A bill requiring the UC Board of Regents and California State University Board of Trustees to publicly discuss executive compensation issues was introduced into the state Senate Wednesday, following the defeat of a similar bill last year.
Author of the bill, Sen. Leland Yee, D-San Francisco/San Mateo, said Senate Bill 190 will decrease the level of secrecy and scandal regarding University of California and CSU compensation practices, according to a press release.
Currently all discussion by the UC Regents and CSU Board of Trustees regarding employees and compensation occur in closed session.
Senate Bill 190 ““ and its 2006 counterpart Assembly Bill 775 ““ was introduced after the UC came under fire more than a year ago when the San Francisco Chronicle reported the university had spent millions of dollars on benefit packages not disclosed to the public.
While last year’s bill only suggested open discussion for the UC Board of Regents, Senate Bill 190 would also create open discussion policies for the CSU Board of Trustees.
Yee chose to include the CSU Board of Trustees in the bill after he learned that compensation problems existed within the CSU system, including approval of compensation packages without input from trustees and “behind closed doors,” said Adam Keigwin, a spokesman for Yee’s office.
The UC Regents opposed last year’s bill because open discussions violate the privacy of university employees, since executive compensation discussions include evaluations of the performance and value of individuals, Paul Schwartz, a university spokesman, said in a statement.
“We are obligated to honor employees’ rights to privacy,” he said in the statement.
Additionally, Schwartz said the regents have already adopted new policies to create some open discussion and increase the accountability of the board.
In 2006, the UC implemented reforms requiring any voting by the compensation committee regarding salary issues to occur in open session, replacing previous closed session practices.
The compensation committee was created last year to oversee salary and benefits practices for university employees.
Supporters of the bill said open discussion will allow more people to be informed of UC Regents and CSU Trustee actions and cause both boards to come under public scrutiny.
“If the (UC Regents and CSU Trustees) continue to put forward exuberant packages people will get frustrated and speak out,” said Keigwin, who said open discussion may cause the boards to “think twice” in their future decisions.
The bill also anticipates great support because it addresses student concerns that executives’ compensation continues to rise as student fees continue to increase.
“This bill is supportive of the students and the faculty,” said Keigwin. “(Yee) wants to make sure their dollars are spent wisely and they have a voice,” he said.
The University of California Student Association, which supported last year’s bill, is expected to encourage legislators to support Senate Bill 190, said UCSA President Bill Shiebler.
“When students found out about executive compensation scandals they were shocked and outraged that student fees continued to increase,” he said.
“We want to make sure the priorities of the UC are for students and not for overpaid executive administrators,” Shiebler said.