Faculty Compensation Policy

Faculty are compensated for their contributions to teaching and advising, research and scholarship, and service to the institution and the state/region/nation/other nations, as well as their professions. Total compensation includes annual base salary plus fringe benefits, including retirement, health and dental coverage, and life and disability insurance. In some instances, annual base salary is augmented through internal sources, such as overload teaching, or from external sources in the case of approved external consulting.

Initial annual base salary is negotiated at the time of hire, with floors established for the instructor and assistant professor ranks only. Increases to annual base salary for faculty occur in the following ways: through annually determined merit increases; through acceptance of a retention offer that includes an increase; in conjunction with a promotion in rank and/or the awarding of indefinite tenure; through an augmentation attached to an administrative title or a set of administrative duties; or in conjunction with an honorary or endowed title. For many faculty, annual base salary is supplemented with summer school or other internal summer employment, such as grant research. Annual base salary may also be supplemented internally during one's contract period through means such as extension teaching. Normally, new salaries go into effect for A base faculty on July 1 and for B base faculty on September 16 of each year.

The salary determination process must provide an objective unbiased evaluation of each faculty member following a thorough review of his/her work. The process must encourage continued good or improved performance, which in turn, should be rewarded by the compensation system.

CRITERIA FOR ANNUAL SALARY INCREASES AND PROMOTION

Any salary determination process at the University of Minnesota must be nondiscriminatory. Initial salary offers, periodic increases, and retention offers may not be based on considerations related to the race, color, creed, religion, national origin, sex, sexual preference, marital status, public assistance status, veteran status, or age of the person being considered.

The criteria for determining salary increases must be similar to those used for promotion and tenure. The tenure and promotion regulations of the University, adopted in 1985, provide the following instructions which form the framework within which salary decisions must be made: (See Board of Regents policy: Faculty Tenure, sections 7.11, 7.12, 9.2, and 5.5, and administrative Procedures for Reviewing Candidates for Tenure and/or Promotion: Tenure-Track and Tenured Faculty)

7.11 GENERAL CRITERIA

The basis for awarding indefinite tenure is the determination that the achievements of an individual have demonstrated the individual's potential to continue to contribute significantly to the mission of the University and to its programs of teaching, research, and service over the course of the faculty member's academic career. The primary criteria for demonstrating this potential are effectiveness in teaching and professional distinction in research; outstanding discipline-related service contributions will also be taken into account where they are an integral part of the mission of the academic unit. The relative importance of the criteria may vary in different academic units, but each of the criteria must be considered in every decision.

7.12 DEPARTMENTAL STATEMENT

Each academic unit must have a document that articulates with reasonable specificity the indices and standards which will be used to evaluate whether candidates meet the criteria of Section 7.11.
FACULTY INVOLVEMENT

Faculty input participation into the discussions surrounding criteria and procedures for salary increase determination is essential to maintaining an equitable and collegial environment. (For the purposes of salary discussion and determination, the relevant academic unit is the departmental or budgetary unit, whichever is smaller.) With the administrator of each unit, the faculty must have the opportunity to develop the criteria for, and the format of, the process through which annual salary increases are determined, including for those faculty who hold endowed chairs. The process determined through consultation may include faculty participation in the judgments regarding compensation changes as a committee of the whole or through a salary committee consisting in whole or in part of elected members. The documents that describe these criteria, formats, and processes shall be shared with the college dean, the appropriate vice president Senior Vice President for Health Sciences, as appropriate, and finally the Senior Vice President for Academic Affairs and Provost. This process must include the provision that the department chair (unit head leader) meet with each faculty member individually, at least once per year, to review his or her performance. The sessions shall review the past year's performance and offer suggestions for enhancing productivity, where appropriate. Units may choose to conduct more in depth evaluations on a periodic basis (e.g. 4 or 5 years) that would include outside evaluations.

Each year the annual salary increase pool for meritorious performance received by the unit will be distributed based on the criteria specified in the University's Regulations Concerning Board of Regents Policy: Faculty Tenure and appropriate departmental faculty evaluation documents.

Unsatisfactory performance, which shall be documented and communicated to the individual involved, shall serve as justification for withholding an individual's increase.

This policy does not apply to any across-the-board component of salary increases.

Promotion from assistant professor to associate professor and from associate professor to professor will be accompanied by an extraordinary recurring $2250 increase in base salary and promotion from associate professor to professor will be accompanied by an extraordinary recurring $3000 increase in base salary. These amounts figures should be interpreted as minima andare in addition to the annual increase given for meritorious performance. The minima amounts will be adjusted annually to reflect inflation using the Higher Education Price Index. It will be the responsibility of the Provost to identify the amounts each year and to communicate those amounts to the deans (or equivalent unit heads). The Provost's office will, after calculating the increases, round the results to the nearest $50 or $100, and no particular ratio between the two promotion increments need be maintained. The deans will set aside funding for promotional increases separate from funding normally set aside for merit and retention purposes. Deans may institute higher minima but are required to use consistent and equitable procedures when granting these increases.

OTHER RECOMMENDATIONS PROVISIONS

1. A standing administrative and faculty compensation committee (including representatives of the Senate Faculty Affairs Committee) will examine and make recommendations on policies such as salary levels in the University as a whole, salary disparity among units, minimum salary levels for associate and full professors, and salary compression.

2. Goals and expectations for endowed chairs and professorships must be established in each unit, in consultation with the dean, and must be used as the basis for review of the performance of individuals who hold endowed chairs and professorships.

3. The Provost will receive an annual report from each college on reviews of endowed chairs and will provide a summary report to the Senate Committee on Faculty Affairs.
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NOTES
*For the purposes of salary discussion and determination, the relevant academic unit is the departmental or budgetary unit, whichever is smaller.
**The process determined through consultation may include faculty participation in the judgements regarding compensation changes as a committee of the whole or through a salary committee consisting in whole or in part of elected members.
***No mention is made of a possible across the board component of compensation increase because it is assumed that no faculty input is required at the unit level for such increases.
[1] The Senate assumes the Provost's office will, after calculating the increases, round the results to the nearest $50 or $100. The Senate does not presume that any particular ratio between the two promotion increments will be maintained.

POLICY FOR STATEMENT ON EVALUATING LECTURESHIPS, FELLOWSHIPS, PROFESSORSHIPS, AND CHAIRS

Senate Committee on Faculty Affairs
(Adapted from an ad hoc subcommittee report, September, 2006)

There are more than 700 Endowed Chairs at the University of Minnesota. The expenditure of dollars to those holding endowed chairs and professorships exceeded $30 million in fiscal year 2003. The number and dollar expenditures are expected to grow due to shrinkage of historical means/levels of support coupled with expansion of charitable campaigns.

Currently, there is no policy that requires faculty oversight or involvement in the development or implementation of review processes for faculty holding these positions. In fact, there is no requirement of a review. The faculty compensation policy does not recognize the existence of this form of compensation and the tenure code makes no mention of these factors. Therefore, it behooves the Faculty Senate to provide clarification to the tenure code and post-tenure review process as well as to develop a policy to require review of those faculty that receive awards, honors, and recognition and the inclusion of faculty from the appropriate academic unit in the review process.

faculty of each academic unit must establish goals and expectations for all faculty members, including goals and expectations regarding teaching, scholarly productivity, and contributions to the service and outreach functions of the unit. The factors to be considered will parallel those used by the unit in the granting of tenure, but will take into account the different stages of professional development of faculty.

The faculty of each academic unit should adopt two policy statements. One is a statement of goals and expectations for all faculty members in that unit (Section 7a.1). The other is a statement of procedures for annual and special reviews (Sections 7a.2, 7a.3). Many Academic Units already have these (or similar) policies in place for compensation review purposes. If so, the faculty need only make any modifications it feels necessary and identify them as the policies applicable to post-tenure review pursuant to Section 7a.

The two policy statements must be adopted by vote of the faculty of the unit. If existing policies are being designated for this purpose, there should be a vote of the faculty designating them as such. The documents must be submitted for review to the dean, who is responsible for ensuring that every Academic Unit has adopted a policy that meets the standards of the University and of the collegiate unit. The dean may approve the policy statements or return them to the faculty with requests for change.

The Subcommittee of SCFA asserts these policies must be applied to those that receive special awards, honors and recognition. This would include lectureships, fellowships, professorships, or chairs (referred to more generally as endowed chairs to distinguish the appointment from administrators) as defined in the Board of Regents policy: Awards, Honors, and Recognition. The special recognition, honor or compensation bestowed upon the faculty must be considered in establishing the goals and expectations for that faculty in a manner analogous to taking into account the different stages of professional development of faculty.

Pursuant to the Tenure code (Section 7a.1), each unit must have a statement addressing the goals and expectations for all faculty including those that receive special recognition, honor, or compensation. Each unit must also have a statement of procedures for annual and special reviews of all faculty, including those specially recognized faculty. In keeping with the RULES AND PROCEDURES FOR ANNUAL AND SPECIAL POST-TENURE REVIEW Approved by the Tenure Subcommittee, the two policy statements must be adopted by vote of the faculty of the unit. The documents must be submitted for review to the dean, who is responsible for ensuring that every academic unit has adopted a policy that meets the standards of the University and of the collegiate unit. The dean may approve the policy statements or return them to the faculty with requests for change.

For the recognition, honor, or compensation that is awarded by an entity other than the academic unit (for example, the college, university, or outside entity), rules and procedures for timely review must be developed by the awarding entity. These procedures must have a component involving the review conducted by the academic unit of the faculty.

Approved by the:	Faculty Senate - February 18, 1993 Administration - April 26, 1993 Board of Regents - no action required
Amendments approved by the:	Faculty Senate - December 1, 2005 Administration - January 31, 2006 Board of Regents - no action required
Amendments approved by the:	Faculty Senate - April 30, 2009 Administration - PENDING Board of Regents - no action required

FACULTY COMPENSATION POLICY