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Human Resources Policies
UMB PROCEDURES TO IMPLEMENT USM POLICY ON BOARD OF REGENTS REVIEW OF CONTRACTS FOR HIGHLY-COMPENSATED PERSONNEL
Human Resources | Approved December 1, 2009
- USM Policy VII-10.0 ("Policy") requires that certain contracts for highly-compensated personnel be submitted to the Office of the Attorney General for review before execution and submitted to the Chancellor after execution. UMB will follow these procedures to ensure that the Policy is followed.
- The term "contracts" means appointment letters, employment contracts, contract amendments, and separation and retirement agreements. (It does not include standard sabbatical leave and terminal leave agreements prepared by the Office of the Vice President for Academic Affairs.) Oral agreements may not be used to avoid the Policy's contract review requirements.
- A contract with any of the following personnel must be evaluated by University Counsel to determine whether the contract is subject to the Policy: UMB officers, deans, and academic administrators who are directors of programs not administratively located within a School.
- A contract with any other senior administrator must be evaluated by University Counsel if the contract contains a provision relevant to the categories listed in paragraph 4 of these Procedures.
- A contract which falls into one or more of the following categories is subject to the Policy:
- The contract is for a term of more than one year, and includes a provision concerning severance compensation or leave.
- The contract provides for a deferred compensation benefit in excess of the standard and optional retirement benefits offered routinely to UMB personnel.
- The contract provides for a total compensation package that exceeds the annual total compensation package of the UMB President. Total compensation package includes: a) salary; b) other allowances, performance and other contingent bonuses, revenues, or other benefits that must be declared as taxable income according to Internal Revenue Service rules and regulations; and c) deferred compensation contributions in excess of the standard and optional retirement benefits offered routinely to UMB personnel.
- When a contract that may be subject to the Policy is under negotiation, the President will advise the appointing authority of the total compensation package threshold that will determine whether the Policy applies to the contract. Appointing authorities are responsible for consulting with the President to obtain the required information.
- For any contract subject to evaluation by University Counsel, the appointing authority must either submit a draft contract, or a request to prepare a contract, to University Counsel. University Counsel will determine whether the contract must be sent to the Office of the Attorney General for review for form and legal sufficiency, and will work with the appointing authority at UMB to address any concerns identified through the review of University Counsel and/or review by the Office of the Attorney General.
- Following execution of the contract, the President or his designee will submit the contract to the Chancellor as required by the Policy. The Chancellor will submit the contract to the Board of Regents in accordance with the Policy.
- If Human Resource Services is made aware of a contract/appointment that may be subject to this Policy, the Associate Vice President for Human Resource Services shall notify the President and University Counsel so that the Office of the President may verify compliance with this Policy.
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