NORTHWESTERN MICHIGAN COLLEGE
BOARD OF TRUSTEESSTUDY SESSION
Wednesday, July 23, 2008, Oleson Center

CALL TO ORDER — Chair Walter J. Hooper called the study session to order at 9:20 a.m.

APPROVAL OF AGENDA - On a motion by Doug Bishop, seconded by Bob Brick, the agenda was approved.

DISCUSSION ITEM – PRESIDENT’S CONTRACT
Ross Childs, President’s Compensation Committee chair, described the proposed changes to the President’s contract. 

Trustees made many positive comments regarding the president’s devotion to the college and his performance.  Ross reminded trustees of their prior decision to move the president’s compensation toward the top 25th percentile of the composite of Michigan community college presidents’ compensation.  He stated it is important to recognize there are positions in business that Tim Nelson, or anyone in a position like his, could be moving to that would be comparable or higher.  Ross would like to continue his research and complete the survey of community college presidents’ compensation packages.  While committed to moving Tim to the 25th percentile, Ross wants it to be accomplished in an orderly fashion, beginning next year.

Questions and suggestions:

Bill Myers questioned why we have been using the same index for years. Ross explained it was the index used for other employee groups, but they could research other metrics for something ore appropriate index.  Bill stated he’d like to see something tied to local faculty salaries and the regional economy, perhaps a combination of the health of the SEV and state and local economies. He suggested that, based on such a composite, a pool of funds could be established and raises allocated from the pool based on performance.

There was discussion about why the college isn’t shifting to performance based salary increases and whether it is time for NMC to look at doing away with the step system currently used by employee groups.  Ross stated such changes would have to begin with forums with faculty and staff.

Doug Bishop expressed his support for the goal of moving presidential salary to where it ought to be and would like to see it implemented. 

Elaine Wood agreed it would be a good idea to look at a different metric.    

In addition to amendments shown on the draft contract:

1. Trustees asked that the CPI-U be removed as a metric, to be replaced with another, to be identified following further discussion with President Nelson.
2. The word “satisfactory” in Item 4. Salary, should be replaced with “acceptable.”
3. Trustees asked that Item 6, Fringe Benefits, be rewritten to say that the president will use vacation days within the year after they are accumulated or cash them out at the end of the second  year. 
4. Trustees discussed Item B. II. Office Holder Allowance. Jay stated he will ask again for an analysis of how that money has been spent. Until that is received, no changes are recommended.  Analysis should be scrutinized to determine whether any expenses currently paid out of the allowance can be paid out of operations.
5. Life insurance is to be raised to $1,000,000, $500,000 of which will be payable to the college and $500,000 to the president’s designated beneficiary.  Ross Childs will research and inform trustees of the cost for that change.
6.  The words “and associated expenses” will be added to Item B. Other Benefits, v. Professional Meetings.

Recorded by Karen Sabin