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The Honolulu Advertiser
Posted on: Saturday, July 25, 2009

University of Hawaii executives' salaries to be reduced up to 10%


    By Loren Moreno
    Advertiser Education Writer

     • 6-year campaign raises $336M
    Hawaii news photo - The Honolulu Advertiser

    UH President David McClain said he and other executives will take pay cuts.

    NORMAN SHAPIRO | The Honolulu Advertiser

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    UH BUDGET NUMBERS

    $155 million

    Amount UH’s budget has been cut by the state over the next two years

    $2 million

    Savings offered by pay cuts of UH executives per year

    210

    Executives who would receive a pay cut between 6 percent and 9 percent

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    While attempts to negotiate pay cuts for university faculty so far have been unsuccessful, University of Hawai'i President David McClain yesterday said he and incoming system president M.R.C. Greenwood will take a 10 percent reduction in salary to help meet about $155 million in budget cuts over the next two years.

    About 210 other executives within UH's 10-campus system — including vice presidents, chancellors, vice chancellors, athletic directors and deans — would take pay cuts ranging from 6 percent to 9 percent based on their most recent performance evaluations, McClain said.

    The proposal must still be approved by the UH Board of Regents and will be heard at its Aug. 27 meeting.

    The announcement came just three days after Gov. Linda Lingle, UH and the state Department of Education submitted counteroffers to several unions, including the University of Hawai'i Professional Assembly. The offer was said to include a 7 percent pay cut and about 18 furlough days a year for two years.

    McClain said his decision to seek executive pay cuts is an attempt to lead by example during difficult economic times.

    McClain is taking a 10 percent reduction in his July salary even though the salary cuts would not officially go into effect until Sept. 1.

    "It fulfills my commitment that our executives will play a leadership role in addressing the fiscal challenges that the university faces," McClain said.

    He would not comment on the progress of collective bargaining. However, he did say he is attempting to address up to half of the governor's $106 million in budget restrictions over the next two years through salary reductions.

    J.N. Musto, executive director of UHPA, yesterday did not respond to multiple requests for comment.

    Last year, UHPA members received an 11 percent pay increase under their contract, which expired June 30. UHPA members have seen their pay increase by a total of 31 percent under that six-year agreement. The union represents about 3,000 UH faculty, professors and instructors.

    "I had hoped that our collective bargaining negotiations would be concluded by what we thought was the contract conclusion date of June 30, and certainly by July 31, when I will conclude my five years of service as your president," McClain said in a written statement to the university. "However, it now looks like these negotiations will continue for several more weeks."

    McClain's executive pay reduction plan is expected to result in about $2 million in budget savings per year.

    Based on cuts made by the state Legislature and additional restrictions from Lingle, the UH system faces trims of about $76 million from its annual $470 million budget next year. UH also expects $79 million in cuts in fiscal year 2011.

    At a salary of $475,008, Greenwood is expected to formally take office as UH's president on Aug. 1.

    McClain will be returning to the faculty at the UH Shidler College of Business, at which time he chose to have his current salary of $414,086 revert to his faculty salary of $250,000. Under UH Board of Regent policy, McClain is entitled to retain his current salary.

    "When I negotiated (that) agreement with the board, I thought that was inappropriate," McClain said.

    He also said he'll take a 10 percent pay cut on his faculty salary.

    "To the extent that the (faculty) salary reductions don't get all the way to 10 percent, I'm committing today to pledge to the University of Hawai'i the difference between what I'd have to take as a faculty member and 10 percent and donate that back to the university," he said.

    UH executives both senior and junior will take pay reductions ranging from 6 percent to 9 percent based on their most recent performance review, according to McClain's plan.

    Senior executives would take a 7 percent reduction if their performance has been rated outstanding, 8 percent reduction if rated superior, and a 9 percent reduction if rated satisfactory. Senior executives include UH system vice presidents, campus chancellors and vice chancellors, UH-Manoa's athletics director and deans.

    All other executives, known as junior executives, would take a 6 percent reduction if their performance has been rated outstanding, 6.5 percent reduction if rated superior, and 7 percent reduction if rated satisfactory.

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