BERKELEY, Calif. - Union officials and students are fuming over the more than $2 million in bonuses handed out by the cash-strapped University of California to medical school executives.
The $2.4 million in bonuses went to 65 administrators at UC's five medical schools. Payments averaged $36,000 and were as high as $82,000, according to a report made public by an employee union.
UC officials say their incentive awards are in line with industry standards and the incentive pay is tied to performance and comes out of money made by UC hospitals. They say even with the bonuses, UC medical center executives earn less than their counterparts at other medical schools.
But critics say the bonuses are hard to justify considering that UC has raised student fees for four consecutive years in the wake of state funding cuts. They say the money could have gone to student aid or to increase hospital staffing.
"We could have thought of a lot of good places to use that money," said Jennifer Lilla, president of UC's student association.
Lilla, a student at the UC San Francisco medical school, said she understands the need to keep good people at the top, but giving out bonuses at a time of cutbacks and fee hikes sends a disturbing message. "In troubled budget times this really just shows us, the students, what the priorities of our administration will be."
The largest bonus went to UC Davis Medical Center Chief Executive Officer Robert Chason, who received $82,000, 20 percent of his annual salary of $410,000.
In a news release, workers represented by the American Federation of State, County and Municipal Employees Local 3299 called the bonuses "outrageous." The union represents about 7,300 service workers at campuses and medical centers along with about 10,000 patient care workers.
Unions planned to rally in San Francisco next Thursday in protest of the bonuses with the theme that executive bonuses are "breaking our hearts and our wallets."
At UCSF, chief executive Mark Laret received a $79,495 bonus, about 18 percent of his $434,400 salary.
In a statement released Wednesday, Laret said UCSF medical center "strives to compensate its employees at the median of the market."
The bonuses were approved in October by UC President Robert C. Dynes and outlined to the system's governing Board of Regents last month. Regents authorized a bonus plan in 1992 based on a study showing senior managers at UC's medical centers were getting paid significantly less than their peers.
The plan gives bonuses of up to 20 percent of an executive's salary and is based on meeting or exceeding performance objectives in several areas. The objectives vary from campus to campus and include financial performance, quality of service, employee satisfaction, patient satisfaction and strategic planning.
