1. Special Committee on Presidential Selection and Compensation August 2011 Presented by CSU Chancellor Charles B. Reed

2. Overview of Current Practices 2

3. Recruiting and selecting presidents is the single most important responsibility of the Board of Trustees Board has operated within the guidance of searching for the very best leaders that have the necessary skills to be successful Students, faculty and the community deserve the very best leadership the Board of Trustees can provide We look for presidents with experience who can: articulate and implement a vision for the university develop a strategic plan and successfully implement it 3

4. Presidential Role and Responsibilities Expectation that a president works 24/7 and is responsible for a complex institution 4

5. Presidents are responsible for: Ensuring academic excellence, programs, people Budgets ranging from $25 million to $800 million Raising money 10-20% of general fund allocation each year Capital campaigns for endowments (cont.) 5

6. Presidential Responsibilities (cont.) Safety of students, faculty, staff – Emergency Preparedness Plan Community and business relations Shared governance on campus Forging relationships with constituencies – students, faculty, staff, alumni, boosters (cont.) 6

7. Complex athletic programs Facilities and capital improvements Police Health Centers Communications and marketing of the university on local and national stage Presidential Responsibilities (cont.) 7

8. Recruiting and managing senior staff Representing university night and day Managing ancillary operations such as parking, housing, book stores, food services, etc. Following labor contracts 8

9. Growing Our Own – Internal Under my leadership, CSU has promoted and mentored internal candidates Currently 9 out of 23 presidents were hired from within. (cont.) 9

10. Growing Our Own (cont.) Ruben Armiñana – VP Alexander Gonzalez – President Milton Gordon – VP Mohammed Qayoumi – VP Jolene Koester – VP Michael Ortiz – VP Leroy Morishita – VP Paul Zingg – VP Richard Rush - VP 10

11. Search Process CSU's practice has been to conduct an open search with a search advisory group. Since my arrival we have saved $2 million by not using search firms 11

12. Search Process (cont.) There are really only 2 models of searches: open and closed If focused more on promoting from within, would recommend a closed process Do not want to jeopardize internal candidates' status by having name public if they do not ultimately get selected (cont.) 12

13. Discourages internal candidates from applying Most systems have a closed system, where they make the final candidate's name public (as opposed to 3 finalists) Search Process (cont.) 13

14. Alternative Approach For internal transfers, consider an alternative selection policy that would include campus advisory committee 3 to 5 candidates considered Bring 1 to 3 candidates to be interviewed by board of trustees Search Process (cont.) 14

15. Guiding Principles for Setting Compensation Size of institution/Budget Complexity Length of service, quality of performance Research responsibilities Fundraising expectations Program offerings Athletics (budget, etc.) Mission Peer Institutions 15

16. California Environment Size and scope of state presents challenges Compensation – some presidents do not get full retirement benefits, not competitive Cost of living Selling/Buying homes Few benefits 16

17. www.calstate.edu