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Executive Compensation and Separation
Responsible Office
University President
Policy Owner
Vice President for Strategic Operations & Human Resources
Policy Contact
Vice President for Strategic Operations & Human Resources
Issued
2019-11-07
Last Revised
2026-10-01
On this page: Policy Statement · Reason for Policy · Policy Scope · Procedures · Frequently Asked Questions · Forms · Appendices · Additional Contacts · Definitions · Responsibilities · Related Information · History
Policy Statement
The president will determine the compensation for executive (senior) leadership positions, after taking into consideration:
- All aspects of a total compensation plan (base salary, benefits, and retirement).
- Performance markers and associated incentives.
- Equity among the senior leaders with portfolios of similar scope, complexity, risk, and responsibility.
All salary determinations, including, but not limited to, initial salary offers, periodic increases, and retention offers at the university, must be non-discriminatory.
Agreements
All newly hired senior leaders will have a standard, written employment agreement. The president will offer initial employment agreements for senior leadership after review by university counsel and the Office of Human Resources. The employment agreement will include the appointment term, all compensation elements, and any unique responsibilities or other features of the appointment.
Employment agreements for the position of the president will be offered by the Chair of the Board of Regents, prepared and reviewed by the Executive Committee of the Board of Regents, and voted on by the full Board of Regents, with review by university counsel and the Office of Human Resources.
All annual salary increases for senior leaders will be awarded based on meritorious performance other than the cost of living increases granted to all employees.
Separation from Executive Leadership
Senior leaders who conclude an administrative appointment may receive a severance benefit if separating from the university or senior leadership position.
Separation agreements for the position of the president will be offered by the Chair of the Board of Regents, prepared and reviewed by the Executive Committee of the Board of Regents, and voted on by the full Board of Regents, with review by university counsel and the Office of Human Resources.
Severance
Severance agreements must be in writing, require a release of claims by the individual, and are subject to review by the Office of Human Resources and university counsel.
Return to Faculty
Senior leaders who simultaneously hold faculty appointments at the university may, at the discretion of the provost and president, return to their faculty position following their administrative service.
The president, in consultation with the provost, may grant individuals returning to the faculty a semester leave or sabbatical. The leave, if granted, will be at the faculty salary rate. Terms of the approved leave must be articulated within a written leave agreement.
Individuals granted a semester leave or sabbatical will not be eligible for a severance benefit.
Reason for Policy
To establish standards for the compensation of employees in senior leadership positions at the university.
Policy Scope
Senior leadership of the university, including, but not limited to the president and vice presidents.
Procedures
There are no procedures associated with this policy.
Frequently Asked Questions
Q: Who sets pay for senior leaders?
A: The president sets compensation for senior leaders, considering total compensation, performance and incentives, and equity among leaders with similar responsibilities.
Q: Who sets the president’s pay and contract?
A: The Chair of the Board of Regents offers the president’s employment and separation agreements. The Executive Committee of the Board of Regents prepares and reviews them, and the full Board of Regents votes on them.
Q: Do senior leaders have written contracts?
A: Yes. Every newly hired senior leader receives a standard written employment agreement covering the appointment term, all compensation, and any unique responsibilities. University counsel and the Office of Human Resources review each agreement.
Q: How do senior leaders receive raises?
A: Annual increases depend on meritorious performance, apart from cost-of-living increases that all employees receive.
Q: Do senior leaders receive severance?
A: They may when they leave the university or a senior leadership role. Severance agreements must be in writing and require a release of claims.
Q: Can a senior leader return to teaching?
A: Senior leaders who also hold faculty appointments may return to faculty at the discretion of the provost and president, and may receive a semester leave or sabbatical at the faculty salary rate. Those who take the leave do not receive severance.
Q: Who do I contact with questions?
A: Contact the Office of Human Resources at 612.343.4412 or hr@northcentral.edu.
Forms
There are no forms associated with this policy.
Appendices
There are no appendices associated with this policy.
Additional Contacts
| Subject | Contact | Phone | |
|---|---|---|---|
| Primary Contact | Office of Human Resources | 612.343.4412 | hr@northcentral.edu |
| Office of the President | Office of the President | 612.343.4741 | president@northcentral.edu |
Definitions
Compensation
The base salary and additional payments to employees, such as augmentations, lump-sum payments, and incentives.
Senior Leaders
The executive leaders of the university, including the president and vice presidents.
Separation
Either conclusion of a senior leadership position to return to another or prior position at the university, or departure from the university after concluding a senior leadership position.
Severance
A sum of money paid to an employee upon termination.
Responsibilities
President
- Offers employment agreements for senior leadership positions.
- Grants, in consultation with the provost, single semester or sabbatical leaves to senior leaders returning to a faculty position.
- Approves any severance benefit for leaders separating from the university.
Executive Committee of the Board of Regents
- Prepare and review employment and/or separation agreements related to the president before the full Board of Regents votes.
Board of Regents
- Approve all employment and/or separation agreements related to the president.
Office of Human Resources
- Reviews employment and/or separation agreements for senior leaders in cooperation with university counsel.
Related Information
Related Policies & Procedures
Related Legislation
- IRS Form 990, Return of Organization Exempt from Income Tax, Part VI, Section B, Line 15
History
Amended
2026-10-01 – Clarified Board of Regents approval of the president’s agreements and the leave options for senior leaders returning to faculty. Non-substantive updates (e.g., titles, citations, and copy errors) and added frequently asked questions.
Issued
2019-11-07