KCTCS System President Market Analysis Report February 22, 2016 Presented by: Lyle S. Hanna, President and CEO Table of Contents Executive Summary....................................................................................................................................... 3 Introduction .......................................................................................................................................... 4 About Hanna Resource Group .............................................................................................................. 4 About KCTCS.......................................................................................................................................... 5 Market Analysis............................................................................................................................................. 6 Findings ....................................................................................................................................................... 13 pg. 2 Executive Summary In 2015, Hanna Resource Group (HRG) was asked to conduct a compensation market analysis on the KCTCS System President position to ensure base salary and total pay were competitive in the marketplace. Extensive research was conducted on the System President position using survey sources such as the College and University Professional Association of Human Resources (CUPA-HR), The Chronicle of Higher Education, Buck Consultants, Dolan Technologies, Kenexa IBM, ERI, AACC, and phone calls to individual college systems across the country. After much research, HRG decided to use the following data cuts: • Individual benchmark institution list created by the KCTCS System Office Staff • The Chronicle of Higher Education • Four CUPA-HR scope cuts – FTE, Operating Expense, Student FTE, all Associates degreed colleges • Kentucky public higher educational institutions The results show that Dr. Box’s base salary is competitive at $345K versus $347K in the market, as well as his total compensation of $375K versus $358K in the market. pg. 3 Introduction About Hanna Resource Group Hanna Resource Group is a national frontrunner in the Human Resource Consulting industry. Our staff is highly credentialed and is committed to enhancing the value of the people driving a business. We stay abreast of current laws, legislation, economic climate, and strategies to ensure a company is fit and is challenging employees to perform to their full potential. HRG knows that education opens the door for future leaders, innovators, and change-makers, so we are committed to ensuring that educational institutions at all levels receive the support and guidance they need to function at their optimal level. Our team has over two decades of experience leading projects to benefit institutions of higher education including Kentucky Community and Technical College System, the University of Kentucky, Eastern Kentucky University, and Kaplan, Inc., whose locations across the globe serve hundreds of thousands of students at any given time. Lyle Hanna, SPHR, SHRM-SCP Prior to forming HRG, which focuses on innovative business and human resource strategy, Lyle was Managing Director for the Compensation, Benefits & Retirement Group division offices of Palmer & Cay in Kentucky, Tennessee and North Carolina. Lyle served as a Principal and Global Business Development Consultant in the Louisville office of William M. Mercer, Inc. He is also the former Director of Human Resources for Jerrico, Inc. Before that, Lyle worked for Texas Instruments for nine years, four of which he served as a Manager on the Corporate Human Resources staff and was responsible for all EEO and Affirmative Action. Lyle is the founder of Best Places to Work in Kentucky. He works with organizations to align goals, build stronger culture and improve results. Lyle is a graduate of the College of Wooster with a B.A. in Urban Studies (Economics / Political Science). In 1992 he achieved lifetime certification as a Senior Professional in Human Resources (SPHR). Kurt Kessler, LSSBB Kurt is a consultant with 28 years of experience in Human Resources and Operational Excellence. Before consulting with the Hanna Resource Group, he worked for Lexmark International for 17 years in various roles. While in Lexmark HR, he worked in executive compensation, stock options administration, succession planning, and systems strategy. While at Lexmark in Operational Excellence, he worked as a Lean Six Sigma Black Belt for 9 years consulting with executives on process design and mentoring project managers. He also worked for 5 years for Nationwide Insurance overseeing compensation recommendations, managing HRIM systems, consulting in the mergers and acquisitions of insurance companies, and managing the HR operating budget. He is a former global resource for William M. Mercer. In this capacity, he provided technical and analytical support to the compensation consulting practice as well as software development. He also enjoys Kaggle competitions using data science to solve real world problems. His areas of expertise include compensation planning, systems development, data science, Lean Six Sigma / process design, and statistical analysis. Kurt is a graduate of the University of Louisville (Finance), Eastern Kentucky University (Economics), and Sullivan University (Computer Science). pg. 4 About KCTCS Kentucky Community and Technical College System has 16 colleges and over 70 campuses across the state, providing first-rate, affordable, post-secondary education to thousands of students, wherever they may be. The focus on providing students with a variety of valuable and relevant course offerings is echoed in the Vision, Mission, and Values. KCTCS Partners KCTCS Leadership was provided by: o o Wendell Followell – Vice President Jackie Cecil – System Director of Human Resources pg. 5 Market Analysis As part of the comprehensive compensation review, HRG conducted a market analysis of the position of the KCTCS President. • Scope • Survey sources investigated were College and University Professional Association of Human Resources (CUPA-HR), The Chronicle of Higher Education, Buck Consultants, Dolan Technologies, Kenexa IBM, ERI, AACC, and phone calls to individual college systems’ across the country. • Data cuts were made on the following: • • Individual institution list created by the KCTCS System Office Staff • The Chronicle of Higher Education • Four CUPA-HR scope cuts – FTE, Operating Expense, Student FTE, all Associate Degree colleges • Kentucky’s public higher educational institutions Results • Data for the president of a community college system is difficult to obtain because the number of similar institutions is limited. • The market composite of base salary is $347,254 with a total compensation of $357,981. • Dr. Jay Box’s salary is $345,000 with a total compensation of $375,000. pg. 6 Summary of Findings: The Chronicle of Higher Education – Comparable Community College System Leaders 2016 Base 2016 Total Comp $525,000 $546,210 $546,210 $381,164 $504,457 $396,563 $524,837 Chronicle of Higher Ed $369,229 $429,229 $384,146 $446,570 Timothy White Chronicle of Higher Ed $410,000 $410,000 $426,564 $426,564 Rufus Glasper Chronicle of Higher Ed $273,508 $273,508 $284,558 $284,558 David Lassner Chronicle of Higher Ed $270,840 $270,840 $281,782 $281,782 $371,624 $402,172 $386,637 $418,420 Compared against KCTCS University of Wisconsin System University of Nebraska System Office Alamo Community College District California State University System Maricopa County Community College District University of Hawaii System 2015 Total Comp Survey Source 2015 Base Raymond Cross Chronicle of Higher Ed $525,000 James Milliken Chronicle of Higher Ed Bruce Leslie Average ** Ordered by Base Salary (descending order) pg. 7 Summary of Findings: Office of Research and Policy Analysis Institution Benchmark ORPA Institution Identified by KCTCS System Office President Alabama Community Mark Heinrich College System Alamo Community College Bruce Leslie District California Community Brice Harris College System Colorado Community Nancy McCallin College System Connecticut State Colleges Gregory Grey and Universities Illinois Community College Karen Hunter System Anderson Ivy Tech Community College Tom Snyder of Indiana-Central Office Maine Community College John Fitzsimmons System Maricopa County Rufus Glasper Community College District Minnesota State Colleges Steven Rosenstone and Universities System Montana University System Clayton Christian Office North Carolina Community Robert Ralls College System Ohio Association of Community Colleges Virginia Community College David Glenn System DuBois West Virginia Community and Technical College James Skidmore System Wisconsin Technical College Morna Foy System Average Alpha Order by Institute NA – Not available 2015 Total Comp 2016 Base 2016 Total Comp Survey Source 2015 Base Chronicle of Higher Ed $250,000 $250,000 $260,100 $260,100 Chronicle of Higher Ed $369,229 $429,229 $384,146 $446,570 Chronicle of Higher Ed $204,456 $204,456 $216,970 $216,970 Chronicle of Higher Ed $321,458 $321,458 $334,445 $334,445 Chronicle of Higher Ed $380,000 $380,000 $403,259 $403,259 Chronicle of Higher Ed $165,000 $165,000 $171,666 $171,666 From HRG call $357,500 NA $357,500 NA Chronicle of Higher Ed $173,535 $173,535 $180,546 $180,546 Chronicle of Higher Ed $273,508 $273,508 $284,558 $284,558 Chronicle of Higher Ed $380,406 $380,406 $395,774 $395,774 Chronicle of Higher Ed $294,538 $294,538 $306,437 $306,437 Chronicle of Higher Ed $286,954 $286,954 $298,547 $298,547 From HRG call $173,815 Chronicle of Higher Ed $373,503 $491,380 $388,593 $511,232 Chronicle of Higher Ed $175,504 $175,504 $182,594 $182,594 Chronicle of Higher Ed $166,169 $166,169 $172,882 $172,882 $271,598 $285,153 $281,990 $297,541 $173,815 pg. 8 Summary of Findings: CUPA-HR Benchmark from 4 different cuts of the CUPA data Number of Colleges Meeting Scope Number of Colleges Reporting Position Operating Expense > $250M, Associate Degrees (schools listed below) 18 FTE 1K-15K, Associate Degrees (schools listed below) CUPA-HR Scope (4) 25%ile Average Median 75%ile 14 $301,629 $337,181 $345,211 $382,831 13 9 $316,084 $353,113 $368,040 $398,831 Student FTE > 40K, Associate Degrees (schools listed below) 8 7 $345,211 $362,202 $368,040 $391,380 Associate Degrees 1,280 23 $246,371 $303,534 $307,038 $364,015 $302,324 $339,008 $347,082 $384,264 Average Participants in Operating Expense Greater Than $250M Alamo Colleges Austin Community College Broward College City Colleges of Chicago Colorado Community College System Cuyahoga Community College Dallas County Community College District System Summary Houston Community College Kentucky Community and Technical College System Office Lone Star College System Los Angeles Community College District Office Maricopa County Community College District System Summary Miami Dade College Austin Community College Central Piedmont Community College City Colleges of Chicago Dallas County Community College District System Summary Kentucky Community and Technical College System Office Lone Star College System Los Angeles Community College District Office Maricopa County Community College District System Summary Miami Dade College Minnesota State Colleges and Universities Two-Year Faculty Survey System Summary Montgomery College Portland Community College Tarrant County College District Virginia Community College System Office Participants FTE 1K – 15K Minnesota State Colleges and Universities Two-Year Faculty Survey System Summary Montgomery College Tarrant County College District Virginia Community College System Office pg. 9 Participants Student FTE Greater Than 40K Colorado Community College System Kentucky Community and Technical College System Office Lone Star College System Los Angeles Community College District Office Maricopa County Community College District System Summary Miami Dade College Minnesota State Colleges and Universities Two-Year Faculty Survey System Summary Virginia Community College System Office pg. 10 Summary of Findings: Kentucky Public Higher Education Institutions KY Institution Name Base Salary* EKU Michael Benson $400,000 KSU Raymond Burse $259,745 Morehead Wayne Andrews $344,728 Murray State Robert Davies $303,125 NKU Geoff Mearns $355,250 UK Eli Capilouto $535,500 UL James Ramsey $360,283 WKU Gary Ransdell $427,824 Average $373,307 Notes Gave up $90K in salary to min wage workers $380,250 - Reported by the Courier-Journal $624,000 - Reported by the Courier-Journal *Reported by the respective university pg. 11 Summary of Findings from 4 surveys described above: Overall Market Composite Base Salary Total Comp Chronicle of Higher Education Page 8 $386,637 $418,420 OPRA Scope Page 9 $281,990 $297,541 CUPA-HR Scope (4) Page 10 $347,082 NA KY Institutions Page 11 $373,307 NA Average $347,254 $357,981 NA-Not Available pg. 12 Findings The information presented is from The Chronicle of Higher Education. • “The Chronicle's algorithm for determining "similar institutions" uses factors such as Carnegie classification, endowment value, total expenditures, percent of expenditures spent on instruction, admissions rate, and religious affiliation, as well as enrollment, percent of graduate students, percent of undergraduates who are 25 or older, percent of Pell Grant recipients, and median SAT score.” The Chronicle’s algorithm does not look at colleges vs universities. • All data has been aged to 2016 using 2% annually. pg. 13