Executive Guideline No. 33, 11/30/04; Rescinded and replaced by Board action, 6-6-08
The Board of Curators of the University of Missouri, through the President of the University, establishes this executive compensation and performance policy, to be phased in at the discretion of the President, to support effective University governance, system integration, communication, planning, accountability and alignment of University goals and strategic direction.
It is also intended that this policy facilitate recruitment, retention and meaningful performance assessment of executive staff. For purposes of this policy, “Executive Staff” is defined to include Chancellors, Vice Presidents, CEO University Health Care, Chancellors’ Executive Staff, Vice Presidents’ Executive Staff, CEO University Health Care’s Executive Staff, and Deans whose appointments and/or changes in appointments require presidential approval. Other positions may be nominated for inclusion under this policy, based upon scope of responsibility, for presidential consideration and approval.
University of Missouri executive compensation is to be supported by a comprehensive performance management system, which will measure, where applicable, performance against (1) University, (2) Campus, (3) Divisional and (4) Individual goals and objectives. Executive compensation (“the program”), once fully implemented, will include base pay and performance based variable pay. The variable compensation component will assume an “at risk” design, making a portion of competitive or target compensation directly dependent upon achievement of approved performance goals. Adjustments to base pay will be broadly considered, including marketplace influence, but will be merit based. The at-risk component will be based on more specific annual executive planning, following an approved assessment scale.
The executive pay and performance program structure will support the strategic planning, mission and values of the University, as determined annually by the University President, with the full consultation and involvement of the Chancellors, Vice Presidents and CEO University Health Care and others as the President may include. Campus and Divisional planning should also be incorporated in the pay/performance structure and annual evaluation by position. Vertical alignment, and in many cases horizontal alignment, of goals, objectives and investments requiring mutual support are to be achieved as part of the process and program.
For each Executive Staff or other program eligible position, marketplace adequacy will be position and industry specific, but will be determined by relevant national market considerations, and based upon total compensation, including all indirect and variable compensation. Subject to financial constraints, the University should strive for total compensation by position, inclusive of annual performance based at-risk compensation at the “made plan” level of payout, be no lower than the median (midpoint) of the market of the most appropriate peer institutions for each position eligible for the program.
The President of the University has overall responsibility and accountability for implementing this policy and shall report to the Board of Curators each year in advance of the program’s implementation which peer institutions are being used to determine market adequacy for each participating position and what the cumulative costs of the program are estimated to be for that year. Additional accountability resides with officers who have direct reports under this policy. As part of the performance program, the President will include, as a component of the annual Executive Staff Evaluation, an assessment of each officer’s effectiveness in executing this policy.