University of South Florida Board of Trustees Compensation Committee Conference Call Friday, November 22, 2013-2p.m. Meeting called to order by Jordan Zimmerman, Chair BOT Compensation Committee. Trustee Zimmerman welcomed the committee and asked Dr. Cindy Visot, Chief of Staff to call roll. Trustees present on call: Brian Lamb Byron Shinn Jordan Zimmerman It was noted that Trustee Sembler was out of the country but had reviewed the evaluation and provided a favorable response to the Chief of Staff to share with the committee. She deferred any decisions to the committee. Chair Zimmerman thanked everyone for participating in the call. He reviewed the role of the Compensation Committee. (Charged with performing an annual review of Dr. Judy Genshaft s performance by evaluating her performance against her goals.) He confirmed that all had received and reviewed the President s 2012-13 self-evaluation document and his brief summary of the document. Chair Zimmerman reviewed the 3 goals with the committee (noting that with each goal there are sub-goals). Chair Zimmerman commented that the 2012-13 academic year was Dr. Judy Genshaft s 13 th year as President and CEO of the University of South Florida System. USF System continues to be in great hands and there is strong leadership under Dr. Judy Genshaft. She has an outstanding administrative team and has made significant accomplishments. Chair Zimmerman provided an overview of where the USF System is as an institution: Continues to thrive as a NSF designated top university for research expenditures 9 th largest in the Nation Received a record-breaking $413 million for research awards in contracts and grants (2 nd in the state) Was selected by the Governor and legislature as the SUS institution that will lead and direct the Florida Center for Cybersecurity USF Health continues to develop programs that bring great success to the USF System, the Tampa Bay region, the State of Florida and the Nation Chair Zimmerman commented on the President s external activities. He mentioned that President Genshaft continues to maintain her association with several higher educational organizations ensuring USF remains at the forefront of national policy
discussions on education. She has completed her Chair role for the former Big East (now American) Athletic Conference s President s Council. She will continue on the Executive Committee in an ex-officio role. She continues to serve on the Board of Directors for the Association of Public and Land-grant Universities, is a member of the Florida Council of 100 and President-elect for Junior Achievement. Chair Zimmerman commented that President Genshaft is playing an incredibly important role in shaping the future of education for Florida too. He mentioned that the Trustees appreciate the legislature for restoring the $45 million base budget reduction and that with the leadership s keen focus on the long-term financial health and sustainability of the mission will ensure a solid financial future for USF. Trustees mentioned that with realigning revenues to expenses will result in savings that can be invested back into strategic priorities and that under the President s leadership we are seeing cost reductions, elimination of non-value added programs and an emphasis on financial stability. In addition, it was mentioned that research is what will continue to differentiate USF. The trustees reviewed the goals. Goal 1: Student Success Freshman retention rate (USF Tampa at or above 89%; USF St. Petersburg at or above 73%) GOAL MET USF Tampa 90% GOAL NOT MET USF St. Petersburg 69% 6-year graduation rate (USF Tampa at or above 54%; USF St. Petersburg at or above 32%) GOAL MET USF Tampa 57%; GOAL MET USF St. Petersburg 33% Average Fall FTIC SAT score (USF Tampa SAT at or above 1738; USF St. Petersburg at or above 1650) GOAL MET USF Tampa 1785; GOAL NOT MET USF St. Petersburg - 1585 Doctorates awarded for research and professionals (at or above 441) GOAL MET USF System 448 Postdoctoral appointees (at or above 312) GOAL NOT MET USF System - 303 Trustee Zimmerman commented that the data reported reflects an administration that is strongly focused on increasing student success. Trustee Shinn commented that the change in regional chancellor at USF St. Petersburg shows the President s emphasis on getting the institution focused on attaining their goals and that she is making tough decisions when institutions are falling short on their goals. Trustee Lamb noted that USF is already showing even more
success in some of these categories this fall and that it was recently mentioned at the BOG meeting. He feels the actions taken in the past and more recently were for sustainable success. In addition, Trustee Lamb noted that the President and her leadership team recently selected Postdoctoral appointees as the 10 th measurement for BOG accountability clearly showing the elevated importance of the criteria and the President s commitment to enhance this area. Goal 2: Research 1. Research & Innovation will continue to support and incentivize USF System research activities with an eye to increasing private business and industry partnerships in order to remain above the $400 million mark in externally sponsored contracts and grants. GOAL MET. Research awards for total contracts and grant awards for FY2012 exceeded $400 million at $413,310,068. Private partnership contracts and grant awards increased by $31.4 million or 20% (from $153 million to $184.4 million). 2. Research & Innovation will ensure that the USF System remains in the Top 50 in research expenditure rankings for public and private institutions. GOAL PARTIALLY MET. USF is ranked 33 in total research expenditures for public institutions by the National Science Foundation for latest data available. According to the FY2011 published data, USF went from 50th to 53rd in the NSF expenditure rankings for all institutions, public and private. The decline was not for a lack of growth in expenditures but an increase in institutions reporting. USF expenditures increased going from $385 million to $395 million (USF Tampa). We reported $443.2 million in expenditures for FY2012, an increase of $48.2 million so we are hopeful that the new rankings due in October 2013, USF will improve. Total Research Expenditures for FY2012: $451.2, 14% increase from FY2011. 3. Research & Innovation will foster an innovation culture and promote the intellectual property of faculty, students, and staff in order to remain in the top tier of patents and licensing universities. GOAL MET (a few highlights mentioned during the conference call) FY 2013 estimates show a record year for Technology Transfer with 50% increase in combined revenue and reimbursement, from $2 million to approximately $3 million (from FY2012 to FY2013). Options and licenses increased significantly for a 44% increase in a year where licensing managers added additional activities related to grants and increasing USF's profile. Of the 150 institutions reporting only 20 institutions had more licenses and options than USF. Nine start-ups in FY2013 (of the 150 institutions reporting only 15 institutions had more start-ups than USF). National Academy of Inventors (NAI) continues to be a tremendous success with 80 U.S. and international universities and governmental and non-profit research institutions. Membership has more than doubled in the past year (35 charter member institutions) with more than 2,000 individual inventor members and Fellows from over 100 universities and governmental and non-profit research institutions. USF has five NAI Fellows. USF is now represented on several national committees bringing additional national exposure to our research enterprise.
4. In acknowledgement of the commitment that the USF System has to the citizens of Florida, Research & Innovation will continue to enhance the workforce and increase employment in our community and state by attracting new business to our area and propelling start-up companies to success GOAL MET (a few highlights mentioned ) The Tampa Bay Technology Incubator (TBTI) grew from 24 to 42 resident and affiliate companies (75% increase) that have created more than 200 high wage ($65k+) jobs. TBTI program revenues from rent increased by 46% and occupancy rate in TBTI lab space has increased from 84% to 93%. USF and FHTCC will sponsor a new incubator program in Pasco called SMART Start. This will create a nice partnership with Pasco County. USF CONNECT hosted/co-hosted 28 training and networking events with over 600 attendees. This was an increase for events of 75% and for attendees by 200%. Created a formalized internship agreement and are actively engaged with faculty across campus to get more students involved with USF companies and provide more internship opportunities. Student engagement with TBTI companies has increased 233%, which has led to an increase in number of students hired by the companies. Trustee Shinn commented that considering sequestration, USF researchers have been pursuing numerous grant opportunities. He credited the President s strong working relationship with the Sr. VP for Research and Innovation and their passion for research enhancements and enthusiasm for strengthening the research agenda. Trustee Lamb mentioned that the Sr. VP for Research and Innovation was recognized earlier that day at the Tampa Bay Partnership s annual meeting for his partnerships with the High Tech Corridor to enhance economic development in the region and state. He noted that community leaders are recognizing the tremendous opportunities and that USF and our President are leading the way to bring companies to the area. Trustee Zimmerman commented that our research agenda is extremely commendable and continues to be viewed positively by State and National leaders. GOAL 3: Revenue Generating Funds including Fundraising 1. Resource Allocation Process. Create a structure whereby baseline funding is developed to meet the core missions of the university. Incorporate in this structure a process that requires a ROI for investment as well as a direct correlation to strategic goals. Begin to develop a process whereby operational expenditures are funded from recurring sources. GOAL PARTIALLY MET Budget Committees were formed and were given 24 months to provide a recommendation to the President and her Management Team for a Resource Allocation process that incorporates the most effective method of budgeting for our University structure as well as creating a methodology for identifying appropriate strategic investments and assessing the effectiveness of these investments. The Committees are to provide these recommendations by February 1, 2014 in order to implement the new processes by July 1, 2014. Year one of a two-year process is complete, therefore, the University has achieved phase 1 of this 2-phase goal.
2. Development will maintain the upward trend of philanthropic dollars raised plus revenue enhancements, such as: state and local grant funding, corporate/public/ private support, etc.; close the 1st phase of the Unstoppable Campaign ($600 million); and announce Phase 2 for a Total Campaign Goal: $1 billion (additional $400 million over 5 years for $1 Billion effort). Maintain Upward Trend of Philanthropic Dollars Raised ($80-$100 million) GOAL PARTIALLY MET: Total gifts and commitments for FY2013: $79.6 million. (Within $400k of the goal range.). State and Local Grant Funding and Corporate Support GOAL MET: Philanthropic support received from corporations, corporate foundations, and private foundations increased by approximately 21% from the prior fiscal year. The Office of Corporate and Foundation Relations exceeded its established fundraising goal by $6,483,041 despite a 25% reduction in staff the prior year. The launch of the Partner with USF website has been a positive step in building a bridge to the external community and facilitating collaboration with internal partners. The Office of Corporate and Foundation Relations now manages a USF Business Engagement Center and serve as points of contact for industry to connect with the University. USF Unstoppable Campaign GOAL MET: Successfully completed phase 1 of campaign with $621 million raised on a goal of $600 million! Announcement of Phase 2 ($1 billion goal/raise $400 million over the next 5 years) is scheduled to be officially announced at the November 15 Gala Celebration at the Tampa Bay Times Forum. Comprehensive media coverage occurred within the Tampa Bay region on the campaign's success. 3. Return on investment. The Foundation will raise a minimum of $6 for every $1 invested in the operations. For better efficiencies, University Advancement will be realigning the staffing structure in key areas and USF Health Development will move to a centralized model, as will some of the colleges. NACUBO Ranking Endowment: Maintain a top quartile (better than 75% of others) for long-term results (5-10 years). GOAL MET Since the inception of the Unstoppable Campaign, USF Foundation has maintained an annual average of 17 cents on the dollar, which provides a 6:1 ratio. Though 2013 audited numbers are not available yet, preliminary estimates indicate that the average will remain constant. In addition, for better efficiencies, USF Health development and other areas such as Student Affairs have moved to a centralized model. In addition, strategic changes were made to consolidate departments and reducing staff by 25%. As a result of enhanced efficiencies, fundraising results increased by 21%. Resources were redeployed to focus on prospect strategy and eliminate duplication. The most recent NACUBO rankings placed USF Foundation Endowment Fund in the top quartile among other funds in the $100-500 million endowment size peer group for the 5 and 10 year return period. Preliminary data indicates continued long-term results at or
near top quartile for FY2013. USF has the 6th largest endowment nationally for public universities founded since 1900. 4. USF Alumni Association has set a goal of increased membership of 1100 members, more local involvement and partnering with USF Credit Union for financial services and affinity programming. GOAL MET USF Alumni Association had its most successful year ever for membership with 1,279 new members, plus an additional 5,363 new graduate complimentary one-year members. Total member for FY2013 is 20,743. Life membership remains a focus area with an increase of 665 new life members, double the highest ever growth over a 12- month period. USFAA continues to enhance activities to engage local alumni. A chapter improvement plan is being developed that will increase its ability to identify and engage alumni. New initiatives were undertaken this past year such as Fast 56 program that recognizes Bull owned or operated companies. USFAA partnered with the USF Federal Credit Union to implement a new affinity program, including credit card, debit card and auto loan programs. In the past 9 months since its inception, 1,700 new USF Federal Credit Union/USFAA debit and credit cards are in use. Financial incentives in royalty and sponsorship to USFAA provide a positive ROI. 5. USF Health will complete the planning, secure the funding and begin building the statewide Heart Institute by securing the second round of state funding; implementing, planning and designing a world class heart institute based on new technologies such as molecular genomics and stem cell therapies; and satisfying the county s investment by creating a portal with the American College of Cardiology based at USF. GOAL PARTIALLY MET Received a $1 million grant from Hillsborough County to build and equip a laboratory to serve the USF Health Heart Institute initiative. The 5th floor shell space at the Alzheimer's Institute was built-out and outfitted for modern molecular biology and genomics research with current occupants for the laboratory with a grant portfolio of five NIH grants advocating to $6-7 million in aggregate. Total NIH award dollars from these grants for FY2011-12 was $1.46 million. Total cardiovascular grant support from the NIH and elsewhere to USF Health investigators exceeded $5 million. The State of Florida allocated $6.7 million for planning and $12.5 million for construction of the USF Health Heart Institute. Architectural renderings of a five-story 100,000 sq ft building and site identification are complete. Anticipating additional state funding is forthcoming over the next 2 years with a cumulative target of $50 million for construction. Contingency plans for smaller building is developed if allocation is less than expected. Prospect donors have been identified including a potential lead gift for $5 million and commitment to lead campaign for an additional $15 million. Heart Institute faculty with NIH grants are currently being recruited. Two to four new, funded faculty per year is the goal. 6. CAMLS sales and economic development targets are met or exceeded as measured by sales on or above projection for 2013 and 2014; working with the County and the EDC to develop and stage an Imagining the Healthcare
Organizations and Technologies of the Future international conference at CAMLS; and the implementation of the Tampa Bay Research and Innovation Center (TBRIC) and demonstrating success in attracting organizations to USF and Tampa Bay. GOAL PARTIALLY MET Health Professions Conferencing Corporation (HPCC) will achieve and exceed the $20,500,000 of revenue projected in the FY2013 revised budget submitted to USF. CAMLS sales for FY13 were $3,226,463. Target was $4.2 million. Target for FY2014 will stay at $2.5 million. TBRIC was fully operationalized January 2013. Revised 6- month financial target of $400k was met through a combination of contract revenue and in-kind donation of software. FY2014 projection of $800k to cover operations, debt service and depreciation is on target. MEDIFUTURE: collaborated with County and EDC to sponsor Medifuture event downtown Tampa. CAMLS is an integral part of planning with EDC for downtown incubator as an outcome of the event. 7. USF Health will create, negotiate and complete creative partnerships in order to stabilize its financial future by completing the planning and development of specialty care in The Villages; working with TGH to stabilize the relationship and sign a new affiliation agreement; developing a plan for a closer financial relationship with one or more hospitals to mitigate risks; and implement the partnership with Bisk online health to create a masters in health informatics. GOAL PARTIALLY MET Navigated agreement and cultural differences with the Villages with specialty care building in under construction and on time for completion in Fall 2013. First four physicians and 2 NPs signed with start date beginning of fiscal year 2013-2014 with additional physicians and nurse practitioners actively being recruited for specialties. Community engagement to assure USF is viewed as solid contributing partner within the community. USF Health and TGH leadership are meeting regularly with enhanced communications and improved relationship. First co-branded and advertised program (bariatrics) opened this year. Affiliation agreement actively reviewed and negotiated. Anticipated new agreement signed Fall 2013 (now signed as evergreen agreement which removes potential approaching a cliff ending to our affiliation). The following occurred during FY2012-2013: Trauma relationship with HCA, neurosurgery contracts with HCA, Lakeland Regional and Florida Hospital, transactional contracts with Florida Hospital system for breast, vascular and cardiology. 8. Student Recruitment. Increase out of state and international student enrollment numbers by 5%. GOAL MET Out-of-state and international student enrollment across the USF System increased by 19.9%
9. Online Learning and Revenue. System-wide, increase by approximately 1.4% over 2011-12. This will result in tuition revenue from online learning increasing by 10% year-over-year. GOAL MET Online Learning and Revenue. System-wide, the number of online SCH delivered increased 12% in academic year 12/13 (over academic year 11/12), from 234,741 SCH to 261,912 SCH. This resulted in an increase of 13.6% (+$6.6 M, excluding increases in distance learning fees) in gross tuition and fee revenue from online learning, year-overyear, across the USF System. Trustee Zimmerman commented that the fundraising that occurred during this past year was sensational, especially in these economic times. He felt the goals were ambitious last year and is pleased that the annual giving was as high as it was. In addition, Zimmerman commented that the Alumni Association is really enhancing its role within the institution and programs such as the Fast 56 will aid in an increase in membership and alumni donors. It was mentioned that under the leadership of Dr. Genshaft, trustees are seeing an appropriate and strong focus on strategic goals getting better and sharper. In addition, trustees are seeing the evolution of a system as it receives top recognition as an institutional leader in research, health, technology and cybersecurity. Trustee Lamb also commented about the record campaign during these economic times and the strategic use of funds have been critical as we work to get our spending in line with our revenue. He mentioned that the financial steps taken this past year will sustain us in the future. Trustee Shinn commented how the Lakeland separation put us in a tough financial place but with the President s leadership and financial decisions made this past year we have been able to sustain. He added that when a large amount of money from cash and reserves occurs it s challenging for ones financial portfolio. The committee agreed this showed strong leadership as hard decisions had to be made. Discussion occurred about the goals and overall performance with the committee deciding to give more weight to student success. The breakdown agreed upon is 40%, 30%, 30%. Trustee Zimmerman explained that the committee may award up to 70% of the $175,000 annual performance stipend with the Board Chair having discretion of up to 30% or $52,500. Committee members commented that holistically, the President has achieved beyond the goals and that many of those goals not met were out of her control. One commented that changing leadership at USFSP showed her strong will to bring in leaders that are committed to focusing on the goals set forth and be apart. The members did agree overall, the total 100% should not be awarded and would share that with the Chair but they should award up to the 70% based on the President s performance and that the additional discretionary awards should come from the Board Chair after the full Board discusses the institutional performance versus the President s performance. After discussion the committee approved to recommend: Based on a comprehensive review and subsequent discussion by the Compensation Committee, I hereby move that this committee recommends to the Board of Trustees that Dr. Judy Genshaft be awarded 70% of her potential 2012-13 performance stipend. Trustee Lamb mentioned that all funds come from private dollars. Dr. Visot explained that only the first $200,000 of the President s salary comes from state dollars. All other compensation comes from private dollars, the same for all SUS Presidents.
PRESIDENT GENSHAFT S GOALS FOR 2013-2014 Student success Research Revenue generating funds Chair Zimmerman thanked the committee for their hard work. Chair Zimmerman thanked Dr. Visot for all her assistance in preparing him for today s call. With no further business Chair Zimmerman adjourned the call at 3:10 p.m.