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Sunday, July 17, 2016

Regents' new rules for senior management

The Sacramento Bee notes the Regents this week will be dealing with rules changes regarding outside work of top UC executives due to the ongoing affair surrounding suspended Davis Chancellor Linda Katehi.
University of California regents this week will consider new restrictions on when top administrators can accept outside work after months of controversy about lucrative board positions UC Davis Chancellor Linda P.B. Katehi had with a textbook publisher and for-profit university.
The recommendations by UC President Janet Napolitano would reduce the maximum number of outside paid jobs from three to two, add a second layer of approval and require consideration of whether an outside board seat poses a “reputational risk” to the university...
Ed Howard, senior counsel for the Center for Public Interest Law, said the new policy doesn’t go far enough. He said it should offer specific guidance on avoiding conflicts of interest and preclude senior managers from taking board seats with companies that do business with the University of California...
Nine University of California chancellors received nearly $1.5 million in cash compensation, in addition to deferred compensation and other stock options for outside work for corporations and nonprofits from 2012 to 2014, according to data provided by UC.
In 2014, the most recent year data are available, top university officials earned at least $2.58 million in jobs as consultants, advisers, speakers and corporate board directors. The exact compensation is hard to determine because the report, which lists income from cash and stocks, doesn’t always include the value of the stock.
The biggest earner appears to be Mark Laret, chief executive officer of UC San Francisco Medical Center, who earned $589,820 serving on the boards of medical firms Nuance and Varian, according to UC records. In 2014 Laret earned $1.59 million in salary and other compensation from UC.
Eight senior managers with outside jobs, including Katehi, held three or more outside paid positions in 2014. That would exceed the proposed policy’s maximum of two, though UC will only apply the limit when current administrators seek new positions rather than ask them to step down from existing ones.
Katehi sat on the Wiley board, National Science Foundation Division of Electrical Communications and Cyber Systems, as well as on the board of a company in which she has ownership, EMAG Technologies. Katehi did not list income for EMAG Technologies but said she spent 80 hours on company work that year.
UC San Diego Chancellor Pradeep K. Khosla had seven outside jobs in 2014 that included being member of two corporate boards, advising three companies, chairing the Infosys Foundation Jury of Engineering and Computer Science and being the the co-founder of Biometricore. He lists $24,000 in income and stock valued at about $106,000. He says he spends 45 hours a year on these outside jobs.
Acting UC Davis Chancellor Ralph Hexter, who served as the school’s provost before Katehi’s leave, falls within the limit, having received $1,500 in 2014 for serving as a review board member, according to UC records.
Katehi earns $424,360 a year as chancellor of UC Davis. Napolitano ordered a review of the board seats of all senior managers and chancellors to ensure each had accurately reported the compensation they received. The report has since been completed but was not available Friday, Klein said.

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