Committee Approves Bill to Require Public Meetings

Yee’s bill would require public discussions on executive compensation by UC Regents

SACRAMENTO – A bill requiring public meetings for all discussions regarding executive compensation at the University of California (UC) was approved on a bipartisan 6-1 vote today in the State Senate Committee on Education.

Yee introduced AB 775 following audits, a lawsuit and other revelations determined that the UC failed to obtain public approval from the Board of Regents for compensation packages and that some top UC executives were compensated over and above what had been revealed to the public.

“For too long the UC has been acting in secrecy when it comes to determining high-level salaries,” said Yee. “This legislation will finally bring sunshine to these discussions, give members of the media the access they deserve and restore the public’s trust. This bill simply makes the UC live up to its own motto, Fiat lux, Latin for Let There Be Light.”

“UC's top management has been acting as if the university is a privately held company and it can spend money as it sees fit and make compensation decisions behind closed doors, with occasional rubber-stamp approval from the Regents,” said Karl Olson, a lawyer for the San Francisco Chronicle. “But UC is a public trust, and its actions have to be taken openly.”

AB 775 would clarify that both Regents' committees and the full Board of Regents must meet openly when considering and acting upon top executives' compensation. Specifically, requiring discussion and actions on executive compensation proposals involving the President/chancellor, Chancellors/campus presidents, Vice Presidents of Agriculture, Administration, Academic Affairs, Budget, Health, Business Affairs, and Human Resources; Treasurer; Assistant Treasurer; General Counsel; and Regents' Secretary to occur in open session of the appropriate committee of the Regents of the University of California, with final action occurring in open session of the full Board of Regents.

Unlike every other public entity, UC has been holding several closed committee meetings to discuss and act upon top executives' compensation.

In November 2005, it was reported that the university paid some top employees more than what was reported to the public. Over the past few months, audits also found that the university failed to even get approval from the Regents for a number of compensation packages. In fact, UC auditors found that 143 exceptions to UC’s compensation policies were made to provide extra pay or benefits to 113 senior managers. In addition, Pricewaterhouse Coopers auditors found 91 additional exceptions for a different group of UC executives.

Tomorrow, the San Francisco Chronicle newspaper will also go to court in an attempt to gain access to the UC Regents’ meetings regarding executive compensation.

“Assemblyman Yee's bill is not about whether top UC employees are over or under compensated,” said Tom Newton, General Counsel of the California Newspaper Publishers Association (CNPA), which is sponsoring the bill. “It's about restoring the confidence of the taxpayers, the public and the Legislature by making sure UC pay policies can survive and even flourish in full sunshine.”

“Unfortunately, an extraordinary number of compensation packages have been approved in secret and in complete violation of UC policy, without any input from taxpayers or students,” said Yee. “It is imperative that we enact this open government law immediately.”

In addition to support from CNPA, AB 775 is endorsed by the Council of UC Faculty Associations, UC Student Association, AFSCME, California Labor Federation, California Nurses Association, and others. The only opposition filed is from the UC itself.

AB 775 will now be considered by the Senate Appropriations Committee before a full vote of the Senate.

Adam J. Keigwin
Office of Speaker pro Tem Leland Y. Yee, Ph.D.
California State Assembly, District 12
State Capitol, Room 3173
Sacramento, CA
(916) 319-2012
(916) 319-2112 – fax
www.assembly.ca.gov/yee