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University of Missouri Board of Curators approves two-year contract extension and pay raise for President Elson S. Floyd
The University of Missouri Board of Curators has approved a two-year extension to the employment contract of President Elson S. Floyd, retaining his services until 2010. The Board also voted last Friday to give President Floyd a raise of $21,000, or 6 percent. This is the first pay increase President Floyd has accepted since he assumed the University presidency in January 2003. His new salary in January 2006 will be $371,000.
The Board also deemed President Floyd’s performance during 2005 to be satisfactory, allowing for the deposit of $50,000 into a deferred compensation plan, per his November 2002 employment agreement. The deferred compensation may only be paid once President Floyd receives satisfactory job evaluations for five consecutive years.
“As I stated publicly at the Board meeting in Kansas City, Dr. Floyd is the best University system president in the United States, and I am pleased that we have secured his services through 2010,” said Tom Atkins, President of the Board of Curators.
The revised contract for President Floyd supersedes the prior contract and any amendments. The votes on the contract extension, pay raise and deferred compensation were each 6-3.
Leading up to Friday’s votes, the Board of Curators was asked by President Floyd to set aside and nullify a February 2005 amendment that, in addition to extending his contract, would have increased his deferred compensation. He has received no additional compensation under that amendment. President Floyd’s request was the result of questions raised by three Curators who joined the Board subsequent to the February 2005 amendment.
The February 2005 amendment arose from a November 2004 meeting of the Board, at which it voted 9-0 to increase President Floyd’s salary by 3 percent and deemed his 2004 performance satisfactory.
During the November 2004 meeting, the Board delegated authority to its incoming President, Tom Atkins, and the University General Counsel to discuss with President Floyd extending the President’s employment contract by two years and boosting his deferred compensation. The Board also instructed the General Counsel that advice should be sought from outside tax counsel about the tax ramifications of such moves. President Floyd did not ask for nor solicit these contract changes; they were proposed exclusively and unanimously by the Board.
After consulting with outside tax counsel, General Counsel prepared an amendment to President Floyd’s contract. Board President Atkins, as authorized and unanimously requested by the Board, offered the agreement to President Floyd on February 2, 2005. This amendment was subsequently signed by President Floyd.
During the December 2005 Board meeting in Kansas City, three Curators who joined the Board in February 2005 questioned the validity of the amendment. These concerns were communicated to President Floyd by President Atkins. President Floyd then requested that the agreement be declared null and void. Friday’s vote laid out the revised employment terms for President Floyd.