Docstoc

San Francisco Chronicle San

Document Sample
San Francisco Chronicle San Powered By Docstoc
					San Francisco Chronicle Watchdog Journalism Title: UC Pay Credit: Tanya Schevitz and Todd Wallack November 5, 11 and 13 2005 Pages A1 and A15

A1, 11/5/2005

No. 2 official at UC quits suddenly
University probes possibility of favoritism in hiring of friend and son of provost
By Todd Wallack and Tanya Schevitz Chronicle Staff Writers The University of California's second-in-command, Provost M.R.C. Greenwood, abruptly resigned Friday, and another senior administrator was placed on leave after the college system launched an investigation into possible favoritism in hiring. University officials said the conflict-of-interest inquiry had been opened after The Chronicle, in the course of researching an article, posed questions about the hiring of two people with ties to Greenwood -- her son as well as a friend with whom she owned rental property. According to UC President Robert Dynes, the university is investigating the possibility of impropriety in Greenwood's decision last year to promote her friend, UC Santa Cruz Vice Provost Lynda Goff, to jobs at UC's headquarters in Oakland. Goff, 56, was first hired as a faculty associate and then as director of UC's new science and math initiative, which carries a salary of $192,100. In addition to being friends, Greenwood and Goff owned rental property together in Davis at the time. "It appears that Provost Greenwood may have been involved in Dr. Goff's hiring to a greater extent than was appropriate, given her business relationship with Dr. Goff,'' said Dynes in a written statement. Repeated attempts to reach Greenwood and Goff for comment were unsuccessful. Dynes said he had accepted Greenwood's resignation Friday, a few days after The Chronicle asked UC officials for information about her financial relationship with Goff and her role in Goff's hiring. UC said it was unaware that the pair had jointly owned income property until informed by The Chronicle earlier this week.

1

In addition, UC is looking into whether one of Greenwood's subordinates, Winston Doby, did anything improper to help Greenwood's son, James Greenwood, land a job in August as a paid senior intern at UC's new campus in Merced. The one-year position includes a $45,000 salary. UC said it had placed Doby, vice president of student affairs, on paid leave pending the completion of the investigation. "Let me stress there is no presumption of wrongdoing and that the university expects to complete its review of these matters shortly,'' Dynes said. The Chronicle filed a request with UC on Oct. 25 for information about James Greenwood's hiring at the Merced campus, a request the university responded to Friday after announcing its investigation. Neither Doby nor James Greenwood could be reached for comment. Friday's developments were particularly stunning because Greenwood, 62, had been highly regarded in her 16 years with UC. She served as chancellor of UC Santa Cruz for eight years before being promoted in February 2004 to UC provost, overseeing the entire 10-campus system and serving as UC's No. 2 administrator. "This will be a real blow,'' said Patrick Callan, president of the nonprofit National Center for Public Policy and Higher Education. "No senior person has gone down for this sort of thing for a long time." Callan said the resignation should be a wakeup call for the university to take a harder look at itself in the future. "We should not have to rely on the press to keep these situations from arising,'' he said. Greenwood, a nationally recognized leader in science and higher education policy, was credited with revitalizing the UC Santa Cruz campus and expanding its programs. She has also held other high-profile positions, including working as a director for science in former President Bill Clinton's Office of Science Technology Policy. She once headed Vassar College's department of biology and served in several positions at UC Davis before moving to UC Santa Cruz. Dynes said Greenwood, who remains a member of UC's faculty, planned to return to teaching. Greenwood has the option to return to UC Davis, where she taught earlier, but UC spokesman Michael Reese said the details, including her new salary, hadn't been determined. "I'm deeply saddened,'' said Cliff Brunk, chair of UC's Academic Senate, which represents faculty. "She was an outstanding chancellor at the Santa Cruz campus, and she has been an outstanding provost." Brunk said Greenwood is a "principled individual" who probably had committed an oversight.

2

Separately, Brunk also said that Doby, 65, is highly regarded within the UC system. Before moving to the UC president's office in Oakland, Doby worked for three decades at UCLA, including serving as a vice chancellor for student affairs. UC leaders have credited him with improving educational opportunities for students of all backgrounds. He co-founded the Los Angeles-based Young Black Scholars Program, which helps prepare students for college. Dynes appointed Wyatt Hume, executive vice provost, to fill in for both Greenwood and Doby temporarily. Despite the cloud over Goff's promotion, Dynes said the investigation should not reflect poorly on her. "This involves only the appropriateness of Provost Greenwood's role in her hiring," he said. Similarly, Dynes said UC was not questioning James Greenwood's job performance at UC Merced, "where he is reportedly making a valuable contribution." This is not the first time Greenwood has faced controversy. Some regents objected last year when she was hired as provost with a salary of $380,000 -- nearly $100,000 more than her predecessor. At the time, Dynes argued she needed the higher salary to cover the cost of buying a home near UC's headquarters in downtown Oakland. Like other UC chancellors, Greenwood previously received free housing on campus. In addition, her total compensation turned out to be higher than was publicly announced at the time, The Chronicle has learned. In addition to her salary, UC gave her a $125,000 relocation incentive to move the 70 miles from Santa Cruz to Oakland. That was in addition to $17,950 for temporary housing, $9,527 for moving expenses and a lowinterest loan to buy a condo in Oakland. E-mail the reporters at twallack@sfchronicle.com and tschevitz@sfchronicle.com. A1, 11/11/2005

UC provost who quit got questionable perk
$125,000 payment for housing possibly violated policy
By Todd Wallack and Tanya Schevitz Chronicle Staff Writers

UC President Robert Dynes appears to have violated university policy by quietly granting M.R.C. Greenwood a $125,000 cash payment to move from Santa Cruz to Oakland when she was promoted to provost last year.

3

Dynes, who acknowledged authorizing the payment to help Greenwood buy a condominium overlooking Lake Merritt in Oakland, said he did nothing improper. The possible violation emerged after Greenwood's sudden resignation last week from the university system's second-highest post. Greenwood stepped down from her post Nov. 4 after UC began investigating the propriety of two recent hires with ties to Greenwood -her son and a business partner. She remains employed by the university system. As reported by The Chronicle last week, UC awarded Greenwood a $125,000 "relocation incentive payment" last year to help her make the 70-mile move to Oakland -- in addition to $17,950 for temporary housing, $9,527 for moving expenses and a low-interest loan to buy the Oakland condo. Prior to the move, Greenwood was chancellor at UC Santa Cruz, where she lived rent-free in housing provided by the university. A UC policy covering relocation costs explicitly forbids the university from giving relocation allowances to people who are already university employees or who live in California. The language is even underlined in one section of the policy. In addition, when allowances are given, UC policy limits the amount to 25 percent of the person's base salary. In Greenwood's case, the allowance works out to 33 percent of her $380,000 salary. The written policy, approved six years ago by UC's vice president of financial management, does not appear to allow for any exceptions, even for the UC president. "He should either scrap the policy or live with the policy,'' said Robert Stern, president of the nonpartisan Center for Governmental Studies in Los Angeles. "He should not have the policy and not follow it." After The Chronicle pointed out the apparent violation, UC spokesman Michael Reese said Friday that his office erred earlier when it told The Chronicle the payment was a "relocation incentive." After doing additional research, Reese said, he learned it is actually a "faculty housing assistance allowance," which is governed by an entirely different policy. Dynes also said Friday that the payment was actually a faculty housing allowance. "I do not believe there is any 'violation' of policy,'' Dynes said. "I had full authority to offer the allowance in the amount that I did." But that raised more questions. UC Regent Judith Hopkinson said it would have been odd to give Greenwood a "faculty housing allowance," even though she remains a tenured faculty member, because Greenwood has been an administrator for 10 years and was promoted to fill an administrative post at UC's headquarters. According to UC policy, the money is intended to help UC campuses "alleviate local housing problems for eligible faculty."

4

"It would be unusual for sure for her to be paid under the faculty policy,'' Hopkinson said. And even if Greenwood did qualify for the program, the policy limits payments to $53,300 -- less than half what Greenwood received -- unless a waiver is granted by the Office of the Provost and by the senior vice president for academic affairs. In this case, Dynes said he made the decision to make an exception on his own. UC spokesman Reese said Dynes didn't need approval from anyone else -- regardless of what the policy says -- because his office created the policy. "It's a presidential policy,'' Reese said. "So, why would he go to the provost to change his own policy?" However, another UC observer said that's beside the point and that as long as a policy is in place, Dynes should follow it. "These kinds of things don't help the confidence of the public,'' said Pat Callan, president of the National Center for Public Policy and Higher Education in San Jose. "The university has processes for changing its policies. If it needs to change them, then it can." UC also didn't publicly report the $125,000 payment when it appointed Greenwood last year. Instead, UC told reporters she would be paid $380,000 a year. The Chronicle found out about the award only after obtaining Greenwood's payroll records under the California Public Records Act and noticed that she was paid far more than her official salary. It remains unclear how much the UC Board of Regents was told at the time. Reese said Dynes told the regents about the $125,000 in closed session at the Feb. 23, 2004, meeting, when the regents approved her salary. But the minutes UC provided to The Chronicle do not contain a reference to the $125,000 payment, and Reese said the meeting was not recorded. In addition, some who attended the closed session, including former Regent Velma Montoya, said they do not recall the $125,000 being mentioned. However, Hopkinson said she recalls some general discussion about a relocation package. In response to a Public Records Act request, Reese said Greenwood didn't have an employment contract. And he said there weren't any other documents related to Greenwood's $125,000 payment, such as a letter or form granting an exception. However, to respond to The Chronicle's request, UC created a new list this week of what Greenwood was promised when she became provost, including the $125,000. Regardless, Dynes said, the $125,000 was justified to help Greenwood buy a house because she would be giving up free, university-provided housing in Santa Cruz.

5

"The $125,000 was intended to provide her the financial support she needed to buy and furnish a new home in Oakland,'' he said. "I did not, and still do not, think that was or is unreasonable in context,'' he told The Chronicle. Separately, UC is continuing to investigate Greenwood's role in promoting her friend Lynda Goff to two jobs at UC headquarters in Oakland. UC said it didn't realize that the two owned rental property together in Davis at the time until asked about it by The Chronicle. In addition, UC has placed one of Greenwood's underlings, Winston Doby, on paid leave while it investigates whether he did anything improper to help Greenwood's 43-year-old son, James Greenwood, win a paid internship at UC Merced. E-mail the writers at twallack@sfchronicle.com and tschevitz@sfchronicle.com. A1, 11/13/2005

UC piling extra cash on top of pay
8,500 top staffers pulling down at least $20,000 each in bonuses, compensation
By Tanya Schevitz and Todd Wallack Chronicle Staff Writers When the University of California hired David Kessler as dean of the UCSF School of Medicine two years ago, the university announced he would receive "total compensation" of $540,000 a year. Turns out he actually got much more. In addition to his salary, he received a one-time relocation allowance of $125,000, plus $30,000 for six months' rent and a low-interest home loan. There was more. He was reimbursed for his actual moving costs from Connecticut, and his family received round-trip airline tickets to go house-hunting in the Bay Area. Kessler is hardly unique. Despite UC's complaints that it has been squeezed by cuts in state funding and forced to raise student fees, many university faculty members and administrators get paid far more than is publicly reported. In addition to salaries and overtime, payroll records obtained by The Chronicle show that employees received a total of $871 million in bonuses, administrative stipends, relocation packages and other forms of cash compensation last fiscal year. That was more than enough to cover the 79 percent hike in student fees that UC has imposed over the past few years.

6

The bulk of the last year's extra compensation, roughly $599 million, went to more than 8,500 employees who each got at least $20,000 over their regular salaries. And that doesn't include an impressive array of other perks for selected top administrators, ranging from free housing to concert tickets. None of that was mentioned in a consultant's report the university released in September saying UC executives' salaries are 15 percent below those of their peers at other major universities. The report, by Mercer Human Resource Consulting, was part of a proposal to UC's Board of Regents to consider management, faculty and staff pay raises. "Oh, my word," said Faith Raider, a research analyst for the American Federation of State, County and Municipal Employees Local 3299, when told of The Chronicle's payroll findings. "I follow this stuff pretty closely, and I am astounded at some of these figures. I think it's been a closely held secret." Her union represents 17,000 custodians, food workers and other lower-paid employees within the 10-campus university system. "If most people knew about this type of spending, they'd be outraged,'' Raider said. Such extra compensation is not uncommon in higher education or private enterprise. Like big companies, elite universities around the country give top employees bonuses and other compensation. UC officials say the university relies on its payments to attract talented researchers and administrators and needs to make the payments to compete with other colleges around the world. "Given today's fierce competition for talent, getting and keeping the best people for certain positions sometimes requires compensation packages that may look excessive on the outside, but that reflect true competitive realities,'' said UC President Robert Dynes. "In many cases, these offers include one-time funding that should not be confused with ongoing compensation." UC spokesman Paul Schwartz also noted that UC funds its payroll from a variety of sources, including state funding, research grants, private donations, medical fees and tuition. But some observers say a public college system, like UC, could be more public about its pay. For instance, when UC appoints new administrators, it normally only reports the base salary -- excluding moving stipends, housing allowances, car allowances and other forms of pay. "In my mind, there is absolutely no question it should be disclosed,'' said UC Regent John Moores, owner of the San Diego Padres baseball team. "The university should be transparent. We are not transparent."

7

Another regent said the idea is at least worth considering. "Maybe we should disclose that,'' said Regent Judith Hopkinson, "but we have not in the past." In September, UC released the Mercer report, which university officials said proves their employees are underpaid. But the study focused on employees' base salary, and excluded some other forms of cash compensation -- such as relocation stipends. "We should be comparing full compensation, including the perks, not just the salary, because when you look across the country, you shouldn't be comparing apples to oranges," said Velma Montoya, an economist who served on the UC Board of Regents for 11 years until her term ended in March. UC officials said bonuses, relocation allowances and other compensation are found in at least 20 individual categories, but couldn't break down the amounts handed out from each category. Nor could officials say how much came from tax dollars or from other sources, such as private research grants. The university's payroll database lists each employee's base salary and total extra compensation, but does not show what the extra compensation was for. "It seems to me that UC should be willing to account for that,'' said UC Davis law school Professor Daniel Simmons, a former chairman of UC's Academic Council. "There should be oversight." Even UC regents typically don't find out about the extra pay. Though UC policy generally requires regents to approve salaries above $168,000 at public meetings, UC administrators are usually free to give employees other compensation on their own. UC's payroll database, however, shows that 4 in 10 employees receive some form of extra pay on top of salaries and overtime -- from a student at UC San Diego who earned an extra penny to two UCSF doctors who received more than $1.4 million each. Examples of typical forms of extra compensation are: -- Bonuses -- Judith Rothman, an associate vice chancellor and dean at UCLA, received a $37,000 "campus incentive award" on top of her $183,400 salary last year. UCLA officials said Rothman, who earned a similar award the previous year, received extra money because she took on additional work when the university left another position vacant. There hasn't been a study of bonuses throughout the UC system, but officials said they are granted for extra duties or for meeting or exceeding established goals. Critics say many of the university's low-paid employees have to take on extra work without additional compensation. -- Relocation allowances -- Michael Schill, dean of UCLA's law school, was given an annual salary of $290,000 and then received a $270,000 housing allowance when he

8

arrived from New York University in August 2004. UC also paid his actual moving expenses. UC administrators say they need to offer such allowances to recruit the best employees and to speed their transition to UC jobs. -- Housing/car allowances -- When Lynn Boland became acting human resources director at Los Alamos National Laboratory last year, UC gave her $83,383 to cover her rent, car lease and other living expenses. That was on top of her $161,000 in salary and other cash compensation. A UC spokesman said Boland was reimbursed for "taxable out-of-pocket expenses." Like other major university systems, UC generally gives senior employees auto allowances, currently totaling $8,916 per year. -- Administrative stipends -- Even as the UC system was hit with allegations of mismanagement in its oversight of the nation's weapons laboratories, it handed out administrative stipends to officials for their work on lab issues. Two UC public relations executives, Michael Reese and Scott Sudduth, each got annual stipends of $18,000 for "additional responsibilities" -- bringing their pay to $200,000 each. The stipends, which went into effect January 2003, were originally approved by the UC president and the regents' chair for six months. But nearly three years later, both executives are continuing to receive the extra pay. UC explained that such stipends, like bonuses, are compensation for extra responsibilities assumed by the employee. Critics say that such stipends were not given to faculty who have been asked to teach more classes as enrollment outpaced hiring, or to low-paid staff who have had to pick up extra responsibilities to cover for unfilled positions. -- Revenue-sharing -- In addition to their base salaries, which are comparatively low, some UC physicians also receive a percentage of the money generated from seeing patients. Two skin pathologists at UCSF, for instance, each earned more than $1.5 million last year, largely by analyzing tens of thousands of skin samples underneath a microscope to look for cancer and other diseases. UC officials said the duo -- Drs. Philip E. LeBoit and Timothy H. McCalmont, oversee a thriving practice that generated $10 million in revenue, largely profit, and drew patients from around the world. -- Outside income -- In addition to the pay from UC, the university's prestige and flexible schedules allow many top employees to add to their earnings with outside lectures, consultant and board positions -- including work done during their normal workweek. For example, UCSF Dean David Kessler, a former commissioner of the U.S. Food and Drug Administration, earns tens of thousands of dollars serving on advisory boards for several firms, including Fleishman-Hillard, the public relations firm. And his colleague, UCSF Chancellor Michael Bishop, had more than a dozen sources of moonlighting income -- including lectures, research and consulting -- in addition to his annual university pay of $358,899. UC policy allows faculty and some other senior employees to spend up to 48 workdays a year (nearly 10 weeks) on outside paid work without having to take vacation time. UC says such work benefits the university because its employees are educating the public

9

about the university and making important contacts that could lead to donations and support. Meanwhile, the university system's 208,000 students are paying more than ever. Student fees over the last four years have jumped from $3,429 a year to $6,141. The UC Regents are expected to vote Wednesday on a proposal to raise fees an additional 8 percent or $492 for next year. "It's ludicrous to increase student fees ... when you're talking about executive officers making this much money, and no one knowing about it," said Anu Joshi, a UC Berkeley graduate student and president of the systemwide UC Student Association.

CHART (1): E-mail the writers at tschevitz@sfchronicle.com or twallack@sfchronicle.com.
Bringing in the big bucks Here are UC's highest-paid employees based on total compensation. Base salary is a small fraction of their total pay. Top paid UC employees/Title pay Jeff Tedford Football coach $1,562,453.14 Philip E. LeBoit Professor of medicine $1,516,450.75 Ronald W. Busuttil Professor of medicine $1,507,289.12 Timothy H. McCalmont Professor of medicine $1,502,671.20 Benjamin Howland Basketball coach $1,020,000.00 Tom R. Karl Professor of medicine $906,508.37 Jan Paul Muizelaar Professor of medicine $857,054.14 Ben Braun Basketball coach $847,333.37 Kee D. Kim Campus Salary '04-'05 total

Berkeley San Francisco Los Angeles San Francisco Los Angeles San Francisco Davis Berkeley

$152,590.14 $91,306.44 $246,415.08 $78,496.44 $150,000.00 $90,752.88 $116,600.04 $147,500.00

10

Asst. professor of medicine Davis $776,942.64 Robert N. Weinreb Professor of medicine San Diego $732,688.57 Khalil M. Tabsh Professor of medicine Los Angeles $720,000.00 . Top paid UC administrators Title Robert C. Dynes President M.R.C. Greenwood * Provost Joseph Mullinix Senior vice president Bruce Darling Senior vice president Lawrence C. Hershman VP - Budget W.R. Gomes VP - Agriculture Michael V. Drake** VP - Health S. Robert Foley VP - Labs Linda M. Williams Associate president

$63,200.04 $129,882.54 $139,584.00 '04-'05 total pay $403,916.16 $520,069.26 $381,165.92 $277,916.16 $216,016.08 $236,115.96 $358,915.92 $364,949.35 $208,970.00

* - recently resigned ** - Made chancellor of UC Irvine in July 2005 . '04-'05 UC's median payrolls median Chancellor $307,066 Professor $136,100 Director $99,966 Associate professor $85,629 Assistant professor $80,000 Clinical nurse $64,983 Electrician $60,761 Administrative specialist $42,695 Custodian $22,867 '02-'03 median $280,066 $130,000 $97,194 $82,440 $77,866 $60,117 $58,691 $42,853 $24,159 Change % 10% 5% 3% 4% 3% 8% 4% 0% -5%

CHART (2): OVERALL PAYROLL Over the last few years there has been an increase in the UC’s payroll.

2002-03 Total: $8.55 billion Base pay: $7.69 billion Overtime: $109 million Other*: $756 million . 2003-04 Total: $8.91 billion

11

Base pay: $7.99 billion Overtime: $108 million Other*: $810 million . 2004-05 Total: $9.23 billion Base pay: $8.24 billion Overtime: $114 million Other*: $871 million * Includes bonuses, auto allowances, housing allowances and other pay The Chronicle

A15, 11/13/2005

Other perks include parties, gifts, travel
By Tanya Schevitz and Todd Wallack Chronicle Staff Writers Lavish parties. Pricey gifts. Club memberships. In addition to their cash compensation, many senior UC employees receive significant fringe benefits. A partial list includes: -- Housing: Some employees receive free or subsidized housing near campus, including spacious homes (and in some cases, mansions) reserved for chancellors. UC also issued thousands of low-interest mortgages to administrators and faculty, including an $850,000 loan to Michael Schill, dean of the UCLA law school, to buy a $1.2 million Los Angeles home. The loan included a 3 percent interest rate, well under the best rates available from banks. UC, however, refused to provide the names of most UC employees who received the loans. -- Jobs: To recruit top managers, UC often makes a special effort to find a job for the person's spouse. Earlier this year, for instance, UC created a new $192,000 position for the partner of UC Santa Cruz's incoming chancellor, Denice Dee Denton. When UC Riverside Chancellor France Cordova took the helm in 2002, UC hired her husband to fill a new administrative job that pays $81,200 a year. UC officials say those hired into such positions are well-qualified. -- Entertainment: Administrators routinely bill the university for meals and event tickets. UCLA Chancellor Albert Carnesale, for instance, charged $11,000 season tickets to the Hollywood Bowl. Meanwhile, UC reimbursed UCSF Chancellor Michael Bishop for a $435 dinner with a potential job candidate and a faculty member at a French bistro in San Francisco's Hotel Palomar. UC also bought him a membership at Villa Taverna, a private dining club in the Financial District (at a cost of $1,080 per year).

12

-- Gifts: Top administrators sometimes use their expense accounts to buy presents. In 2003, then-President Richard Atkinson used college funds to give Senior Vice President Bruce Darling a $106 bottle of champagne, a $92 bouquet of flowers and an $85 plant for Darling's wife. -- Travel: Many UC employees travel the world. But UC also routinely covers the cost of joining airline clubs, like United Airlines' United Red Carpet Club, which costs $300 to $500 per year. -- Parties: Expensive parties are common. In fall 2000, the UC president's office spent more than $8,200 on a retirement party for Vice President Wayne Kennedy. UC also spent $1,966 for a retirement party in 2003 for Associate President Pat Hayashi, after spending $2,511 for a dinner to welcome Hayashi four years earlier. UC spent $300 on orchids alone for a meeting in 2003. UC representatives insist the expenses are legitimate and important, and many, such as travel, receptions and entertaining, shouldn't be considered perks at all. "They are business expenses paid for, or reimbursed, by the university,'' said spokesman Paul Schwartz. "They are for official UC business." Schwartz said that UC presidents, chancellors and other senior leaders play vital roles -including diplomat, advocate and fundraiser -- that require travel and entertainment. He also said most administrative expenses are paid from a private university endowment set up decades ago. But some critics wonder whether it makes sense to hand so many perks to senior faculty and administrators who are already receiving six-figure paychecks. "The question is: Is there a pattern here of very well-paid people having inappropriate perks?" asked Patrick Callan, president of the nonprofit National Center for Public Policy and Higher Education. Callan said there might be good explanations for any particular expense, but the overall pattern is troubling. Callan said private donations to UC also should be considered public money, which could be spent for other purposes, such as scholarships, instead of parties or gifts. "This is not a slush fund,'' Callan said. "Every dollar that the university gets is public. It is a public institution. It doesn't matter where it comes from." E-mail the writers at tschevitz@sfchronicle.com or twallack@sfchronicle.com.

13


				
DOCUMENT INFO