Salary Equity Proposal for Faculty and IAS 2013-2014 The proposed plan seeks to increase the median of all department codes and ranks to 85% of their comparison group CUPA medians. Individual adjustments will be possible to address extreme cases of inversion, compression, or other inequities. In addition, for those who do not receive a salary equity base adjustment, a one percent lump sum distribution will be made to individuals whose salary is below 100% of the CUPA median salary. On August 26, 2013 the Senate Executive Committee (SEC) received and reviewed several possible proposals for distributing $300,000 for faculty and $70,000 for IAS salary equity adjustments. The SEC then endorsed one as the basis for full Faculty Senate discussion. The proposal endorsed by SEC is described in detail below. Rationale College and University Professional Association (CUPA) Human Resources codes and salary data for peer institutions are used to determine how UW­L salaries compare. The data are specific to rank and academic areas of specialization, and have been in use within the System for many years. These data fluctuate over time and are often consulted when setting starting salaries for new hires. The proposal seeks to increase the median of all department codes and ranks to 85% of their comparison group CUPA medians. Within the faculty ranks, there are currently 29 group medians that fall short of 85% and there are an additional 15 groups under by 15% or more in the IAS ranks. There are insufficient funds to bring all groups to 86% in the 2013­2014 academic year, but 85% can be reached. The examples below illustrate how the base salaries would be adjusted for particular groups of faculty. The list of all groups that are currently below 85% of their CUPA peer medians are available here, along with the number (n) of individuals in each group and the amount ($/person) each on the individuals in the group would receive to bring the group median to 85%. Additional funds will be available to address individual salary inversion and inequities that have evolved over time within certain groups. Capping the equity adjustments for any one group at a $4,000 maximum will reduce the amount allocated to that group, while at the same time, making significant adjustments to their salary. The additional funding that would result from the capped plan would be used for individual cases. For faculty and IAS who do not receive a salary equity base adjustment, a one­time, one percent lump sum distribution will be made to individuals whose salary is below 100% of the CUPA median salary. Individuals receiving a salary equity base increase below one percent of their salary will also receive a lump sum distribution equal to the difference between one percent of their salary and the base adjustment. Example #1 The current base salary for each of five UW­L Associate Professors from a given department are listed in the table below. The CUPA median salary for Associate Professors in this particular department code is $63,503. The actual median salary for the group is $52,299, which is about 82% of the CUPA median. The proposed plan would move the median for this group to 85% of the CUPA median, which is $53,978 by giving each individual a base salary adjustment of $1,679, resulting in the figures shown. Faculty Members (n=5) Associate Prof 1 Associate Prof 2 Associate Prof 3 Associate Prof 4 Associate Prof 5 CUPA code Median Actual dept/rank Median CUPA Comparison Base Before Adjustment 50,378 50,487 52,299 55,438 58,604 63,503 $/person Adjustment 1,679 1,679 1,679 1,679 1,679 52,299 82.36% Base after Adjustment 52,057 52,166 53,978 57,117 60,283 63,503 Base Increase 3.33% 3.33% 3.21% 3.03% 2.86% 53,978 85.0% Note: If the base adjustment needed to reach move the median to 85% of the CUPA median is more than $4000, then the “Capped” version of the proposal would limit the adjustment to $4000. Since, in Example #1, the base adjustment is under $4000, the capped version of the plan would be no different. And, since the Base Adjustment is more than one percent of each individual's salary, these faculty members would not receive a one­time lump sum distribution. Example #2 The current base salary for each of five UW­L Professors from a given department code are listed in the table below. The CUPA median salary for Professors in this particular department code is $84,204. The actual median salary for the group is $70,679, which is about 84% of the CUPA median. The proposed plan would move the median for this group to 85% of the CUPA median (i.e. $71,574) by adjusting each individual base salary up by $895, resulting in the figures shown. Faculty Members (n=5) Base Before Adjustment $/person Adjustment Base after Adjustment Base Increase Professor 1 Professor 2 Professor 3 Professor 4 Professor 5 CUPA code Median Actual dept/rank Median CUPA Comparison 65,361 70,348 70,679 73,366 75,489 84,204 70,679 83.94% 895 895 895 895 895 66256 71243 71574 74261 76384 84,204 71,574 85.0% 1.37% 1.27% 1.27% 1.22% 1.19%