Extra Compensation and Extraordinary Pay

Policy number: 2.8

Policy section: Academic Affairs

Revised Date: November 25, 2024

1.  Definitions

Definitions of capitalized terms are set forth in Appendix A.

2.  Policy Statement

It is the policy of the University that faculty and academic administrators who hold Full-Time Appointments at the University have Full-Time Commitment to the University. These persons can receive extra compensation from the University only as indicated below.

3.  Purpose

The purpose of this policy is to outline extra compensation that is allowed or not allowed under this policy and that requires the approval of the Provost.

4.  Extra Compensation Parameters

Extra compensation refers to any payment in addition to a faculty member’s Full-Time Base Salary for a 9-month scope of work.  Faculty on regular (9-month) Full-Time Appointments are eligible to receive a maximum in extra compensation of 50% of their Base Salary each year as extra compensation, and Faculty on Full-Time Appointments of 12 months are eligible to receive a maximum of 17% of their Base Salary each year as extra compensation. This extra compensation can come from any, or any combination, of the following: externally funded research (if allowable under the terms of the grant/contract), internally funded research, teaching (e.g., overload, Intersessions, executive education, online teaching, etc.), or expanded service that carries compensation (see 2.8.5 below). The twelve-month eligibility window for faculty on 9-month contracts consists of the fall-spring academic term followed by the subsequent summer. Full-time faculty on research or other types of leaves are not eligible for extra compensation for teaching of any kind during their leave. Exemptions under extraordinary circumstances may be made only through prior, written Provost approval.

5.  Expanded Service Responsibilities

All extra compensation for expanded service responsibilities is considered part of the calendar-year calculation.

Tenured and tenure-track faculty are not eligible to receive extra compensation for service duties, unless well in excess of contractual expectations (see Policy 2.11 Faculty Workload and Compensation). For example, ordinary student support activities such as routine supervising of graduate students by graduate school faculty, supervising independent studies, proctoring exams, and/or serving on departmental, school, and university committees or editorial review boards are considered normal service activities and are typically not eligible for extra compensation. All extra compensation for such service requires the approval of the faculty member’s home department/unit, dean, and Provost.

Professional and Teaching faculty members who are asked to do significant service beyond baseline service are eligible to receive extra compensation for service duties when service is beyond responsibilities as specified either in their contract or in the workload guidelines for their unit. Professional and Teaching faculty members who are asked to perform expanded service duties beyond the scope of course reductions provided as specified in the University Workload Guidelines should optimally have released time from the twelve-credit hour teaching load per semester to perform that service instead of receiving extra compensation.

6.  Extraordinary Compensation

Extraordinary compensation is compensation that exceeds the Base Salary in a calendar year, as defined by the combined contractual Full-Time Base Salary plus up to 50% of Base Salary for faculty on 9-month contracts (and up to 17% of Base Salary for faculty on 12-month contracts in a given year), whether for service, research, or teaching. All extraordinary compensation requires additional review and pre-approval by the relevant dean and Provost. Some examples prompting extraordinary compensation that exceed these thresholds are one-time payments that are often contractual and subject to dean and Provost pre-approval in writing (e.g., administrative stipends, relocation expenses, start-up packages, retention offers, etc.).

Extraordinary compensation that exceeds these maximum thresholds requires prior written approval by the Provost. At the end of each academic year, deans must report to the Provost on all Extraordinary Compensation that exceeded the maximum threshold.

7.  Other Considerations

Regarding administrative stipends/reduced teaching and course overloads, generally, a Full-Time Faculty member who teaches a load that is further reduced from the standard in-load as specified in the unit’s workload policies in order to take on additional research or service responsibilities is not eligible to teach an overload during the fall or spring term for extra compensation unless the Full-Time faculty member is fully meeting all teaching/service/scholarship responsibilities. Although faculty might occasionally be needed to teach an additional course in extenuating circumstances, deans will be expected to provide a rationale --and obtain prior approval—for the faculty member’s involvement in such teaching and include this in the report to the Provost.

Regarding summer expectations and extra compensation, to ensure continuity across the year, full-time, tenure-line faculty are expected to use the summer to further their scholarship through pursuing active research and creative agendas (e.g., researching, writing, publishing, attending conferences, conducting exhibitions/performances); to support basic governance functions of the university (e.g., student mentorship, critical committee work such as Ethics & Tenure and the Executive Committee of Faculty Senate, approvals of credentials for adjunct teaching faculty and approvals of curricular changes), and to follow other activities as determined by their School/College peer guidelines, which are submitted to the Provost Office and can be revised annually. Full-time Professional and Teaching faculty who are on 9-month contracts are typically compensated for summer contributions with a written contract.

8.  One-Time Merit Performance Bonuses or Other One-Time Payments

One-time merit performance bonuses can be granted as part of the normal merit annual review process. Granting a bonus outside of the annual merit performance review process requires advance consultation and written approval by the Provost’s Office and can include awards for research, teaching and service.

9.  Questions

Appendix A: Definitions

“Base Salary” refers to the salary paid to faculty on a Full-Time Appointment on 9 through 12-month contracts, with the individual contract explicitly stating any contract length that differs from the standard full-time appointment for a 9-month scope of work. Base salary does not include benefits, bonuses, or extra compensation.

“Full-Time Appointment” refers to the full-time workload as described in Policy 2.7 Faculty Workload and Compensation. It generally refers to a 9-month scope of work that follows the academic year (mid-August to mid-May). In some cases, due to the higher education landscape, the 9-month scope of work can be performed with flexibility across 10-12 months, with some responsibilities shifting into summer months.

“Full-Time Commitment” refers to the agreement laid out in Policy 1.3.2 Conflict of Commitment.

“Full-Time Base Salary” refers to faculty salaries that are calculated on a standard academic year scope of work (typically 9 months). External reporting converts all faculty salaries to a 9-month equivalent as the Base Salary. For faculty on longer contracts with higher salaries associated with an extended scope of work (e.g., 10-, 11-, 12-month) such as faculty administrators or research professors, Base Salary refers to the 9-month calculated equivalent.

Revised: November 25, 2024

Adopted: June 1, 1994