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Financial Affairs Committee Report on Faculty Compensation Analysis

The Financial Affairs Committee's final report on faculty compensation analysis includes examining total compensation, salary raises at comparable institutions, and recommendations for merit raises. The report discusses the use of cost-of-living adjustments (COLA), reviews data from various institutions, and outlines net operating surplus figures from previous fiscal years.

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Financial Affairs Committee Report on Faculty Compensation Analysis

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  1. Financial Affairs Committee Final Report February 14, 2024

  2. Financial Affairs Committee (FAC) • Nicole Boyson, DMSB - Finance Group • Apoo Koticha, DMSB - Finance Group • Joseph McNabb, CPS - Graduate Programs • Srinivas Sridhar, COS - Physics • Juliana Spahr, Mills – English • Deb Copeland, BCHS - SOPPS--chair 2

  3. Charge 1 • In light of increases in the cost of living, the committee is tasked with the following responsibilities: a) Examine the total faculty compensation. b) Review comparable institutions and analyze salary raises. c) Make recommendations for merit raises for full time faculty in 2024. 3

  4. a. Examine the total faculty compensation • Compensation = initial salary + merit + equity (when applicable) • Compensation Module within the Faculty Handbook describes merit is connected employee performance as it relates to teaching, scholarship, and service • Merit is NOT intended to account for cost-of-living increases • However, nationally COLA (cost of living adjustments) are annually updated by the Federal Government and the Social Security Administration 4

  5. Table 1—FAC report Social Security Administration COLA (Cost of Living Adjustments) Source: https://www.ssa.gov/oact/cola/colaseries.html 2022 2023 2021 COL A 3.2 5.9 8.7 • FAC used the cost-of-living adjustments (COLA) determined by the Federal Government and the Social Security Administration (SSA) to adjust the payments made to retirees in the SSA system. This amounts to an 18.8% increase over the above 3 years. • 5

  6. b. Review match-mate institution data & compare salary Table 3a: AAUP Faculty Compensation Survey Summary 2022/23 salary adjusted; by 50% of COLI 2022/23 salary adjusted; by 25% of COLI 2020/21 Salary 2021/22 Salary 2022/23 Salary US News Rank (2022) Adj COLI (Boston = 1.00) Institution State COLI Prof Assoc Asst Prof Assoc Asst Prof Assoc Asst Prof Assoc Asst Prof Assoc Asst 39 153.4 1.00 43 153.4 1.00 60 153.4 1.00 62 150.6 0.98 47 95.8 0.65 20 75 0.49 35 168.6 1.10 17 95.5 0.62 60 93.7 0.60 89 101 0.66 67 84.1 0.55 40 153.4 1.00 73 101.6 0.66 67 122.4 0.80 47 81.3 0.53 Boston C Boston U Brandeis GWU Lehigh Notre Dame IN NYU Rice RPI SMU Syracuse Tufts Tulane U of Miami Wake Forest NC MA MA MA DC PA 191.7 121.3 115.6 197.9 136.2 109.7 158.4 113.2 186.0 118.1 101.4 166.0 114.6 103.6 190.0 122.2 114.0 214.3 125.2 104.4 201.6 127.4 117.8 160.0 114.7 108.4 175.2 117.2 116.4 137.9 101.0 159.0 112.8 157.9 99.6 167.1 118.3 149.2 100.7 192.0 204.1 164.9 189.7 167.3 193.4 242.5 206.6 166.8 176.4 141.5 162.3 156.7 174.7 152.3 123.2 120.1 141.2 115.8 116.0 100.9 122.6 104.7 114.6 107.2 124.7 119.5 142.8 127.7 129.2 122.9 114.1 111.7 119.2 119.4 101.8 116.1 101.8 118.4 122.0 106.4 200.0 203.3 171.3 192.3 168.6 206.3 257.6 217.5 169.6 180.8 145.7 168.8 161.0 183.8 153.7 126.1 123.2 147.5 120.2 119.6 102.2 126.7 107.0 115.4 103.9 133.6 128.1 149.9 132.3 136.9 124.7 121.6 109.4 122.9 127.8 104.6 123.0 104.6 107.6 121.6 126.6 107.3 109.8 200.0 203.3 171.3 193.2 190.9 260.2 251.8 250.5 197.6 204.3 175.7 168.8 181.5 195.4 187.8 126.1 147.5 119.6 127.3 130.6 168.5 146.5 157.7 141.7 138.8 126.1 123.0 121.3 134.6 134.1 123.2 120.2 102.2 107.5 117.6 161.6 129.3 143.6 127.5 144.4 108.1 104.6 137.1 114.1 102.7 200.0 203.3 171.3 194.1 213.1 314.1 246.0 283.4 225.6 227.7 205.7 168.8 202.0 207.1 221.9 126.1 147.5 119.6 127.9 145.9 203.4 143.1 178.4 161.7 154.8 147.7 123.0 135.0 142.6 158.5 123.2 120.2 102.2 108.0 131.3 195.1 126.3 162.5 145.5 161.0 126.5 104.6 152.6 120.9 121.4 97.2 NY TX NY TX NY MA LA FL 83.1 95.4 118.8 98.8 80.9 86.5 99.9 89.6 99.7 81.9 84.1 174.1 116.2 104.4 174.1 112.3 (0.0) (3.9) (0%) (3%) Average Northeastern MA NU-Ave. gap Diff / NU (%) 0.776 179.4 176.8 (2.6) (1%) 119.7 109.1 116.7 101.5 (3.0) (3%) 185.4 179.3 (6.1) (3%) 124.8 112.4 120.4 106.2 (4.4) (4%) 202.1 179.3 (22.8) (13%) 136.2 120.4 (15.8) (16.7) (13%) (16%) 122.9 106.2 218.9 179.3 (39.6) (22%) 147.7 120.4 (27.3) (27.2) (23%) (26%) 133.4 106.2 44 153.4 1.00 97.5 (6.9) (7%) (7.6) (7%) (6.2) (6%) 6 (13.9%) (3.8%) (4.3%) (23.5%)

  7. Table 3C of FAC report AAUP Faculty Compensation Survey –Boston University & Boston College 2020/21 Salary 2021/22 Salary 2022/23 Salary US News Rank (2022) Adj COLI (Boston = 1.00) Institution State COLI Prof Assoc Asst Prof Assoc Asst Prof Assoc Asst 36 153.4 1.00 41 153.4 1.00 Boston C Boston U MA MA 191.7 121.3 115.6 197.9 136.2 109.7 192.0 204.1 123.2 120.1 141.2 115.8 200.0 203.3 126.1 123.2 147.5 120.2 194.8 128.8 112.7 174.1 112.3 (20.7) (16.5) (15.2) (12%) (15%) (16%) Average Northeastern MA NU-Ave. gap Diff / NU (%) 1.000 198.1 176.8 (21.3) (12%) 132.2 118.0 116.7 101.5 (15.5) (16.5) (13%) (16%) 201.7 179.3 (22.4) (12%) 136.8 121.7 120.4 106.2 (16.4) (15.5) (14%) (15%) 44 153.4 1.00 97.5 (13.8%) (13.6%) 7

  8. Table 4 Net Operating Surplus (Increase in net assets from operating activities) FY 2023 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 Net Operating Surplus $66,315,000 $107,580,000 $135,715,000 $184,572,000 $116,850,000 $151,714,000 $132,403,000 6y Compounded Return 12% Source: https://finance.northeastern.edu/wp-content/uploads/Northeastern-University-FY23-Financial-Statements.pdf 8

  9. Charge 1 Resolutions WHEREAS the annual raises awarded to faculty for the last several years have been well below the cost of living increases due to inflation, and WHEREAS the faculty salaries at all levels are up to 20% below Boston area match mates based on AAUP salary data, BE IT RESOLVED that the recommended raise pool for merit for FY 2025 be 8.4%, at a minimum, of continuing salaries starting on July 1, 2024, AND BE IT FURTHER RESOLVED that the Provost develop a plan to align faculty salaries with Boston area match mates. 9

  10. Charge 2 Whereas the 2022-2023 FAC report has provided several resolutions for the University to enhance the oversight of retirement plans, the fund menu, fees, and the quality of reporting to plan participants, the committee shall: Examine the University’s actions and plan to implement these resolutions. 10

  11. Oversight of retirement plans • Met with SVP Nedell & VP Grazulis • We appreciate the new improvements to the retirement plan announced recently – Including the addition of the Roth 403(b) as an additional retirement savings instrument • Administrative actions on several items were delayed due to active litigation 11

  12. FAC Information shared • Faculty participation in the Investment Committee – examples shared from 4 universities (MIT, U Penn, Yale & Duke) who chose to include content expert faculty • Participant Committee – scope: provide a voice for plan participants with respect to the plan – membership: elected from all participant groups including faculty, staff, and retirees – activity/ies: regularly surveying all participants and holding occasional town halls for participants to provide feedback • Website – legal and regulatory information about retirement plans was readily available and presented to employees in a user-friendly interface 12

  13. Charge 2 Resolution WHEREAS the 2022-2023 FAC report has provided several resolutions for the University to enhance the oversight of retirement plans, the fund menu, fees, and the quality of reporting to plan participants, and WHEREAS University actions on the above-mentioned resolutions are still forthcoming, BE IT RESOLVED that that the Provost bring to the attention of the appropriate office the need for demonstrable progress on the resolutions concerning the retirement plan that were approved by the Senate in 2023. 13

  14. Resolutions Charge 1: BE IT RESOLVED that the recommended raise pool for merit for FY 2025 be 8.4%, at a minimum, of continuing salaries starting on July 1, 2024, AND BE IT FURTHER RESOLVED that the Provost develop a plan to align faculty salaries with Boston area match mates. Charge 2: BE IT RESOLVED that that the Provost bring to the attention of the appropriate office the need for demonstrable progress on the resolutions concerning the retirement plan that were approved by the Senate in 2023. 14

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