Salary Increases, Incentives & Bonuses (FY 2017-18)

In addition to general salary increases for FY 2017-28, other salary increases and incentive or bonus payments are permissible during the fiscal year if the intended actions falls under one of the categories below.  The availability if funding, such as budgeted increases in externally funded proposals or use of payroll savings, are not by themselves sufficient justification for authorizing a salary increase or an incentive or bonus payment.  Any of these compensation actions should be accomplished in consultation with the campus or institute human resources and business offices.

Qualifying Compensation Actions in Addition to the General Increase:

1. Promotions in rank.
2. Promotions resulting from the hiring/transfer process in accordance with policy.
3. Job reclassifications resulting from job reviews. Any salary adjustments are in accordance with policy. Job reviews involving potential compensation changes are currently limited to the following events:
   1. Department or sub-department reorganization (requires explanation of reorganization)
   2. Reclassification of position(s) and/or assumption of additional duties (requires explanation)
   3. Cyclical position review according to current protocol
4. To bring employees to salary schedule minimums.
5. Advancement through approved career ladders.
6. Contractual agreements.
7. Compression: Increases based on comparison with others in the same job title and work unit who have comparable qualifications and performance.
8. Market: Non-standard “off-cycle” salary increases to faculty and staff in consideration of the external job market for similar positions.  Must be supported by data on current market salaries for comparable positions.
9. Merit Pay: An increase in total compensation based on documented performance within a defined period with an established method to assess an employee’s performance.  Merit Pay may be an increase to base pay or a non-recurring lump-sum payment.
10. Retention Pay: An exceptional circumstance in which an increase in total compensation is granted to a high-performing employee in a mission-critical position to retain his/her services.  Such retention payments may or may not be associated with an offer of employment from another organization.
11. Incentive Pay: A pre-determined lump-sum payment to an individual or to a defined group to reward the accomplishment of documented results achieved over a defined period of time.
12. Bonuses: A discretionary lump-sum payment to recognize exceptional service at a point in time.
13. Correction of any university error.
14. Minimum rates of pay: Increases needed to implement a system-wide program to adjust to more competitive salary market conditions.
15. Adjustments required by state or federal rule changes.

Approvals:

1. Employees will not be notified of proposed or pending salary increases or incentive or bonus payments until all required approvals are obtained.
2. Salary increases and incentive bonus payments for coaches and athletic directors, regardless of the amount, require approval by the Chief Financial Officer or his designee before implementation.  If the salary increase, incentive payment, or bonus payment is to be made in accordance with the terms of a written employment agreement, the Chief Financial Officer’s approval of the employment agreement satisfies this requirement.
3. Salary increases and incentive or bonus payments for the President must be approved by the Board of Trustees on the recommendation of the Executive and Compensation Committee.
4. Salary increases and incentive or bonus payments for Chancellors, other University Officers (as defined by the Bylaws), and other executive-level members of the President’s staff must be approved by the President; provided that the Vice Chair of the Board will approve any salary increases or incentive payment for the Secretary.
5. Incentive payment plans must be reviewed and recommended by the University’s Compensation Advisory Board and approved by the Chief Financial Officer and the President; provided that this requirement does not apply to a plan adopted by the Board of Trustees for University Officers.
6. Chancellors and Vice Presidents serving as Institute chief administrators, or their designees, are authorized to approve salary increases and incentive or bonus payments in accordance with these guidelines and are accountable for assuring campus/institute/system compliance.
7. Salary increases and incentive or bonus payments outside these guidelines, along with written justification documenting the need for an exceptional approval, must be submitted to the campus or institute chief business officer (CBO). If approved by the CBO, the request is submitted to the CFO for approval.
8. A salary increase having an effective date prior to the date it is processed must be approved by the campus or institute CBO unless it corrects a university error or is part of an approved salary increase plan.  Departments must provide supporting documentation of the need for a retroactive increase in consultation with the campus or institute human resources office.