Executive Compensation and Separation
About This Policy
Responsible Officer
President
Policy Owner
Vice President of Human Resources & Operations
Policy Contact
Vice President of Human Resources & Operations
Issued
2019-11-07
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 the 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 Chairman of the Board of Regents and will be voted on by the Executive Committee of the Board of Regents with review by university legal 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 Chairman of the Board of Regents and will be voted on by the Executive Committee of the Board of Regents with review by university legal counsel and the Office of Human Resources.
Severance
Severance agreements must be in writing, require a release of claims by the individual, and is subject to review by the Offices 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. 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 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.
Forms
- There are no forms associated with this policy.
Appendices
- There are no appendices 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.
Executive Leaders
Senior leaders of the university. 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 appropriate provost, single semester or sabbatical leaves to senior leaders returning to a faculty position. Approves any severance benefit for leaders separating from the university.
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 legal counsel.
related information
Related Legislation
- Form 990 requirement – Return of Organization Exempt from Income Tax, Section VI, Part B.15.
History
Issued
2019-11-07