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Salary Increases & Bonuses

(Approved by President Turner on February 23, 2000)

I. Purpose and Applicability

It is the policy of the University that members of the exempt staff are eligible to receive salary increases for reasons of adjustments of the salary range for their job; annual salary increases based on performance; and promotion. This policy also establishes the timing and basis for granting multiple adjustment increases and non-cumulative cash bonuses.

II. Cola

All regular exempt employees shall receive cost of living adjustment increases as appropriated by the State Legislature and approved by the Governor.

III. Performance Based Salary Increases

A. Provided funds are available, it is the University's policy that exempt employees who consistently meet the standards of performance for their positions shall receive performance-based salary increases. These increases normally are effective on July 1.
B. Salary increases shall be administered as follows:
Employees whose performance is satisfactory may receive an adjustment in a dollar or a percentage amount annually promulgated by the President.
Employees whose performance is outstanding on an overall basis throughout the evaluation period may receive an adjustment of up to twice the dollar or percentage amount set for satisfactory performance.

IV. Promotion

Upon promotion to another position with a higher assigned salary range, an employee will receive a minimum salary increase of 6% or the amount required to meet the minimum of the new salary range, whichever is greater.

V. Priority for Processing Simultaneous Pay Transactions

When two or more pay transactions are to occur simultaneously, the order of processing shall be:

A. Cola
B. Salary range adjustment, if any;
C. Any other transaction, such as performance pay;
D. Promotion.

VI. Non-Cumulative Cash Bonuses

A. A bonus is defined as a lump sum non-cumulative cash award that may be granted to a regular employee in recognition of an extraordinary contribution which substantially benefits the institution. Bonus payments shall not be counted as base salary. Because they are for "extraordinary" contributions, it is not expected that bonuses will be awarded annually or on any other regular basis.

B. In accordance with guidelines established by the Chancellor of the USM and availability of funds, the President will, annually, establish criteria for bonus eligibility, review, approval, and amount of bonus awards.