate portion of the additional
value should be credited against the faculty member's buyout cost. In such cases
where the buyout agreement is less than 1/9th, the Department Chair or Director will
provide the Dean and Chair or Director affected with a written explanation of the
terms and justification for the buyout. On the advice from the appropriate
Department Chair or Director, the Dean may choose to provide supplemental
funding for any program adversely affected by the buyout, or propose a different
rate. This type of buyout should be a rare occurrence.
4. When a buyout occurs, the funds will be moved into the College through a transfer
at the end of the quarter in which the buyout occurs. Buyout funds will accumulate
centrally in the Dean’s office and departments affected by the buyout can request
funds to replace lost capacity. Any overload salary paid for the teaching assignment
is not included in the buyout. Any surplus will be held in a fund that will provide
resources for faculty development and/or new program development.