St. Lawrence University Executive Compensation Policy
Adopted June 22, 2014 by the Board of Trustees in compliance with the New York State Revitalization Act
The President and the Board of Trustees shall define the University’s executive and key positions, which shall generally include all officers and those designated by the President as senior staff (“Executive Employees”) that this Policy shall apply to.
To provide guidance for setting compensation for the President and Executive Employees and to encourage the attraction and retention of highly qualified individuals possessing the experience and skills to improve the overall performance of the University in fulfilling its mission.
President Compensation: The Board of Trustees, upon review and recommendation of the Compensation Committee, shall set the President’s total compensation.
Executive Employee Compensation: The Compensation Committee, upon recommendation of the President, shall annually set the total compensation of all other Executive Employees.
Compensation plays an important role in attracting, motivating and retaining the President and Executive Employees. Presidential and Executive Employee compensation shall be competitive within the limits of available financial resources and shall comply with applicable law. Further, as described below, compensation will be determined in a manner to ensure that it is presumed reasonable pursuant to IRS regulations. To ensure fair and equitable compensation for the President and Executive Employees, the University shall follow the three steps of the Internal Revenue Service rebuttable presumption process:
- The Board or the Compensation Committee, acting without individuals who have a conflict of interest in the transaction, shall determine and approve in advance the total compensation to be paid. The independent body may request that the interested individual present information or answer questions prior to commencing its deliberations or voting related to the compensation;
- The Board shall periodically review the compensation of the President in connection with his contract of employment. The Board shall direct its Compensation Committee to have compiled by an independent firm or organization (such as Aon Hewitt’s Executive Compensation Consulting Group or a similar firm) appropriate comparable data specifically related to the President’s compensation and to make a recommendation for the President’s total compensation to it based, in part, upon its review of such data;
- The Compensation Committee with the advice of the President shall annually review the compensation of all other Executive Employees in connection with their employment. The Compensation Committee shall use and rely, in part, upon its review of comparable data compiled by independent organizations such as CUPA or Chronicle of Higher Education in setting their total compensation, additionally, the Compensation Committee may have compiled by an independent firm or organization appropriate comparable data specifically related to the any Executive Employee as it deems necessary; and
- The Board and the Compensation Committee shall adequately and timely document the basis for its determination concurrently with making any decision related to the compensation of the President or an Executive Employee.