Board of Regents approves $3.1 million in incentive pay for UC medical centers, hospitals
By Laura Belyavski
Jan. 21, 2010 10:29 p.m.
The UC Board of Regents approved $3.1 million Thursday in performance-based pay for senior management at University of California medical centers and hospitals for the 2008-2009 period.
The money goes to 38 senior management group members as part of the Clinical Enterprise Management Recognition Plan, which bases a percentage of employees’ income on meeting certain goals.
All employees have a base income and receive this additional share of their salary depending on job performance.
Medical centers and hospitals distributed a total of $33.7 million in performance-based pay to supplement adequate and exceptional performers’ base pay, including both plan members and another 22,000 participants.
Regent Charlene Zettel abstained from the vote. There were no opposing votes.
A panel of incentive-based pay experts presented program information to the board. This payment plan has been in place for 15 years, said UC spokesman Steve Montiel.
Zettel said she had planned to vote against the item because she felt it was morally and ethically wrong in light of the cuts to other aspects of the university.
She said she changed her mind after the presentation, but still could not vote in favor.
“They’re not bonuses. They’re incentive pay to elicit certain behavior,” said UC President Mark Yudof.
He added that a competitive pay plan is necessary to attract and sustain quality personnel.
However, Jelger Kalmijn, California president of University Professional and Technical Employees, said hospital employees in his union are outraged.
A total of 17,000 participants in the award plan are union employees and 1,400 belong to UPTE. However, a smaller amount of their pay package is incentive-based and their base pay is lower than executive pay as well.
“We’re not saying we’re against any incentive awards,” Kalmijn said.
He said UPTE members are angry because the university is proposing two years of no raises on top of pay cuts.
Regent Eddie Island said the regents should consider relinquishing the responsibility to grant hospital and medical center employees incentive-based pay, because the money does not come from the state.
Less than 1 percent, or $53.7 million of $5.6 billion of the UC medical center budget comes from the state.
“They’re legitimate, but they’re difficult for us to approve,” Island said of the incentive-based awards, given the cutbacks the UC has made.
The board also appointed Nathan Brostrom as UC executive vice president for business operations. He had served in the same position on an interim basis since September.
