Audit probes "questionable" CSU executive compensation practices
Ben Roffee
Issue date: 11/13/07 Section: News
"This is public money we're talking about and the CSU needs to ensure that it's used appropriately. I expect the legislature will keep a close watch to make sure the increased accountability called for in this report actually happens," added Nuñez.
Assemblyman Anthony Portantino, who has been one of the central figures in protesting CSU executive compensation practices, echoed Speaker Nunez' remarks on Nov. 9 in a similar release.
"The deliberate and thorough report released today by the State Auditor confirms what many of us have long suspected: the CSU Board of Trustees, by approving exorbitant executive compensation expenditures during a statewide budget crisis, is not focusing on it's core mission: educating our children," he said.
Another vocal advocate of CSU compensation reform, Senator Leland Yee warned "The Trustees and the Chancellor…to take this audit seriously and begin investing in instruction rather than creating a get rich factory for executives."
The government officials opposed to the CSU executive compensation practices have also been early authors of legislation directed at regulating the very practices addressed in the report. Senator Yee's SB 190 passed through Governor Schwarzenegger's office with a signature of approval last month, requiring all executive compensation packages to be voted in open session.
On Nov. 12, the California Faculty Association released its analysis of the findings in a report titled, Weak Oversight & Poor CSU Policies Favor Executive Perks: An analysis of the state audit of CSU compensation policies and practices. CFA President Lillian Taiz cites a "large expenditure of foundation funds to further compensate already well-paid executives" as yet another faulty executive compensation practice.
Despite these proclamations, CSU officials rendered a much more optimistic analysis of the findings of the audit.
In a message to all CSU employees issued Nov. 6, Chancellor Reed maintains "the findings show that no policies were violated, and concludes that none of the actions taken by the CSU were inappropriate." According to the Chancellor, "the CSU is open to having audits because I believe that audits give us the opportunity to examine our policies and our processes and improve them.
Assemblyman Anthony Portantino, who has been one of the central figures in protesting CSU executive compensation practices, echoed Speaker Nunez' remarks on Nov. 9 in a similar release.
"The deliberate and thorough report released today by the State Auditor confirms what many of us have long suspected: the CSU Board of Trustees, by approving exorbitant executive compensation expenditures during a statewide budget crisis, is not focusing on it's core mission: educating our children," he said.
Another vocal advocate of CSU compensation reform, Senator Leland Yee warned "The Trustees and the Chancellor…to take this audit seriously and begin investing in instruction rather than creating a get rich factory for executives."
The government officials opposed to the CSU executive compensation practices have also been early authors of legislation directed at regulating the very practices addressed in the report. Senator Yee's SB 190 passed through Governor Schwarzenegger's office with a signature of approval last month, requiring all executive compensation packages to be voted in open session.
On Nov. 12, the California Faculty Association released its analysis of the findings in a report titled, Weak Oversight & Poor CSU Policies Favor Executive Perks: An analysis of the state audit of CSU compensation policies and practices. CFA President Lillian Taiz cites a "large expenditure of foundation funds to further compensate already well-paid executives" as yet another faulty executive compensation practice.
Despite these proclamations, CSU officials rendered a much more optimistic analysis of the findings of the audit.
In a message to all CSU employees issued Nov. 6, Chancellor Reed maintains "the findings show that no policies were violated, and concludes that none of the actions taken by the CSU were inappropriate." According to the Chancellor, "the CSU is open to having audits because I believe that audits give us the opportunity to examine our policies and our processes and improve them.
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