Board Rule 302: Compensation Policy

The University of Alabama Board of Trustees has established Board Rule 302, which outlines the Compensation Policy. This policy mandates that the Compensation Committee of the board must approve proposed salaries and payments, including extraordinary benefits, for any employee or candidate whose current or proposed UAB salary exceeds a specified level. This level, subject to annual review, is currently set at $450,000*. The compensation of the presidents, provosts, vice presidents and such other senior academic and administrative officers as designated by the Compensation Committee must be approved.

* Effective June 7, 2024. Amount is subject to change annually.

Definitions

UAB Salary: Total salary paid by UAB, including any incentive, bonus, fixed increment, or other similar payments.

Extraordinary Benefits: Benefits that are not available to all regular faculty and staff.

Process

1. Initial Submission
   Compensation recommendations for new hires and current employees should be submitted to the appropriate senior executive.
2. Senior Executive Review
   Upon receipt, the appropriate senior executive (Provost, Vice President for Finance, Senior Vice President for Advancement and Strategic Initiatives, or CEO of the UAB Health System Authority) will review the compensation recommendation.
3. Forwarding Documentation
   If approved, the senior executive will forward the documentation (letter of offer, CV/resume) to the Board Liaison in the Office of the President and the Chief Human Resources Officer.
   • Submissions for the UAB Health System Authority will be reviewed and approved by the UAB Health System Authority Board of Directors.
4. Presidential and Chancellor Review
   The Board Liaison will prepare the submission for review by the President and, if approved, for submission to the Chancellor.
   • The Board Liaison will provide the originating department and the appropriate senior executive with copies of the submission approved by the President.
5. Board Response and Notification
   The Board Liaison will receive the Board’s response and forward the approval notification from the UA System Office to the senior administrator and the Vice President for Finance for processing.
   • The senior executive will communicate the Board’s response to the requesting department.

Submission Timeline

Current Employees: Departments must allow sufficient time for campus review and Board approval before the payment’s effective date.

New Hires: Campus review and Board approval must occur before extending a written offer to the candidate.