Funding Executive Officer Compensation upon Return to Faculty

Funding Executive Officer Compensation upon Return to Faculty

Policy Type: Administrative Policy
Date Adopted: February 18, 2018
Version: 2.0
Review Cycle: Every 4 years
Date Last Reviewed: August 27, 2020
Office Responsible: Business and Finance
Reviewing Committee: Cabinet

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Policy Summary

This policy establishes how the compensation for the University of Michigan-Flint Chancellor and Provost will be funded upon their return to the faculty. This policy is intended to reduce the financial burden to the School or College and assist in a smooth transition of these Executive Officers back into the faculty ranks.

Scope

This policy covers the University of Michigan-Flint Chancellor and Provost in the event they have retreat rights to return to a tenure track faculty post upon completion of their administrative term.

Policy Statement

Compensation Rate Determination

If the Executive Officer’s administrative contract or hiring documents include the rate of pay to be provided upon return to faculty, the compensation will be charged to the School or College, and the School or College will receive a transfer of funding from the central pool equal to the appropriate amount noted below.

If the administrative contract or hiring documents do not include the rate of pay to be provided upon return to faculty, the Executive Officer will receive compensation equal to the average salary of the full professors in the department in which the Executive Officer attained tenure status. The following hierarchy applies:

1. Average salary of full professors in the department where tenure was attained
2. If no full professors in the department: Average salary of full professors in the School or College where tenure was attained
3. If no full professors in the School or College: Human Resources will determine the average salary based on comparable peer data

Funding Schedule

The compensation will be charged to the School or College, and the School or College will receive a transfer of funding from the central pool equal to the appropriate amount (excluding overloads or additional pay) as noted below. Year 1 starts the day the Executive Officer steps down from their administrative position and may include any contractually entitled administrative leave, sabbatical, or similar time away from campus.

Year	Central Pool	School/College	Notes
Year 1	100%	0%	Full coverage by central pool
Year 2	50%	50%	If School/College portion exceeds average salary, central pool covers the difference
Year 3+	Difference above average	Up to average salary	School/College covers no more than identified average salary

Year 2 Special Provision

In Year 2 only, if the 50% portion covered by the School or College is greater than the identified average salary, the central pool will increase to cover the difference. The effect will be that the School or College will cover no greater an amount than is equal to the identified average salary.

Year 3 and Beyond

Beginning in Year 3, the central pool will cover the difference between the Executive Officer’s salary and the identified average salary. The effect will be that the School or College will cover no greater an amount than is equal to the identified average salary.

Version History

Date of Change	Version	Description of Change
February 18, 2018	1.0	Adopted
August 27, 2020	2.0	Revision to compensation cost-share

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For questions about executive officer compensation upon return to faculty, please contact the Office of Business and Finance.