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Southeast Missouri State University

Faculty Compensation Committee

Faculty Compensation Committee

Year End Committee Report

May 2008

Base Merit Pay

We developed a merit pay proposal for presentation at the spring Budget Review Committee meeting.Our committee deliberations considered the extent to which historic salary increases have kept pace with inflation as measured by the Consumer Price Index.According to DOL, CPI for urban St. Louis consumers increased slightly more than 23% from 2000.However, faculty base pay has increased approximately 20% during the same period (this includes 25% funding promotion and post-prof merit).Considering this and a DOL February projected CPI of 4%, we proposed a faculty base merit increase of 4% ($1,273,768). (Any base salary increase is contingent upon available funding from state appropriations plus student fees.) After negotiations and compromise during the budget review process, our proposal was reduced to 3%.President Dobbins has since indicated his support of a 3.25% base merit pay increase made possible by additional state appropriations and some one-time monies.

Equity Pay Adjustments

In the past, a small number of salary equity adjustments were made for professors in departments where market conditions dedicated a substantially higher starting salary for new faculty.These are called Position Equity adjustments.We proposed $22,000 at Budget Review for funding these adjustments.

Equation Equity adjustments are made for those individuals identified by regression analysis to be substantially below the national average for their discipline.We proposed $11,000 at Budget Review to fund these adjustments.Assuming a continuation of these inequities, the Faculty Compensation Committee should anticipate participating in future compensation studies and supporting recommendations aimed at alleviating salary inequities.

Promotion and Post-Professorial Merit Equity Adjustments

In 2003, post-professorial merit was created by Faculty Senate bill 96-A-05.Faculty became eligible to apply five years after attaining the rank of full professor.Approximately 40 faculty members were awarded post-professorial merit in 2004-2007.Because these individuals were unable to benefit from the new increase in merit pay when advancing from associate to full, a post-professional merit adjustment was proposed and partially funded last year.Faculty Compensation Committee should revisit this issue for the spring 2010 Budget Review process.

Faculty Compensation Committee should also consider proposals that address inequities in base pay increase for assistants promoted to associate professors, and associates promoted to full professors.

Note that in the recent past, Faculty Compensation Committee has prioritized compensation proposals by placing merit base pay requests first, followed by individual equity adjustment requests, then promotion and post-prof adjustment requests.Given scarce financial resources and the competitive nature of the budget review process, adjustments to promotion and post-prof merit rewards might be limited.

However, funding for promotion and post-prof merit comes from a pool of funds consisting of 25% of the increase of faculty base merit.The amount of base merit increase, the number of faculty successfully promoted, and the number of professors receiving post-prof merit influence the size of this pool.Although the pool has historically run a deficit, a surplus is quite possible which could very well fund proposed promotion and post-prof merit increases.

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