1. Presidential Compensation in the Florida College System AFC Trustee Commission Workshop February 4, 2014

2. Rule 6A-14.026, Florida Administrative Code (F.A.C.) Employment of a President “Boards of trustees shall notify the State Board of Education of the appointment, suspension, or dismissal of presidents immediately upon such action. At the time the contract is issued, the board of trustees shall inform the president of duties and responsibilities, of the procedure by which performance shall be evaluated, and of the criteria for evaluation. The board shall evaluate the president annually. After completion of the evaluation and acceptance by the board of trustees, the notice of findings shall be submitted to the Chancellor of the Division of Community Colleges for review.”

3. Chief Inspector General Report May 13, 2013 The Chief Inspector General (CIG) concluded: There are no standard parameters for boards to use to determine total compensation or the factors upon which the compensation is based. Forms of compensation varied across the Florida College System. The division should provide guidance to local boards as recommended in the report.

4. Special Task Force on Presidential Compensation Members Brian Babb, Daytona State College Sandra Balfour, College of Central Florida Richard Becker, Palm Beach State College Werner Bols, Indian River State College Melanie Brown, St. Johns River State College Jim Burt, Hillsborough Community College Tami Cullens, South Florida State College Gina Doeble, Edison State College Ginger Gibson, Santa Fe College Robert Hudson, Santa Fe College Jason Iroff, Broward College Mae Kline, Seminole State College of Florida Eugene Lamb, Tallahassee Community College E.H. Levering, Miami Dade College Wendy Link, Palm Beach State College Glenn Little, South Florida State College Mark Lupe, Edison State College Isalene Montgomery, Daytona State College Bill Mullowney, Valencia College Steve Schroeder, Pasco-Hernando State College Chris Vernon, Edison State College Sheryl Vittitoe, Indian River State College

5. Special Task Force on Presidential Compensation Reviewed recommendations from the CIG report. Discussed issues of transparency, local control, statutory compliance and best practices. Identified parameters for compensation and possible standard contractual provisions. Examined principles for compensation. Determined factors as vital for inclusion or as a best practice.

6. Recommendation #1 Boards of trustees, in consultation with the division, jointly establish the parameters upon which the presidents’ total compensation is based and standardize this methodology across state colleges. CIG Report Recommendations

7. Recommendation #2 Boards of trustees should ensure that the employment contracts stipulate the form and value of each form of compensation received by a president to ensure that both the short-term and long-term liabilities of the colleges are properly recorded and are fully transparent.

8. CIG Report Recommendations Recommendation #3 The division establish guidance for the state colleges to ensure that each form of compensation and the total value of the president’s compensation are consistently and accurately reported on the division survey, and communicate the reporting expectations to the state colleges.

9. CIG Report Recommendations Recommendation #4 Boards of trustees, in consultation with the division, jointly establish parameters upon which the presidents’ leave benefits are determined, document the factors in which this is based and standardize this methodology across state colleges.

10. CIG Report Recommendations Recommendation #5 Boards of trustees ensure that future employment agreements contain provisions for severance pay requirements consistent with section (s.) 215.425(4), Florida Statutes (F.S.).

11. CIG Report Recommendations Recommendation #6 Boards of trustees, in consultation with the division, jointly establish the parameters upon which the presidents’ severance benefits are determined, document the factors upon which this is based and standardize this methodology across state colleges.

12. CIG Report Recommendations Recommendation #7 Boards of trustees adopt a practice to ensure that the contracts with the state college presidents are reviewed periodically and affirmatively approved at specific and reasonable intervals to ensure compliance with any recent law changes.

13. CIG Report Recommendations Recommendation #8 Boards of trustees tie the presidents’ continued employment and compensation to specific performance goals and expectations that are outlined in the employment contract and the annual performance evaluation, and provide copies of any amended contracts to the division.

14. CIG Report Recommendations Recommendation #9 The division ascertain whether any of these recommendations should be codified in statutes, and, if so, seek legislative action in consultation with the Florida Department of Education and the Executive Office of the Governor.

15. Division Recommendations Florida law clearly delineates an existing process for evaluating a college president. The division is not, at this time, proposing to recommend changes to the rules of the State Board of Education pertaining to compensation or evaluation for Florida College System presidents. However, additional items not included in law should be reviewed and evaluated by boards on an annual basis.

16. Parameters for Compensation Experience of the president Length of service Size of the institution Complexity of the mission of the institution Attaining goals established by board, including measures related to student success A review of the most recent evaluation of the president Fulfillment of all contractual obligations Involvement in the community served by the college Others to be determined by local board of trustees

17. Basis for Presidential Compensation Clearly articulate rationale for compensation in board policy. Stipulate the form and value of each form of compensation to ensure full transparency of short-term and long-term liabilities. Publically disclose funding sources for each form of compensation. Clearly delineate reasonable definition of total compensation for the benefit of the public. Review contracts annually to ensure compliance with recent changes to law.

18. Contractual Provisions Terms and conditions of the agreement Duties of the president Code of ethics Standard compensation benefits, including economic and non-economic benefits Leave benefits Termination and severance clauses

19. Terms and Conditions Should be present in contract and include initial term of service followed by all subsequent extensions. Clearly delineate negotiating policy and procedure for contract amendments, extensions and renewal. Include maximum length for extended or additional term.

20. Duties of the President The board assigns duties to the president that are intended to advance the interests of the institution. The SBOE and FDOE provide rules and regulations addressing presidential duties. Boards provide directives and expectations related to college operations, maintenance and improvement, including those unique to institution and to location of college. Working conditions of the president. The board maintains the discretion to identify the public role of the president.

21. College Code of Ethics The principles, values, rights and standards of conduct should be referenced in the contract agreement. Including (at a minimum) Full and public disclosure of financial interest Solicitation Gifts received

22. Basic Compensation Benefits Base salary Defined contribution or defined benefit plan Reimbursable expenses related for business and travel Health insurance-related benefits Other standard insurance-related benefits

23. Leave Benefits Leave benefits should be clearly delineated in the presidential contract. All associated parameters should be consistent and applicable to Florida law. If the benefits are different than those stated in college policy, the variance should be clearly defined in the contract.

24. Leave Benefits Provisions Annual leave Sick leave (s. 1012.865, F.S.)s. 1012.865, F.S. Sick leave pool Disability Extended leave (such as a sabbatical) Carry-over and payout provisions

25. Severance Severance benefits for state employees are regulated by law under the provisions found in s. 215.425(4), F.S.s. 215.425(4) The parameters upon which severance benefits are determined should be clearly delineated in the contract agreement if they vary from benefits defined in college policy.

26. Termination Identify circumstances for termination. Outline policies and procedures in contract. Specify compensation for all authorized types of termination. Establish policy for disposition of all college property issued to president. Consider applicable arbitration/mediation clause that may used to settle disputes. Review policy at contract inception, during renegotiation or in response to change in a law affecting existing contract. Review provisions annually as a proactive measure.

27. Terms and Conditions for Termination Retirement Death Disability Mutual Agreement Without cause For Cause

28. Parameters for Performance Review The president complies with the terms of the contract, including provisions relating to the college’s code of ethics. The college’s demonstrated success in meeting the strategic goals established by the board. The president’s success in meeting the specific goals and duties identified by the board.

29. Parameters for Performance Review Achievement by the college in meeting student success goals established by the board. Compliance with sections 1008.45 (Accountability) and 1012.86 (Equity) codified in the Florida Statutes and Rule 6A- 14.026, F.A.C.sections 1008.45 1012.86Rule 6A- 14.026

30. Reporting Expectations Provide a copy of contract or supplement to existing contract within 30 days of the agreement. Evaluate the president on an annual basis and clearly delineate all criteria and process used for the performance review in the contract. Submit the entire evaluation, including but not limited to the items previously described, to the division within 30 days of the date of the annual evaluation. Ensure each form and total value of compensation are consistently and accurately recorded on the division survey.

31. Reporting Expectations Failure by local boards to comply with these requests may lead the State Board of Education to consider changes to the existing presidential evaluation rules. The Division of Florida Colleges will facilitate the creation of a repository where all presidential contracts are made available to trustees and the public.