Administrators Get Fat Contracts
by Dr. Linda Rouillard, UT-AAUP Executive Board
There are fewer than 2 weeks before the referendum on SB5, now known as Issue 2. The stakes are high: we could lose collective bargaining for public employees in the state of Ohio, including union workers on this campus. We could lose the power to negotiate our working conditions, but our highly-paid administrators are in no danger of losing their power to negotiate their sacred contracts.
The people who do the heavy lifting on this campus and across Ohio stand to lose their right to insist on a safe, productive, fair work environment, but those individuals who already have the most lucrative contracts only risk getting more obscene salaries, perks and benefits. We calculate that Dr. Jacobs will make $2,410,611.80 in five years. Dr. Gold will make at least $3,842,835 in five years.
Nearly a year ago, Dr. Lloyd Jacobs wrote a column for the Toledo Blade: "Why I meet with UT tenure candidates" (11/13/10, http://www.toledoblade.com/Op-Ed-Columns/2010/11/14/Why-I-meet-with-UT-tenure-candidates.html). In that op-ed piece, he stated: "I estimate the value of tenure for a 40-year-old faculty member to be in the range of $2.5 million, with a potential impact on the institution for two or three decades." If that is true, then it means a faculty member would earn about $125,000 per year for 20 years or about $84,000 annually for 30 years, presumably including benefits. I thought it would be interesting to calculate the "net present value commitment" for some other contracts on this campus, particularly in view of Dr. Jacobs' testimony of support for SB5 earlier this year. In this letter to the Honorable Kevin Bacon, President Jacobs claimed that the bill would allow "as much as $10 million in potential savings" related to a purported increase in flexibility in determining faculty workload; other "ineffective worker[s]" are costing UT about "$8 million in labor costs" that could be saved if only SB5 could go into effect (UT-AAUP Bulletin #35).
So here are a few facts gleaned from recent administrator contract negotiations: our university president's latest contract, which runs from 2011 thru 2016, awards Dr. Jacobs a yearly salary of $385,000 plus $150,000 of deferred compensation on July 30, 2011; $150,000 again on July 30 of 2013 and $150,000 yet again in 2016. In addition, the University pays for memberships to the Toledo Club and the Toledo Country Club which totals at least $7,122.36 per year. That comes to $2,410,611.80 over the term of his 5-year contract not counting pension and health contributions. His adult sons get tuition waivers for medical school and graduate school something not given to most employees at UT. The University also pays for the lease on a Buick Lucerne for Dr. Jacobs, to be replaced every other year. All this and free housing, too.
Dr. Gold is awarded a yearly salary of $462,467 from 2011 thru 2016. (Since his position is now Executive Dean of the College of Medicine and Life Sciences, in addition to Chancellor and Executive Vice President of Biosciences and Health Affairs, we will soon have to hire a new "regular" Dean of the COM.) In addition, he receives $166,100 from UTPCF/UTP. But that's not all--his contract states that: "It is the intent of the President that in the event satisfactory performance is reflected in each yearly evaluation, and UT's financial situations so allows, Dr. Gold will receive an annual increase..." In addition, "Should Dr. Gold, in the sole discretion of the president, meet performance expectations, then the President will consider awarding to Dr. Gold additional compensation for achieving the performance incentives established by the President in consultation with Dr. Gold." Then there is deferred compensation: $100,000 in 2013; $100,000 in 2015. But wait, there's more: he's also the Promedica Health System Executive Vice President of Academic Affairs, so he gets another $100,000 per year. That comes to a grand total of $728, 567 per year, not counting deferred compensation or bonuses. Over his 5-year contract, that comes to $3,842,835, including deferred compensation, but not including any bonuses, pensions or health care contributions. Dr. Gold apparently didn't think to insist on getting a car lease paid by the University. Presumably he's too busy to insist on country club memberships.
Dr. Scott Scarborough, on the other hand, is not too busy to require this perk. He negotiated a "country club family membership for purposes of University ambassadorship and community development"which costs UT $2946.36 per year. His 5-year contract awards him a yearly salary of $329,373.61, plus $100,000 on Dec. 31, 2012 and $60,000 on June 30, 2015. "In addition, the University may pay up to 20% of base annual salary to Employee as performance-based incentive compensation on June 30 of each year of this Agreement", which comes to $65,874.72. So over the life of his 5-year contract, he will receive $1,806,868.35 plus up to $329,373.61 in incentives which comes to $2,150,973.46, not including pension or health care contributions.
Dr. Dan Johnson is back and he has not lost his right to bargain. In fact, he bargained for a yearly salary of $200,000 plus a "$10,000 a year car allowance".
Dave Dabney draws an annual salary of $215, 540 and is currently working under a 3-year contract, thru 2014. Each year UT will contribute up to $43,108 to Mr. Dabney's 403(b) plan. That comes to $646,620 plus up to $129,324 or $775,944 for the life of this current 3-year contract.
Finally, consider Dr. John Gaboury's negotiating abilities. As of Jan. 2011, he made quite the bargain for himself: the position of Executive Director for Instructional Research Technology, thru June 2013. His salary increased to $200,695.40. He negotiated a 10% administrative stipend for being Executive Director, bringing his yearly prize to $220,764.90. He also bargained for his "currently scheduled administrative leave at full pay" for June 13, 2011 to July 31, 2011. Should he step down as Executive Director he is guaranteed a semester's administrative leave at "full Executive Director's salary". Furthermore, since he is a tenured faculty member, this administrative leave "shall not prejudice any rights to a sabbatical leave."
At these rates, over the next 5 years these 6 individuals will cost UT $11,851,484.76.
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