THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

RICHARD C BLUM 909 Montgomery Street

Suite 400
San Francisco, CA 94133
(415) 434-1111
Fax: (415) 434-3130

March 27, 2008

Mark G. Yudof
Bauer House

1909 Hill Oaks Court

Austin, TX 78703

Dear Mark:

I am pleased to recommend to The Regents of the University of California ("University"

or "UC") at their March 27, 2008 meeting that you be appointed to the position of
President, University of California, subject to Regental approval and effective on a date
to be mutually agreed upon, but no later than September 1, 2008 ("Effective Date").
Your appointment comes at a critical time in the University's history and I know you will
make an important contribution to the future development and success ofUC.

The following summarizes the terms and conditions of the job offer that I am prepared to
present to The Regents for approval. If you agree with the details as shown, please sign
and return this letter to indicate your acceptance of these terms, and I will recommend
your appointment to The Regents.

Your appointment is contingent on Regental approval. Once approved by The Regents,

the terms of your compensation (as defined in The Regents' 1993 Principles for Review
of Executive Compensation) contained in this offer letter will be released to the public.

1. Base Salary

Your recommended base salary is $591,084 per year, effective the date of your
appointment. Your first salary review will occur on October 1, 2009, in
accordance with established procedures for Senior Managers.

2. Automobile AJIowance

You will be provided with an automobile allowance, consistent with University

policy. This benefit will be in the form of a monthly allowance and will be
considered taxable income, subject to appropriate tax withholding. Additional
Chancellor Yudof
Page 2
information can be found in our policies at: http://ucop.edulucophome/policies/
acctman/e-821.pdf.

3. Outside Professional Activities

You may accept honoraria for activities outside the University of California and
you may accept stock options and other forms of remuneration as compensation
for corporate board service and other professional activities in accordance with
the University's policy and guidelines on outside professional activities that apply
to the President and Senior Managers. A copy of the policies and guidelines is
attached.

You should also know that all board service (compensated and non-compensated)
and any compensation derived from it is reported annually to The Regents and to
the public.

Based on our discussions, we will report to the Regents that you currently serve
on the Board of Directors of Healthtronics, Inc. and that we are working to
identifY any conflicts of interest that should be resolved before the Effective Date
in connection with such service. Please let me know prior to the Effective Date if
you are engaged in any other board service, including compensated and non­
compensated board memberships, so that they can be approved and reported to
The Regents in accordance with University policy.

4. Housing

As President, you will be provided suitable housing by the University and be

required to live full-time in the accommodations and use such residence for
University-related business functions. In the event it is necessary to lease
facilities for housing accommodations, those housing arrangements will be
approved by the Committee on Compensation. We are also reviewing any tax
implications of a leased arrangement and will provide you with information as it
becomes available and amend the terms of your compensation as agreed upon if
such housing is taxable.

Any repair, upkeep and house maintenance will need to comply with the
Implementing Requirements that provide detailed instructions to assure
accountability for the use of University resources. These instructions can be
found at http://www.ucop.edulucophome/policieslbfb/g45.pdf.

5. Vacation, Sick Leave, Disability, Health and Welfare Plans

You will be eligible to participate in the University's health and welfare benefit
options and under the University-wide programs for vacation, sick leave and
disability. You will be eligible for our Senior Management benefits, including
University-provided Senior Manager Life Insurance coverage of $850,000,
Executive Business Travel Insurance and Executive Salary Continuation for
Disability. You may also purchase supplemental life insurance up to a maximum
 Chancellor Yudof

Page 3

coverage amount of $1 ,000,000 under the University's program. Please see the
enclosure to this letter for a brief description of these various programs.

I 6. Retirement Plans

I will be recommending to The Regents that the University provide you with a
Supplemental Retirement Benefit (SRB) provided primarily under the
University's defined benefit retirement plan, the University of Cali fomi a
Retirement Plan (UCRP) and will be in lieu of the basic UCRP benefit for your
1
first seven years of University employment.. This SRB would provide an
annuity that annually increases over your first seven years of University
employment to produce a benefit of an individual life annuity of $350,000. 2 Your
SRB will be immediately vested and will accrue at the end of each year to provide
the following annual benefits as of the end of Years 1-7: Year 1-$29,554; Year 2­
$60,217; Year 3-$92,029; Year 4-$127,307; Year 5-$230,000; Year 6-$300,000;
and Year 7-$350,000 (In other words, if you terminate employment after Year 3,
your annual retirement annuity will be $92,029, or if you terminate employment
after Year 7, your annual retirement annuity will be $350,000.) For any
additional years of University employment after Year 7, your retirement benefits
will accrue at the basic UCRP rate, currently 2.5% of the average of the highest
three years of covered compensation (under the normal UCRP formula) to the
extent such benefit exceeds the previously accrued SRB amount of $350,000.

As part of your compensation package and in addition to the regular funding of

UCRP benefits, additional funding will be provided by UC for the first seven
years of your University employment to produce the promised SRB. Such
contributions, in addition to normal UCRP funding amounts, for the first seven
years will be: $228,000; $237,256; $246,487; $256,065; $266,001; $229,673;
$229,673. You will be required to make mandatory employee contributions as
required under UCRP. Currently, employee contributions are redirected from
UCRP to the University of Cali fomi a Defined Contribution Plan (the "DC Plan").

Your mandatory DC Plan contributions, based on your salary, will be made to

your account under the DC Plan until such time that such contributions are
directed back to UCRP. Your mandatory contributions will be made at the
current rate of: 2% of salary up to the Social Security wage base (currently
$102,000), and 4% of salary over the Social Security wage base, less $19 a
month. The contributions being redirected to the DC Plan are on a pre-tax basis
and you can direct the investment of your account under the DC Plan.

You will also be eligible for the survivor benefits coverage under UCRP. This
feature of the plan provides an individual who has at least two years of University

\1 UCRP currently provides basic retirement benefits, at age 60 or over, of2.5% of average compensation
;for the high three years, subject to a five year vesting schedule. The University estimates that the basic
\UCRP benefit would be less than the SRB for your first seven years of employment and, therefore, the
~iscussion references your basic UCRP benefit after year seven when the SRB accruals cease.
o If necessary, another retirement plan may be used to provide this benefit.
Chancellor Yudof
Page 4
employment, but less than five years when he dies (and is an active member at his
death), a pre-retirement survivor benefit to his spouse equal to 25% of the
employee's monthly final salary (minus $106.40 as an offset for social security).
If you have five or more years of University employment at death, (and you are
active, disabled or an inactive member ofUCRP), your spouse will be entitled to
the greater of final salary benefit described above or the benefit the spouse would
be entitled to under UCRP as though you had retired the day before death and
elected a full joint and survivor with your spouse as the contingent annuitant. (The
SRB discussed above would be used to calculate a surviving spouse benefit after
five or more years of employment with the University.)

In addition to the required employee contributions to the DC Plan, you will also
be eligible to participate and defer a portion of your salary to the University of
California Tax Deferred 403(b) Plan and the University of California 457(b)
Deferred Compensation under the terms of those plans.

For advice and assistance concerning your coverage under these University-wide
employee benefit programs, as well as any special benefit arrangements that may
apply in your case, please feel free to contact either Associate Vice President of
Human Resources and Benefits, Judy Boyette at (510) 987-0301 or
Judy.Boyette@ucop.edu or Executive Director of Senior Management
Compensation, Policy and Recruiting, Dennis Larsen at (510) 987-0299 or
Dennis.Larsen@ucop.edu.

7. Sabbatical Leave

If your appointment is approved by The Regents and you seek and obtain a
faculty appointment, you will accrue sabbatical credits as does any member of the
faculty under the University's sabbatical policy found in the Academic Personnel
Manual at APM 740 and APM 758 (APM 740:
http://www.ucop.edu/acadadv/acadpers/apm/apm-740.pdf and APM 758:
http://www.ucop.edulacadadv/acadpers/apm/apm-758.pdf). After earning
sufficient credits to qualify for a leave, you will be eligible to take sabbatical
leave in accordance with these same academic policies.

I would like to highlight a couple of points about the current sabbatical policy.
Should you hold a full time administrative position for five years or more and
qualify for sabbatical leave at the end of your tenure as President, you will be
allowed to take a leave immediately following your service as President. This
leave will be in lieu of a sabbatical leave and will be classified as an
administrative leave, in accordance with University policy. Your salary level
during this leave will be at the rate of your Presidential salary. As required by
policy, should you choose to take administrative leave, you will be required to
return to University service directly following that leave for a period at least equal
to the period of the leave.
Chancellor Yudof
Page 5
You should know also that The Regents are in the process of reviewing this policy
and it will likely be revised in the near future. Please note that you will be subject
to any newly implemented policy regarding sabbatical and administrative leave in
lieu of sabbatical, including the rate of pay for such leave should you be eligible
for this leave after stepping down as President.

8. Faculty Status

In accordance with the normal academic process, you will be recommended to

receive an appointment as Professor at 0% time at the University of California,
Berkeley Campus. The approval process for a tenured faculty appointment will
be expedited. Your faculty salary will be adjusted in accordance with the normal
academic process. This salary level will only be used if you choose to return to
the faculty upon stepping down as President.

9. At Will Employment

Your appointment as President, if approved by the Regents, is an "at will"

appointment, which means you will serve at the pleasure of the Board of Regents,
and your appointment can be terminated at any time with or without cause. To
that end, if your appointment is terminated other than for cause, you will be able
to exercise the retreat rights to your academic appointment that may be
established. If your appointment as President is terminated for cause, the
University reserves the right to institute disciplinary or dismissal proceedings
regarding your faculty appointment pursuant to personnel policies applicable to
members of the Academic Senate.

10. Performance Reviews

As a direct report to the Board of Regents, you will participate in an annual

performance review process that The Regents will initiate. The process for
performance reviews for senior managers is under review at this time, but it is
likely that the process will include a leadership review that will occur every five
years.

11. Moving Costs for Personal and Office Items

In lieu of the relocation allowance of25% of your base pay ($147,771) available
under policy, the University will contribute this amount toward your retirement
benefits provided through UC's tax-qualified plans, including your SRB.

In addition, you will be provided reimbursement of normal relocation services,

under policy. UC will arrange for packing and relocation of your household
effects associated with the relocation from your current residence to the housing
provided for the President, which will be in the San Francisco Bay Area, up to a
maximum of$25,000. This will include up to 30 consecutive days of storage of
and insurance for household goods and personal effects while in transit.
Reimbursement of packing, relocation, and storage expenses will be according to
Chancellor Yudof
Page 6
policy. Eligible expenses and reimbursements are defined under policy and
regulations governing moving and relocation. The move must be completed
within one year from the Effective Date in order for it to be considered by the IRS
as nontaxable and may be accomplished in one or more stages. If you will be
relocating to a furnished President's house, and if your personal furniture cannot
be accommodated within the house, the University will reimburse you reasonable
storage and insurance costs for up to one month, per policy. In addition, the
University will also arrange to pack and move your library and related materials
to the Oakland area from your current offIce in accordance with policies relating
to this move; reimbursements of actual expenses associated with moving your
library are excluded from the $25,000 limit noted above.

Arrangements will be made with the moving company for packing your effects in
the old location and unpacking in the new location. Please be aware that there
may be tax implications to you for some of these reimbursements or payments,
and we suggest that you seek the advice of a qualified tax consultant.
Reimbursement for the cost of transporting household goods and travel (excluding
meals) to a new location is not included in taxable income provided the move of
you and your spouse is made within one year.

Upon leaving the President's position, and provided you return to the University
of California faculty upon stepping down as President, movement of your
personal belongings will be arranged and paid for by the University to a location
close to the Berkeley campus.

The University will also arrange to pack and move your library and related
materials to your new faculty office from your current office in accordance with
policies relating to this move. According to policy, if you do not return to a UC
faculty position, relocation benefits will not be provided for moving personal or
library effects.

Details of the moving and relocation policy can be found on line at web site
http://www.ucop.edu/ucophome/policieslbfb/g 13all.pdf.

If you have any particular questions regarding the application or interpretation of

this policy, please contact Dennis Larsen on (510) 987-0299 or
Dennis.Larsen@ucop.edu.

112. Reimbursement of University-Related Expenses

Reimbursement of expenses for University-related business after appointment but

prior to the Effective Date will be reimbursed in accordance with University
policy (Business and Finance Bulletin G-28). (The tax implications may vary
depending upon if the expenses are paid before or after the Effective Date.)
Chancellor Yudof
Page 7
13. Annual Compensation Reports

You should be aware that all elements of your compensation, benefits, perquisites
and outside compensation will be reported annually to the Board of Regents and
will be made available to the public. In addition, similar information will be
provided to The Regents and the public as part of your initial appointment
process.

14. Administrative Fund Allocation

You will be entitled to an annual Administrative Fund allocation for official

entertainment and other purposes permitted by University policy and procedures.
The amount of this fund is established by The Regents on an annual basis and will
be subject to the University's Accounting Procedures for administrative fund
payments.

In accordance with University policy, your spouse may be appointed formally as

Associate of the President. Under this policy, the travel expenses of your spouse,
if she accompanies you on official University-related business, are reimbursable,
provided it can be established that the spouse's presence serves a bona fide
University business purpose. Spousal travel expenses may not be charged to state
funds. The following link provides you with details of the Policy on Associate of
the President: http://www.ucop.edu/ucophome/coordrev/policy/4-11-9S.htmI.

15. Reimbursement of Club Memberships

It is the policy of the University of Califomia to consider University membership

in organizations that would promote the advancement of education and research,
enhance the professional standing of its administrative personnel, and facilitate
favorable community relations. A major consideration in securing a membership
is the cost of membership in relation to the benefits the University expects to
derive from an individual's membership. Any personal use of a social club
membership would be included in your taxable income. The following link
provides additional detail on this policy. http://www.ucop.edu/ucophome/
policies/bfb/g43.pdf

16. Public Disclosure

You will be required to comply with the requirements of the California Political
Reform Act with respect to disclosure and disqualification. The following link
provides details on this policy. http://www.ucop.edu/ogc/coi/econinterest.html

All elements of your total compensation package-both cash and non-cash

compensation, benefits and perquisites-are represented above. I trust I have addressed
all the items necessary to secure your commitment to become the new President of the
University of California. I very much look forward to working with you during the
corning months.
Chancellor Yudof
Page 8
The Chair of the Committee on Compensation has indicated that the Committee would
like to have a signed copy of this letter before the meeting on the afternoon of March 27.
Please sign a copy of this letter and return it to Associate Vice President Judy Boyette
when you arrive in Oakland this week or earlier via fax at (510) 587-6476. I look forward
to your confinnation of these tenns.

/.~

,I )
/
"

-,---­
Richard C. Blum
Chainnan, Board of Regents
University of California

cc: General Counsel Robinson

Secretary & Chief of Staff Griffiths
Associate Vice President Boyette

Please indicate your acceptance of these tenns by your signature below.

ATTACHMENT

More Detailed Descriptions of Benefit Items

Summary:
Enclosed are more detailed descriptions of some of the current benefit programs UC
offers, as referred to in the offer letter.

I. Health and Welfare Benefits

Medical
UC offers a wide range of medical plans from which an eligible employee may
make a selection. The options available are listed on page 21 of the enclosed
booklet, Your Group Insurance Plans.

Dental
UC offers a choice of two dental plans, as described on page 27 of Your Group
Insurance Plans.

Vision Care
UC offers a Vision Plan that covers a variety of vision care services, as described
on page 31 of Your Group Insurance Plans.

Disability Insurance
UC offers a Short-Term Disability Plan that pays 55% of eligible earnings for up
to six months ($800 monthly maximum), after a waiting period. Supplemental
Disability Insurance may be purchased by the employee to provide extended
coverage to pay up to 70% of eligible earnings ($10,000 monthly maximum).
Both plans are described on page 33 of Your Group Insurance Plans.

Life Insurance
UC provides eligible employees with life insurance equal to annual base salary up
to $50,000. Supplemental Life insurance may be purchased by the employee to
provide coverage up to four times annual salary (to $1,000,000 maximum). The
plans are described on pages 39-40 of Your Group Insurance Plans. Dependent
Life insurance may be purchased by the employee as described on page 43 of
Your Group Insurance Plans.

AD&D Insurance
AD&D Insurance may be purchased by the employee to provide up to $500,000
protection for employee and family for accidental death, loss of limb, sight,
speech, or hearing, or for complete and irreversible paralysis, as described on
page 46 of Your Group Insurance Plans.
 Legal Insurance
Legal insurance may be purchased by the employee to provide basic legal
assistance for preventive, domestic, consumer, and limited defensive legal
services, as described on page 49 of Your Group Insurance Plans.

Eligibility for These and Other Benefits

See pages 3-7 of Your Group Insurance Plans to determine eligibility for these
and other Health and Welfare benefits for employees and their family members.
An eligible employee should enroll in DC-sponsored plans when first becoming
eligible; most plans have an enrollment deadline.

II. Retirement Plans

University of California Retirement Plan

One of the most generous benefits ofUC employment is the University of
California Retirement Plan (UCRP). UCRP benefits include lifetime monthly
retirement income, disability benefits, survivor income, and death benefits.
Please see the enclosed Summary Plan Description for more information. Please
note that the Supplemental Retirement Benefits described in this letter will apply
in your case and we will provide further details on those benefits. The materials
provided here are for the standard benefits provided to all regular University
employees.

Retirement Savings Plan

The UC Retirement Savings Program offers a convenient, tax-advantaged way to
save for retirement. The Program consists of:
• the Defined Contribution Plan,
• the Tax-Deferred 403(b) Plan, and
• the 457(b) Deferred Compensation Plan.
Please see the enclosed Summary Plan Descriptions and 457(b) Deferred
Compensation Plan booklet for more information.

III. Vacation Eligibility

UC provides vacation for rest, relaxation, and renewal to eligible employees as

described in the enclosed Personnel Policies for StaffMembers, 41. Vacation.

IV. Senior Management Benefits

In addition to the above, members of the UC Senior Management Group with full­
time (100 %) career appointments may be eligible for additional benefits as
described in the enclosed Senior Management Benefits brochure.
Senior Management Supplemental Benefit Program
The Senior Management Supplemental Benefit Program provides for a 3% or 5%
contribution (based on the appointment level) to the Retirement Savings Program.
Certain Senior Managers in full-time appointments are eligible to participate in
the Program. You are not eligible to participate in the program if you:
• hold a tenured academic appointment;

• are appointed less than full-time; or

• are appointed in an acting or interim capacity.

Since you are being provided the Supplemental Retirement Benefits described

in this letter, you will not be eligible for the Senior Management

Supplemental Benefit Program.

Salary Continuation for Disability

Senior managers with five or more consecutive, uninterrupted years of service
who become totally and permanently disabled are eligible to receive 12 months of
full salary continuation before receiving DC-sponsored disability insurance
benefits.

Senior Management Life Insurance

Senior managers are eligible for DC-Paid Senior Management Life insurance.
The coverage amount is two times your annual salary to a maximum of $800,000.
The coverage is in addition to the $50,000 DC-paid Life insurance and any
coverage selected under the employee-paid Supplemental Life insurance. DC
pays the premiums for Senior Management Life insurance, but under the Internal
Revenue code, the value of employer-paid life insurance in excess of $50,000 is
taxable income to you and is reported on your annual Form W-2. You may,
however, decline or discontinue this coverage at any time.

Business Travel Accident Insurance

As a member of the Senior Management Group, you are provided with Business
Travel Accident Insurance coverage in the amount of $250,000 when you travel
on DC business. DC pays the premiums.
The Regents of the University of California
Regents President
OFFIce OF THE SECRETARv
OF THE REGt:rnS
1111 Fronldm St, 12th FIC>:lr
ODklllnd. CA 0.,607
,~1 (510) 987-9220
fulC (SLO) 987·9224
Please email questions
or comments about the
Regents' website to
Anne...SbID't
Last updated:
March 20, 2008
http://www. universityofcalifornia.eduJregents/policies/61 58.html
Page 1 of 1
AC;21c1emle AboutUC News Office of the SystemwIde
Senate PresIdent Home
Cu rrent Policies
POLICY ON OUTSIDE PROFESSIONAL ACTIVITIES OF THE PRESIDENT,
PRINCIPAL OFFICERS OF THE REGENTS, AND OFFICERS OF THE
REGENTS
Approved March 17, 1995
For the purpose of codifying and clarifying long-standing University
practice, The Regents establish the policy described below pertaining
to outside professional activities, Including paid service on corporate
boards, for the President, Principal Officers of The Regents, and
Officers of The Regents•
. 1. Service to outside public or private organizations may Include,
professional and creative activities that benefit the state, the nation,
and the public at large.
2. Service on behalf of national commissions, government agencies
and boards, advisory groups to other universities, and other' nonprofit
organizations Is encouraged and may be undertaken during regular
work time, subject to conditions established In University policies and
implementing procedures, including provisions for receipt ot' honoraria
and reimbursement for travel and per diem expenses incurred.
3. If compensation is received for service on a corporate board:
a. Such service by the President and Principal Officers of The Regents
shall be subject to reView and prIor written approval by the Chairman
of the Board and shall be reported to The Regents at the next meeting
following the approval. In the case of an Officer of The Regents, the
review and pribr written approval of such service shall be the
responsibility of the appropriate Principal Officer of The Regents.
b. Vacation leave shall be used if such service takes place during
regular work time. Reporting of time will be consistent with University
personnel policies and the Fair Labor Standards Act status of the
Officer. ,
c. The President, Principal Officers of The Regents, and Officers of The
Regents shall be subject to the policy on outside professional activities
for faculty.
d. All other applicable University personnel policies and the University
of California Conflict of Interest Code shall apply to service to outside
organizations.
3/21/2008
 University of California Human Resources and Benefits· At Your Service Page 1 of2

)
~ t:!2!M < Policies, Employee and labor Relations < Personnel Policies for Staff Members

Interim Policy on Outside Professional Activities for University Officers and

Designated Staff

On January 18, 2007, The Regents approved the following Interim modification to the
Policy on Outside Professional Activities for University Officers and Designated Staff,
consistent with the recommendations of the Task Force on UC CompensatIon,
Accountability and Transpa~ency: ' '

L. This interim policy shall apply to all University employees who are members of the
Senior Management Group or who are Designated Officers of the University,
hereafter referred to as "Designated Employees".

~. Service on a for-profit board that is not an entity of the University of California, for
which the Designated Employee receives compensation and for which the Designated
Employee has governance responsibilities, hereinafter referred to as a Designated
Board, shall not exceed three such Designated Boards unless approved In advance
and In writing by the Chair of the Compensation Committee of The Regents and the
President. .

3. Any such service on any Board InclUding Designated Board(s) shall not negatively
impact any employee's, including any Designated Employee's, ability to perform their
duties and responsibilities, nor result In any potential conflict of Interest, related to
their University of California positlon(s).

k The time reqUired by the Designated Employee to perform their obligations on a

Designated Board(s) shall occur during non-University business hours or the
Designated Employee shall utilized their vacation hours.

5. All Designated Employees shall obtain prior written approval to serve on any Board,

including Designated Board(s), from their immediate supervisor.

). Board Service in Excess of Three

A. For those Designated Employees who currently serve on more than three
Designated Boards, those Individuals shall notify The President of the University
of such service and the Designated Boards upon which they serve, and shall
divest themselves of those Designated Boards In excess of three such Designated
Boards by December 31, 2007.
B. A Designated Employee who currently exceeds the limit set forth In paragraph 2
above and who desires to continue to exceed this limit after December 31, 2007
shall obtain prior approval from the Chair of the Compensation Committee of The
Regents and the President prior to December 31, 2007 for such additional
Designated Board service. Consideration shall be given to the circumstances
surrounding the undertaking of service of any Designated Board in excess of
three in determining the ability of the Designated Employee to continue such
service.

This modification will become effective immediately and will stay in effect until

htlp:llatyourservice.ucop.edu/employees/policies_employeeJabor_relations/personnel-po1... 3/21/2008
 University of Califomia Human Resources and Benefits· At Your Service Page 20f2

Implementation of a revised permanent polley which Is currently under systemwide

·.) review.

In the event a conflict arises between this modification and current policies and/or
guidelines, the Interim provision shall prevail.

University of California - Human Resources and Benefits

<At Your Service I UCOP Home I Site Mapi Terms of USe I ~

hUp: I /atyourservlce .UCDp. edu/

Last rllodifled 09/26}2007 11:39:43

http://atyourservice.ucop.edulemployees/policies_employee_labor_relations/personnel-poI... 3121/2008
Policy on Outside Professional Activities... Page 10f3

University of California
. Office of the President
July 1, 1995

Policy on Outside Professional Activities

for University Officers and Desienated Staff

The opportunity for employees to engage in outside professional activities is a privilege long recognized
by the University. Longstanding University policies and practices, including Regents' Standing Orders,
have recognized the value of contributions made by University employees to external educational and
research institutions, not-for-profit professional associations, State and Federal government, and private
sector organizations. Considerable benefit accrues to the University from such service, deriving from
association of University leaders with business leaders and the exchange of ideas among them. Such
associations are intended to create a broader and deeper understanding and awareness of the University
of California and its value to the State and the nation as a provider of education, research, public service,
and health care. Such service also provides a stimulus for economic development and enhanced
economic· competitiveness. .

While professional activities outside the University are beneficial and are to be encouraged, the primary
commitment of University of California employees shall remain the fulfillment of regular University
responsibilities. Outside professional activities shall not be pennittea to conflict with the commitment
expressed in Regents' Standing Order I03.1(b) which provides that:

"No one in the service ofthe University shall devote to private purposes any portion oftime due to
the University nor shall any outside employment interfere with the performance of University
duties. Arrangements for private employment by Officers, faculty members, or other employees of
the University shall be subject to such regulations as the President may" establish. "

1. Applicability

Consistent with Regental policy, outside professional activities of University staff members at the
executive level, including Officers of the University, shall be subject to the provisions of this
Policy.

II. Outside Professional Activities

Permissible outside professional activities include, but are not limited to, service on State or
national commissions, government agencies and boards, committees or advisory groups to other
universities, organizations established to further the interests of higher education, not-for-profit
organizations, and service on corporate boards of directors.

Service on behalf of national commissions, government agencies and boards, advisory groups to
.other universities, and other nonprofit organizations is encouraged and may be undertaken during
regular work time, subject to conditions established in University policy concerning receipt of
honoraria and reimbursement for expenses incurred as stated in Section IV. below.

In the case of outside professional activities for which compensation is received, a University
employee shall use accrued vacation leave when participating in outside professional services
during the regular work week, consistent with personnel policy requirements.

http://www.ucop.edu/ucophome/coordrev/policy/6-28-95att.html 3/2] /2008

 Policy on Outside Professional Activities... Page 2 of3

For Officers of the University, Principal Officers of The Regents, Officers of The Regents, and
other executives who hold an Academic Senate or other faculty title, outside professional
)
activities shall also be subject to the time limits established in the President's Policy on Outside
Employment of Faculty.

III. Conflict of Interest

Participation in outside professional activities, including service on corporate boards, shall be in

accordance with Regents' Standing Order 103.1(b) and shall not interfere with the performance of
University duties. .

University policies on conflict of interest in conformance with the State'of Califomia's Political
Reform Act of 1974 are applicable to outside professional activities.

IV. Receipt of Honoraria and Travel Reimbursement

Receipt'ofhonoraria and travel reimbursement for expenses incurred in performing outside

professional activities shall be in accordance with existing University policies and procedures,
including but not limited to:

Executive Program Policy 8.J.

Academic Personnel Polices 025, 660, and 667
Business and Finance Bulletin: BUS-34
Business and Financ~ Bulletin: G-28
Accounting Manual D-371.35
~ . Policy and Guidelines Regarding Acceptance of Gifts and Gratuities under California's
Political Reform Act

V. Approval Authority

Service for which compensation is received, including membership on a corporate board, shall be
approved in advance and in writing by the immediate supervisor of the Officer of the University
or staff member.

VI. Reporting Requirements for Corporate Board Service

The Chancellors, Laboratory Directors, and the Senior Vice President--Business and Finance shall
submit a report annually to the President, including the following information:

a. name and title of the Officer of the University or other administrator covered by this Policy
and the corporate entity for which service is performed;

b. the general nature of each professional relationship;

c. the term of each professional relationship; and

d. the number of days spent during the fiscal year for such service.

Paid service on a corporate board by Officers of the University shall be reported annually to The
Regents.

http://www.ucop.edu/ucophome/coordrev/policy/6-28-95att.htmI 3/2112008
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http://www.ucop.edulucophome/coordrev/policy/6-28-95att.html 3/21/2008