Earning My Degree: Memoirs of an American University President

APPENDIX 2. Text of the Regents’ Action on the Separation of David P. Gardner as President of the University of California, in Special Session, April 20, 1992

APPENDIX 2 TEXT OF THE REGENTS’ ACTION ON THE SEPARATION OF DAVID P. GARDNER AS PRESIDENT OF THE UNIVERSITY OF CALIFORNIA, IN SPECIAL SESSION, APRIL 20, 1992 1. READING OF NOTICE OF MEETING For the record, it was confirmed that notice was given in compliance with the Bylaws and Standing Orders for a Special Meeting of the Regents, for this date and time, for the purpose of reviewing the actions taken March 20, 1992 with respect to separation of David P. Gardner as president of the university, and consideration of affirmance, modification, or rescission of such actions. 2. REVIEW OF ACTIONS TAKEN MARCH 20, 1992 WITH RESPECT TO SEPARATION OF DAVID P. GARDNER AS PRESIDENT OF THE UNIVERSITY AND CONSIDERATION OF AFFIRMANCE, MODIFICATION, OR RESCISSION. The President recommended that the regents review the actions taken on March 20, 1992 with respect to Separation of David P. Gardner as President of the University, and that, following that review, the regents consider what action the Board wishes to take in affirming, modifying, or rescinding those actions. It was recalled that at its March 20, 1992 meeting, the Regents took the following actions with respect to separation of David P. Gardner as President of the University: – Granted to President Gardner a three-month paid leave of absence, from October 1 through December 31, 1992, at his current base salary and regular benefits. 381 It is the practice at the University of California, as permitted in Standing Order 100.4(e), for the President to grant leaves of absence to certain senior executives at such time as they step down from their administrative appointments. This is often done in substitution for a sabbatical leave that such administrators would have earned by virtue of their professorial appointments. Granting of a paid leave to the President requires approval of the Board of Regents. Payment of this leave will be made from nonstate funds. – Approved a vesting date of December 31, 1992 for existing Nonquali fied Deferred Income Plan (NDIP) agreements and Special Supplemental Retirement Program agreements for President Gardner. Nonqualified Deferred Income Plan—In 1987, the Regents established a Nonqualified Deferred Income Plan for senior executives. An NDIP is a contractual arrangement between the Regents and a designated recipient, under which the regents agree to compensate the recipient in the future for services rendered currently, subject to forfeiture if the recipient does not remain in an eligible position until an agreed-upon future date. Allocations to this plan are credited annually and accrue earnings quarterly at the University-managed Short-Term Investment Pool rate. All deferred amounts are provided from nonstate funds. Establishment of the Nonqualified Deferred Income Plan was in part to provide additional compensation as a means of responding to marketrelated deficiencies in officers’ salaries, as described by the Towers, Perrin , Forster and Crosby study of 1987. The objective was to achieve about 20 percent of base pay in deferred income benefits. Another factor in its establishment was the need to find a replacement for certain previously approved employer contributions to the Tax Deferred (403 (b)) Plan, which contributions had to be discontinued because of the effect of the 1986 Tax Reform Act. Under this policy, several NDIP agreements were subsequently approved for President Gardner. NDIP agreements require service for a period of five years, or to retirement if sooner. Had the President anticipated an earlier separation, that earlier date would have become the vesting date in the agreements, rather than the five-year date. The March Regents’ Action provided that for purposes of these previously-approved NDIPs, the term of service in each agreement would be modified and each agreement would then vest on December 31, 1992, thereby waiving the forfeiture provisions of the agreements. As a consequence of the leave of absence and the modification to the vesting date, NDIPs will terminate and be paid out in the amounts reflected on the Attachment, NDIP Projections. Each NDIP listed was established by specific action by the Board. APPENDIX 2 382 Special Supplemental Retirement Program—In 1985, the regents established a University of California Special Supplemental Retirement Program (SSR I) “for the purpose of providing a supplemental benefit to selected individuals who, by virtue of their individual circumstances, find themselves at a significant financial disadvantage either as a result of accepting appointment to a University...