A state bill aims to cap executive compensation at $500,000 and save $80 million per year through reforms sought by Gov. Jerry Brown. AB 837 is being sponsored by Assemblyman Roger Hernandez (D-West Covina) and supported by the American Federation of State, County and Municipal Employees (AFSCME), one of the largest trade unions representing public employees nationwide.
“Less spending on UC’s bloated executive ranks means more resources will be available for students,” said Hernandez. “This bill is directed towards a very small percentage of UC employees that take up a large portion of the UC budget, student funds and taxpayer dollars.”
Over 300 UC employees earned more than $500,000 and the top five earning employees were coaches, according to 2013 UC data. The UC has not taken a position on the bill, but UC Media Specialist Shelly Meron said 3 percent of UC’s 195,000 employees earn more than $200,000, and among those who do, 81 percent are faculty.
Meron says that 37 percent of the funding for systemwide compensation came from clinical revenue and other sources associated with medical and dental compensation. Only 23 percent came from general funds and tuition, and 4 percent from student fees. The remaining funds came from the federal government, private contracts, grants and gifts.