VII-10.0 - Policy on Board of Regents Review of Certain Contracts and Employment Agreements
(Approved by the Board of Regents 12/9/05, amended February 10, 2006 and April 11, 2014.)
PURPOSE AND AUTHORITY
Under §12-109(e) of the Education Article, Annotated Code of Maryland, the president
of each institution has the authority and responsibility to "appoint, promote, fix
salaries, . . .assign duties and terminate personnel." This authority is "subject
to the authority and applicable regulations and policies of the Board of Regents".
§12-109(e). The Chancellor has similar authority to appoint staff of the
University System of Maryland (USM). §12-108(c).
It is the expectation of the Board of Regents that the Chancellor and the Presidents
will establish compensation that is competitive to attract the best qualified applicants
to the USM and its institutions, but is not excessive in comparison to the compensation
for similar positions at peer institutions.
As part of its responsibility for the management of the USM, the Board of Regents adopts
the following policy to ensure the systematic review of all contracts for highly-compensated
personnel entered into by the USM and its institutions.
This policy shall apply to all contracts, including appointment letters and contract amendments,
for institution officers, academic administrators at the level of dean or director or above,
other administrators and athletic personnel that contain any of the following provisions:
1. A term of more than one year, with a provision providing severance compensation or leave in
excess of standard severance compensation or earned leave pursuant to USM policies;
2. An annual total compensation package that exceeds the annual total compensation package of
the institution's president or the Chancellor (Total compensation shall include: 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 USM and institution personnel.); or
3. A deferred compensation benefit in excess of the standard and optional retirement benefits
offered routinely to USM and institution personnel.
Revisions in the terms of employment due solely to cost of living adjustments (COLA) or merit
increases within the range of other institution employees, or other changes in the terms and
conditions of employment which apply to a broad category of institution employees shall not
require an additional review under this Policy for matters which have previously been reviewed.
BOARD OF REGENTS REVIEW
Before a contract is executed, it must be submitted to the Office of the Attorney General for review
and approval for legal form and sufficiency, with a copy provided to the Chancellor. The Office of the
Attorney General shall communicate any significant legal concerns with the draft contract to the
institution's president and the Chancellor. The Chancellor shall communicate any significant concerns,
legal or otherwise, to the Chair of the Committee on Organization and Compensation. The President shall
consult with the Chancellor about any legal or other concerns before the contract is executed. Within two
business days after executing a contract subject to this policy, the President must submit it to the
Chancellor for Board of Regents review for informational purposes. The review will be conducted by the
Committee on Organization and Compensation. The President of the institution will be informed by the
Chancellor of any questions or concerns arising from the Board of Regents review of the executed
agreement. The Chancellor must submit any contracts subject to this policy for USM personnel to Office
of the Attorney General (with a copy to the Chair of the Committee on Organization and Compensation) and
to the Board of Regents for similar review.
Not later than September 1 of each year, the President of each institution shall certify in writing
to the Chancellor that the institution has complied with this Policy for every contract of the
institution covered by the Policy which was executed in the previous fiscal year. The Chancellor shall
report to the Board that such certifications have been received, as well as any non-compliance in either
the certification or the contract review process. Not later than September 1 of each year, the Chancellor
shall certify in writing to the Board of Regents that USM has complied with this policy for every
contract for USM personnel covered by this Policy which was executed in the previous fiscal year.